Subscribe for real-time financial insights on Trade Target’s WhatsApp Channels
Diwali, known as the Festival of Lights holds a special place in the hearts of millions and has significant cultural and religious importance in the Hindu calendar. It signifies the triumph of light over darkness, wisdom over ignorance and goodness over malevolence. Among the various customs associated with Diwali, Muhurat Trading 2024 stands out as a unique tradition in the Indian stock market.
What is Muhurat Trading 2024?
Stock Market Diwali Muhurat Trading is a special hour on the festival of Diwali, which is considered lucky for making investments in the stock market. It is based on belief that during this Muhurat Trading time, good cosmic energies are aligned for positive outcomes. National Stock Exchange & Bombay Stock Exchange decide the exact timing for Muhurat Trading every year. People think that if they trade during this Muhurat Trading time period, it increases their chances of making money and having a prosperous year ahead.
History of Muhurat Trading
Muhurat trading is an age old tradition in the Indian stock market. It was initially a way for stockbrokers to begin their new year on Diwali by opening new settlement accounts for their clients during the auspicious Muhurat time. They used to perform a special ceremony known as Chopda Pujan to bless their financial records.
In the past, people believed that Marwari traders sold stocks while Gujarati traders bought stocks during the Stock Market Diwali Muhurat Trading. However, these beliefs no longer hold much value.
Nowadays, Muhurat trading is more of a symbolic ritual where most Hindu investors perform Lakshmi Pujan to worship Goddess Lakshmi and then invest in strong companies expected to yield long-term returns.
Also Read This: Fundamental Analysis of Persistent Systems
What Happens in Muhurat Trading Time?
During Muhurat Trading on Diwali Bombay Stock Exchange or BSE & National Stock Exchange or NSE have a limited trading session. This session includes:
Muhurat Trading Timings 2024
Muhurat trading session for the year 2024 is scheduled on Friday 1 November 2024.
- Block Deal Session: Parties mutually agree to buying or selling a security at a fixed price and report it to the stock exchange.
- PreOpen Session: The exchange determines the starting price, which lasts for about eight minutes. It helps set the initial prices for the trading session.
- Normal Market Session: This is a one-hour window when most of the trading activity takes place. It provides investors with the opportunity to engage in buying and selling stocks during this period.
- Call Auction Session: This session is for trading illiquid securities that meet specific criteria set by the exchange.
- Closing Session: At the end of the trading session, traders and investors can place market orders at the closing price.
| Muhurat Trading Session | Time |
|---|---|
Pre-Open Session | 6:00 PM - 6:08 PM |
Muhurat Trading | 6:15 PM - 7:15 PM |
Post - Close Session | 7:30 PM - 7:38 PM |
Market Close | 7:40 PM |
Who Can Benefit from Muhurat Trading 2024?
Muhurat trading is a special time to buy or sell stocks, usually during Diwali, when many people believe it brings good luck for wealth and prosperity. It’s a good opportunity for both experienced and new investors and traders. If you’ve never invested before, Diwali can be a great day to start. Look for good companies and buy some stocks with a long-term plan.
If you are new to trading, it’s smart to watch and learn during Muhurat Trading before jumping in. The market can be a bit unstable because it’s only open for an hour. So, it’s important to be careful.
Experienced traders can also benefit from this session. While some people might not be focused on making big profits, they may still buy or sell stocks as a gesture of good luck. Skilled day traders can make money by making careful decisions.
Things to Keep in Mind Before Starting Diwali Day Trading (Muhurat Trading 2024):
- Basic Foundation: Before investing, make sure to understand the company's core strengths and stability. Invest in a way that matches your long-term plan and how much risk you're comfortable with.
- Look for Busy Stocks: If you want to take advantage of price changes, pick stocks that are actively traded. This is important because, during Muhurat Trading, you only have one hour to buy or sell.
- No Sure Profits: Just because a stock does well on Diwali doesn't mean it will always do well. How it performs later depends on broader economic factors. So, invest wisely.
- Expect Surprises: On Diwali, the market can be a bit wild and unpredictable. It might not have a clear direction. So, keep an eye on the levels where prices might go up or down.
In short, focus on strong basics, choose stocks that are traded a lot, understand that Muhurat Trading doesn’t guarantee success, and be ready for some surprises in the market.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
