What is Muhurat Trading?

Muhurat Trading is a special trading session conducted by Indian stock exchanges on the occasion of Diwali, which marks the beginning of the Hindu calendar, Samvat. This ritual is considered auspicious by traders and investors alike, as they believe it brings prosperity and success for the upcoming financial year. Muhurat Trading is a long-standing tradition, with the session typically lasting for about an hour during the evening of Diwali.

Key points about Muhurat Trading:

• Takes place on Diwali, an auspicious day in the Hindu calendar.

• Lasts for a limited time, usually about an hour.

• Symbolises the start of the Hindu financial year.

Why Participate in Muhurat Trading?

Many investors and traders participate in Muhurat Trading for both its sentimental value and practical reasons. The session is seen as a way to usher in wealth and success, and aligning financial activities with positive sentiments and blessings.

Reasons to participate:

• Cultural significance: It’s an opportunity to engage in a time-honoured tradition, marking new beginnings in the financial world.

• Auspicious start: Many believe that trades executed during this period are blessed, leading to better financial outcomes.

• Sentiment-driven markets: The market tends to have a positive outlook during Muhurat Trading, often reflecting a buoyant mood among investors

Participating in this session can be a way to take advantage of the symbolic value as well as possible market movements.

What Happens in Muhurat Trading?

During Muhurat Trading, the stock market opens for a brief, ceremonial session. While the session is generally shorter than a regular trading day, it follows all the usual procedures. Traders engage in buying and selling stocks, with the sentiment of prosperity driving many of their decisions. The market may experience lower volumes than usual, but the positive sentiment often results in higher prices or specific patterns of stock behaviour

Key points

• The market remains open for about an hour.

• There is a pre opening session of 15 mins and a closing session of around 10 mins.

• Regular trading activities, such as buying and selling, take place across all segments.

• All intraday positions are squared off automatically 15 minutes before the session ends

• The muhurat trading session is largely driven by sentiment, often resulting in unique price movements.

Muhurat Trading Timing 2024

Muhurat Trading session will happen on the evening of Diwali – 01 November, 2024 to mark the beginning of Samvat 2081. As announced by the BSE and the NSE, the normal trading session will take place between 6:00 PM and 7:00 PM IST. This is preceded by a pre-opening session and followed by a closing session.

Diwali Muhurat Trading Time 2024:

• Date: 01 November, 2024.

• Duration: Approximately 1 hour.

• Timings:

  • Pre Opening Session: Between 5:45 to 6:00 PM IST

  • Normal Trading Session: Between 6:00 PM and 7:00 PM IST

  • Closing Session: 7:10 PM to 7:20 PM

Note: Diwali day is a settlement holiday. Therefore, F&O credits (such as premiums from options sold, marked-to-market profits, intraday gains, etc.) and intraday equity profits from 31st October will not be reflected in the available funds during the Muhurat trading session. However, you can view these credits in your ledger.

Key Strategies for Muhurat Trading

While Muhurat Trading is a symbolic event, smart investors often employ strategic decisions to make the most of this session. Since the market sentiment is largely positive, it’s important to approach this session with a clear plan, especially considering the short time frame.

Strategies to consider:

• Focus on blue-chip stocks: Blue-chip companies tend to perform well in sentiment-driven markets, and they are considered safer bets during short sessions.

• Avoid speculative trades: Due to the brief nature of the session, it's best to avoid high-risk speculative trades. Opt for stocks with solid fundamentals instead.

• Look for long-term investment opportunities: Many investors use this time to invest in stocks they plan to hold for the long term, as they believe starting their portfolio during this auspicious time brings good luck.

• Analyse market trends in the days leading up to Diwali: Observing the market trends before the Muhurat session can help identify patterns and inform your strategy.

How to Get Started with Muhurat Trading on m.Stock

Getting started with Muhurat Trading on m.Stock is simple and seamless. m.Stock provides a user-friendly platform that allows traders to easily participate in this special session.

Strategies to consider:

1. Open a trading account on m.Stock: If you don’t already have an account, you can quickly set one up online through m.Stock’s website or mobile app.

2. Ensure your account is funded: Make sure your trading account has sufficient funds before the session begins, as the Muhurat Trading time is limited.

3. Plan your trades in advance: Review your portfolio and decide on the stocks you want to buy or sell during the session. Muhurat Trading timing is short, so having a pre-set strategy can help.

4. Stay updated on the timing: Keep an eye on notifications from m.Stock or the stock exchanges for the exact timing of the session.

5. Execute your trades: Once the session begins, you can start trading through m.Stock’s mobile app or web platform, which offers real-time updates and an intuitive interface

Participating in Muhurat Trading on m.Stock ensures that you can take part in this auspicious session with ease and efficiency