Investors are gearing up for Muhurat trading session scheduled on Thursday, November 4. On the auspicious occasion of Diwali, stock exchanges hold Muhurat trading every year. The one-hour trading session is considered auspicious by many traditional investors in India. Muhurat trading also marks the beginning of the new Samvat or Hindu accounting year. “During Muhurat trading, the trading hours are only for an hour and are generally symbolic. Over the years, Muhurat trading has resulted in market closing higher, since most investors and traders initiate a buy trade,” said Vikas Singhania, chief executive officer of TradeSmart.
What is Muhurat trading on Diwali?
In India, Diwali usually symbolises the victory of ‘good over evil’ or ‘light over darkness’. On the auspicious day of Diwali, people usually wear new clothes, exchange sweets and gifts and invest in assets, mainly gold. Apart from spiritual significance, Diwali also marks the starting of the traditional Hindu accounting year called ‘Samvat’. To commemorate the beginning of the new year, stocks exchanges hold one-hour customary trading session on Diwali, popularly known as Muhurat Trading.
What is the Time of Muhurat Trading on Diwali 2021?
Muhurat trading session will start at 6:15 pm and end at 7:15 pm on Thursday, November 4. The customary one-hour trading session will mark the beginning of Samvat 2078.
Pre Open: 6:00 pm-6:15 pm
Normal Market: 6:15 pm-7:15 pm
Closing Session: 7:25 pm -7:35 pm
F&O, Currency (CDS), MCX: 6:15 pm-7:15 pm
When was Muhurat trading started in India?
Muhurat trading has been a long-standing practice in Indian trading community. Bombay Stock Exchange or BSE has been holding Muhurat trading on Diwali since 1957. National Stock Exchange or NSE has started this special trading session in 1992.
What is so Special About Muhurat Trading?
It is believed that trading during this one hour of Muhurat trading will bring good fortune for investors for the entire next year — the new Samvat. Investors usually buy value-based stocks which can provide long-term gains during Muhurat trading. Stocks bought during this customary trading session are often considered as lucky charms for investors. Diwali is also considered to be a good day to make fresh investments or buy assets. So many young investors make their first investment in the stock market during Muhurat trading.
What are the Muhurat Trading Stocks in 2021 Diwali?
As Muhurat trading marks a beginning of a new year, it is a good time to analyse asset allocation and find out what is working and what is not, experts suggest. As the scope for profit booking is limited during one-hour trading sessions, investors may avoid day trading strategy during this special trading session. However, it can be a perfect chance for new investors, planning to get started.
“For someone who has been sitting on the sidelines and waiting for the right moment to enter the market, Muhurat day is as good a day to start as any. Since it is a new journey, there is no better time to start it but during the Muhurat hour,” Singhania added.
“Blue-chip stocks are generally bought on this day and are a save bet for new investors too looking at long term goals. However, a word of caution is necessary especially for those millennials and new entrants in the market,” he further mentioned.
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