Diwali, known as the Festival of Lights, marks a time of celebration, prosperity, and the symbolic triumph of light over darkness.
One unique Diwali tradition is rooted in the Indian stock market. What is Muhurat Trading time? Muhurat Trading is a short, designated trading session considered to be highly auspicious.
What is Muhurat Trading?
The word “Muhurat” in Hindu culture signifies a specific, favorable time determined by planetary alignments that is believed to yield positive outcomes. In the financial world, Muhurat Trading is a one-hour trading session held on Diwali evening, giving traders and investors a chance to participate in this auspicious ritual.
The NSE and BSE set this special timing each year, with many viewing the session as an opportunity to invest for prosperity.
Historical Significance of Muhurat Trading
Historically, brokers would begin their financial year on Diwali by opening fresh accounts and performing the Chopda Pujan, a traditional worship of account books. Traditionally, different communities had their own beliefs—Marwari investors, for instance, were known to sell stocks, while Gujarati traders would buy shares, hoping to bring prosperity into the new financial year.
Today, Muhurat trading has become largely symbolic. Investors and traders still make token purchases, often dedicating them to Goddess Lakshmi—the deity of wealth—to welcome prosperity in the year ahead.
What Happens During Muhurat Trading?
The Muhurat trading session is divided into segments that enable investors and traders to conduct their activities within this short window. Typical phases include:
- Pre-Open Session: A time for placing orders at a fixed price.
- Normal Market Session: The one-hour trading window where most activity takes place.
- Call Auction Session: Reserved for illiquid stocks.
- Closing Session: For traders wishing to place orders at closing prices.
Why Muhurat Trading Appeals to New and Experienced Investors
Muhurat trading is seen as a time for both new and seasoned investors to participate. The festive environment encourages optimism, and with many people investing during this period, the market often trends upward. However, for new investors, it can be wise to observe the session closely, as the high trading volumes and brief trading window can lead to increased market volatility.
For seasoned traders, this session offers the potential for quick profits if they stay vigilant about resistance and support levels.
Important Tips for Muhurat Trading 2024
- Stay Focused on Fundamentals: Select companies with strong fundamentals rather than speculative stocks.
- Volatility Awareness: Prepare for price fluctuations; limit investments to high-volume stocks for liquidity.
- Risk Management: Remember, auspicious timing doesn’t guarantee profits; stick with your financial goals.
- Avoid Rumors: Diwali excitement can fuel rumors; rely on research and stick to your investment plan.
- Settle Open Positions: All trades need to be settled after the session, so manage your positions accordingly.
Can I buy and sell stocks during Muhurat Trading?
Yes, you can buy and sell stocks during Muhurat Trading. It’s a special trading session that takes place on the day of Diwali, usually for an hour. It’s considered auspicious to start or add to investments during this period. However, it’s important to remember that Muhurat Trading is a short session with high volatility. So it’s crucial to have a clear trading strategy and risk management plan.
Muhurat Trading Timings 2024
This year, Diwali Mahurat Trading NSE will take place on Friday, November 1, 2024. The session timings are:
- Pre-Open Session: 5:45 PM – 6:00 PM
- Normal Market Session: 6:00 PM – 7:00 PM
- Closing Session: 7:10 PM – 7:20 PM
Mark these times to participate in this auspicious trading event.
Final Thoughts
Mahurat trading isn’t just about profit—it’s a cultural and symbolic gesture to welcome good fortune in the coming year. If you’re new to investing, consider it a learning experience, while experienced traders may find it a unique chance for quick gains. Embrace the festive spirit, but approach investments with a sound strategy for long-term success.
Rajani S
Rajani Shaw is an online news writer with nearly 4 years of experience. She loves to read and write about astrology, technology, entertainment and business.
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