is Muhurat Trading?
According to the
Hindu calendar, Diwali which is the festival of lights is an auspicious
occasion. It represents the triumph of victory over evil, wisdom over
ignorance, and light over darkness.
Like every other
religious festival, Diwal is surrounded by a myriad of beliefs, rituals, and
traditions. Muhurat trading is one such tradition.
Every year, the
stock market sets the timing for Muhurat trading. On the auspicious festival of Diwali, the National Stock Exchange
(NSE) will celebrate Diwali Muhurat Trading on November 4, 2021.
'Muhurat' refers to a lucky time. Muhurat is a Hindu term that refers to a time
when the planets are in a favourable alignment, ensuring pleasant outcomes.
is a frequent practice among Indian traders. This is a one-hour window on
Diwali day that is considered lucky for stock investing. Every year, the stock
market sets the timing for Muhurat trading.
People who trade
during this one hour, according to tradition, have a higher chance of
accumulating riches and prospering throughout the year. Most people opt to buy
stocks as a gift to Goddess Lakshmi. This is exclusively seen in the Indian
What does Muhurat Trading involve?
For a limited
time on Diwali, both the NSE (National Stock Exchange) and the BSE (Bombay
Stock Exchange) allow trading. The session is usually broken into the following
Block Deal Session - When two parties agree to purchase or sell
a security at a set price and notify the stock exchange, this is known as a
block deal session.
exchange decides the equilibrium price during the pre-open session (usually
around eight minutes)
trading takes place during the normal market hour, which lasts one hour.
Call Auction Session - a trading session for illiquid securities. If
a security meets the exchange's standards, it is classified as illiquid.
can place a market order at the closing price during the closing session.
Muhurat trading timings 2021
Muhurat Trading Session: Capital Market
Pre-Open Market: 18:00 – 18:08 hours
Normal Market: 18:15 – 19:15 hours
Closing Session: 19:25
– 19:35 hours
How is Muhurat Trading beneficial?
volumes are high during the Muhurat trading session, it is a favorable
opportunity to purchase or sell stocks. In addition, the market is generally
bullish since the holiday atmosphere of prosperity and affluence encourages
individuals to be positive about the economy and the markets. As a result, the
Muhurat trading session is an excellent time for both seasoned and
inexperienced investors and traders.
Diwali is said to
bring wealth and success to those who believe in favorable planetary
alignments. As a result, if you've never invested in stocks before, Diwali
could be a fantastic time to start.
high-quality companies to invest in and acquire some stocks with a long-term
perspective and in accordance with your investment plan. If you want to go into
stock trading, it's a good idea to watch the markets during Muhurat Trading and
do some paper trading to get a feel for how things work. Markets are considered
to be volatile since the trading window is only open for one hour. As a result,
as a new trader, you should be cautious.
investors/traders would purchase and/or sell stocks as a gesture to appreciate
the auspiciousness of the day, therefore experienced day traders might gain
from this session.
that the attention isn't so much on profit as it is on the gesture. As a
result, experienced day traders might benefit handsomely by placing positions
after thorough evaluation. Since the pandemic wreaked havoc on companies and
livelihoods, this year has been a disaster for the economy. While many experts
predict a successful Muhurat trading session in 2021, you should maintain your
enthusiasm in your heart and use your intellect to make trading decisions.