The Hindu festival of lights, also known as Diwali, is a very fortunate event according to their calendar. In it, morality triumphs over evil, light triumphs over darkness, and knowledge triumphs over stupidity.
Diwali is marked by a multitude of beliefs, customs, and rituals, just like any other religious occasion. One such tradition is the muhurat trade.
The article will talk about this custom today, as well as everything you need to know about Muhurat Trading time.
- Muhurat Trading: What Is It?
Let’s examine the word Muhurat first before attempting to answer the question, “What does Muhurat trading mean?” “Muhurat” refers to a fortunate moment. In Hindu tradition, the term “Muhurat” is used to describe the exact moment when the planets are in an advantageous alignment that ensures positive consequences.
On occasion, Indian merchants engage in what is called muhurat trading. On the day of Diwali, there is a one-hour window of diwali muhurat trading time that is seen lucky for stock investments. Every year, the stock market sets the timing for Muhurat trading.
Beliefs hold that traders who engage in business at this hour are more likely to make money and enjoy prosperity all year long. On the last night of Diwali, most people would choose to buy stocks as a tribute to Goddess Lakshmi. This is something that only the Indian stock markets have.
- Trading Hours for Muhurat in 2023
Here’s a brief glance at the BSE and NSE’s Muhurat trading times for 2023:
The date of Muhurat Trading is Sunday, November 12, 2023.
- Pre-Opening Meeting
6:00 p.m. to 6:08 p.m. IST
- Muhurat Commerce
IST from 6:15 p.m. to 7:15 p.m.
IST from 7:30 to 7:38
- Market Shutdown
IST 7:40 PM
Muhurat Trading’s History:
- Muhurat Trading was founded when?
Stockbrokers have traditionally begun their new year on Diwali. Therefore, during Diwali, at the auspicious period known as the Muhurat, they would establish fresh settlement accounts for their customers.
On Diwali, the brokerage community would also worship their books of accounts or conduct Chopda Pujan. The practice of Muhurat trade with stock market diwali muhurat trading time was linked to several faiths.
The most important one was that Diwali isn’t the right time to have money about the house, thus Marwari traders and investors sold their shares during the Muhurat. In contrast, Gujarati merchants and investors acquired shares at this time. In light of the available data, this cannot be true at this time.
Muhurat trade has transformed from a mere ritual to a more symbolic one due to the season’s good reputation. After praying to Goddess Lakshmi, or performing Lakshmi Pujan, most Hindu investors purchase stock in established companies with good long-term profit potential.
- What Takes Place in Trading Muhurat?
During a certain time on Diwali, traders are allowed to participate in the NSE and the BSE. The session typically consists of the following parts:
– When two parties decide to purchase or sell a share at a set price and notify the stock market of their agreement.
– When the equilibrium price is established by the stock market (typically within eight minutes)
– The hour-long period during which the majority of trade occurs
– The trading platform for illiquid securities. If a security meets the requirements established by the exchange, it is said to be illiquid.
At the closing price, traders and investors are able to place a market order.
- Who Is Muhurat Trading Beneficiary for?
It’s a great time to buy or sell stocks because of the massive trading volumes that occur during the Muhurat trading session. In addition, the Christmas season, which highlights success and riches and inspires optimism about the economy and stock market, often contributes to the market’s favorable outlook. As a result, traders and investors of all experience levels have a great chance to earn from the Muhurat trading session.
Diwali is seen by many who believe in fortunate planetary alignments as a time to usher in riches and prosperity. Therefore, Diwali can be an excellent day to start investing in stocks if you have never done so.
Seek for reputable businesses and buy stocks that are consistent with your investing strategy and have a lengthy time horizon. But, if you want to start trading stocks, it may be wise to watch the markets during Mahurat Trading and perhaps practice on paper to get some experience.
Seasoned day traders may find success during this session since most investors and traders will purchase and sell stocks to celebrate the good fortune of the day.
The gesture itself may be more important than the profit margin. Therefore, experienced day traders may profitably by entering positions only after giving them considerable thought. Due to the pandemic’s effects on both companies and individual lives, this year has been difficult economically.
Even if a lot of experts are expecting a successful Muhurat trading session in 2023, you would be well to keep your enthusiasm in check and use your judgment while making trade selections.
- Considerations Prior to Indulging in Muhurat Trading
Before you begin buying or selling stocks during the Diwali day trading period, bear the following points in mind (Muhurat Trading Timings).
The majority of traders and investors believe that now is a good time to invest.
Settlement liabilities will arise for all open positions at the conclusion of the trading session.
The date of the session was November 12, 2023.
Traders must keep a careful eye on the levels of resistance and support. There has been no discernible pattern in the markets, and they have been known to be volatile during sessions. As a result, if you as a day trader base your choices around the resistance and support levels, you will be able to make better trading selections.
Investors should adhere to a company’s fundamentals before making a long-term investment in its shares. A lot of energy and speculation permeates the session at all times. Keep your ego in check and only invest money that fits your investing style and comfort level with risk.
If you want to profit from the volatility, ensure that the stocks you choose have high trading volumes since the window for trading is only open for an hour.
Investment returns during this period are uncertain. Even if the stock does well during Diwali, its long-term success will depend on its basic principles and macroeconomic circumstances. Make prudent investment decisions