Diwali the biggest festival in India especially for all the Hindu’s and follower of Sanatan Dharma is a very auspicious moment for every Indian having a lot of Cultural and Spiritual significance and one such significance for all the stock market investors is Muhurat Trading.
Thus, today on this auspicious moment let’s understand what is muhurat trading, muhurat trading history, muhurat trading 2024 time, etc.
So let’s get started!
Table of Contents
Muhurat Trading is a special 1 hour trading session open only on Diwali by the stock exchanges, for buying and selling of your stocks and derivatives (Futures and Options).
Diwali has a deep culture and spiritual significance that brings auspiciousness in everyone’s life. On Diwali people worship Goddess Laxmi Devi that represents the auspiciousness, good fortune, and prosperity or money (Laxmi).
Even Diwali marks a Hindu New Year For Gujaratis and some Northern Hindu communities too.
Thus, it is believed that booking some profit or buying some new good stocks or investments in this Muhurat Trading time will bring auspiciousness and a profitable year for everyone.
If we go back in history of Muhurat Trading then we will find that this tradition is first started by Bombay Stock Exchange in 1957 and later on adopted by National Stock Exchange too in 1992.
From that time every year on with Diwali celebrations, investors participate during this muhurat trading hours to bring the good fortune and prosperity.
Muhurat Trading made from two words Muhurat + Trading where word “Muhurat” meaning an auspicious time for starting any new thing in our life.
There are many beliefs of the people like many brokers on Diwali open new settlement accounts, while many stock market investors worship their account books, their office and equipment they use for trading & investing in stock market.
Marwari investors (one of the wealthiest community in India) believe’s that Muhurat trading session is the best time for selling the stock and booking some profit while Gujarati Investors believe that they should invest and buy some great stocks for long term for their family future.
Stock Market Diwali Muhurat Trading is usually conducted in the evening of Diwali for 1 hour. The exact time usually revealed 2-3 weeks before to the investors by stock exchanges.
While this year in 2024, Stock Market Diwali Muhurat Trading session will going to conduct on “November 1, 2024” from 6:00 PM to 7:00 PM.
In this muhurat trading session from 5:45 PM – 6:00 PM there is a pre open session while the actual trading will be going to start from 6:15 PM itself.
| Diwali Muhurat Trading Date | 1 November 2024 |
| Pre-Open Timing | 5:45 PM to 6:00 PM |
| Diwali Muhurat Trading Time | 6:00 PM to 7:00 PM |
You can trade on both the stock exchanges – Bombay Stock Exchange and National Stock Exchange.
There will be a Market Closing Session also when you can place the trades at the closing price of the stocks from 7:15 PM – 7:23 PM and finally the market will close at sharp 7:25 PM.
A regular session of the stock market firstly open on weekdays only except the national holidays.
Stock market pre-open from 9:00 AM – 9:08 AM and the actual trading starts from the 9:15 AM to 3:30 PM.
While in Diwali trading session the stock market open for only 1 hour even there is a National holiday.
As this, Muhurat trading is an emotion and the tradition of the people investing in stock market.
People are really enthusiastic and looks forward to bring the positivity and prosperity in their life by participating in this Diwali trading session.
Diwali Trading can look very lucrative for you, especially due to the festival and positive vibes around but you should consider the below factors before participating in Diwali trading:-
Yes, I know Diwali time is all auspicious that brings prosperity but stock market don’t work as per Diwali and there is no guarantee of assured returns.
Hence, if you wanted to invest or trade during muhurat trading then firstly, you should invest in well-establish companies, with having strong fundamentals so that even if you purchase at wrong price, in long term it will recover your all the mistakes.
Derivatives trading like futures and options are very popular among the new trader in India.
But you must understand that the Diwali trading session opens for 1 hour only and the probability of getting in the trade and then getting out of the trade in that short period is very difficult.
Secondly, the other reason behind this is that most liquidity in derivatives comes from fund houses which remain closed on Diwali hence, expecting much volatility in such time is unlikely.
Thus, you should avoid derivatives trading because if in any case if you have to face the loss then that will not only impact you financially but emotionally too on such festival vibe.
Getting unsolicited tips at such time is a much likely situation.
Thus, it is always advised to avoid such tips given by unregistered advisors because that can increase the chances of losses at the time especially when the trading remain open for 1 hours only.
This can be the best time if you are a long term investor to add some great companies to your portfolio.
As in the long term the companies tend to do well with strong underlying fundamentals and can prove profitable for you especially if you are planning to do some investment for your kids marriage, higher studies, etc.
Intraday Trading can be highly risky at such time because you will have only one hour to close the position.
Usually the stocks don’t show much volatility at such times as per my experience, hence intraday trading can be highly risky at such point of time.
As intraday trades are used to capture momentum else they result in losses.
Yes, you can trade in futures and option on Muhurat Trading Day but we strongly recommend you to stay away from derivatives on this day because you will not have much time to close that trade in profit and also the volatility remains low on Diwali Muhurat Trading day.
Yes, you can do both buying and selling of your shares in Muhurat Trading.
Yes, intraday trading is allowed in Muhurat trading.
A Very Happy And Prosperous Diwali 🎇🧨💣💥
Disclaimer: The Honest American provides financial education, investing strategies, & stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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