Diwali is famously called the “Festival of Lights.” Diwali depicts not just lights but also a special time for investors in India. This season is reflective of hope, always something of a new beginning. Among various special and different customs marking their appearances during Diwali, Muhurat trading surfaces are an important aspect of the tradition. One-hour trading takes place above all the stock exchanges in that particular hour. In the hope of getting good luck and a prosperous fortune, a person gets his investment. Let us determine what Muhurat Trading is, why it is so important, Top Diwali Stocks and how to prepare. What type of stocks do people tend to pick within Diwali Muhurat trading times?
What is Muhurat Trading?
It takes place only on Diwali evening, and during this particular hour, even on holiday, the stock markets are open. It indeed is a lucky hour called Muhurat, and as is the general belief of people, the beginning of Diwali is the most promising start there can be. A very famous tradition exists for making new investments on this kind of occasion.
According to Hindu culture, starting anything at any auspicious time will eventually bring prosperity and good fortune. It is the reason many investors invest in this Diwali Muhurat trading business. It is not all about earning; it is about earning fresh and hopefully being positive. Muhurat trading is considered the day when a financial Hindu calendar year begins and can be very special for investors and traders.
Also read: What is Muhurat Trading?
Why is Muhurat Trading Important?
Diwali trading is a very auspicious occasion for all the investors waiting for this for Muhurat trading. It is important because of various reasons mentioned below:
- Spiritual Meaning: Diwali is the day of blessings. Such a time makes any investment enter on a good note with fresh beginnings. Most believe this helps them succeed and gain success in their investments.
- Good Feel: Diwali brings joy, and the general mood of the people appears to be at a very high level. Such optimistic investors are mainly cheerful while investing in this Diwali Muhurat trading.
- Mood Setter for the Year: The stock’s performance during the Muhurat session is partially believed to determine the market’s mood in the subsequent months. In case the stocks are performing well, then next year would receive a good mood.
How to Prepare for Muhurat Trading?
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Prepare for at least a day as it is that time when you should start since one should not take as long to get ready for muhurat trading. Here is what you need to do.
1. Gain More Knowledge
- Company Performance: This would amount to scanning and seeing where companies stand from other quadrants, including growth possibilities, the quality of their management, or any other aspect of what they are worth. So you will make more discerning choices about which of the investments you are making.
- Market Trends: One needs to have an understanding of general movements in overall markets, like globalisation issues and monetary flows that are influencing your shares.
- Technical Indicators: Understand how the stock has behaved in the past and its trends. That can guide you on what point you should buy or sell the stock.
2. Formulation of Specific Objectives towards Investment
What do you want to do before investing? Are you looking at investing for returns that might happen quickly? Or for long-run growth?
- Short-term or long-term: you may either hold onto your stocks for a short term or many years. It depends on the kind of stocks and what you would like to achieve.
- Risk tolerance: Realise how much you can take by way of risk. At times, different stocks promise tremendous returns yet are associated with much more risk, whilst others grant stable returns at much more diminished risk.
3. Identify the Right Broker
- Trading Platforms: Use a simple platform, as the session is quite short, and Muhurat trading is not to be missed. A good broker like SMC Global Securities will give smooth trading, and you can focus on your investments.
- Brokerage Fees: Compare the fees of different brokers. Lower cost means more profit if you plan many trades during the session.
4. Have a Trading Strategy
- Entry and Exit Points: Determine the prices at which you will buy and sell your stocks before you start. In this way, you avoid making hasty decisions in the one-hour session.
- Stop-Loss Orders: It is the price at which your stock sells automatically if it falls drastically. This will save you from a huge loss.
- Risk Management: Invest in both risky and safe stocks. This would enable you to get covered, yet still have an opportunity for high returns.
Top Diwali Stocks 2024: Industry and Companies to Invest in Muhurat Trading
Some stocks have been steady over the years during Diwali. Here are a few industries and companies which make it to the top diwali stocks on Muhurat trading day:
1. Banking and Finance
- HDFC Bank: The bank is known for its stable growth and is one of the top favourites among many investors.
- ICICI Bank: This is the favourite for many, as it was the most digital banking-centric for all banks.
- Kotak Mahindra Bank: The bank is known to have sound financial management.
2. Technology
- Infosys: This is a very dependable tech company that most investors feel will be around for long-term growth.
- Tata Consultancy Services (TCS): TCS is the other big tech player in the market, which also gives consistent performance.
- HCL Technologies: HCL is one of the best tech companies and provides stability with steady returns.
3. Automobiles
- Maruti Suzuki: Because the passenger vehicle market is being strangled by Maruti Suzuki, it is an excellent stock pick.
- Tata Motors: Tata has a reputation for innovation; because they have entered electric vehicles, it will be constantly on the rise.
- Bajaj Auto: Bajaj Auto is the leading automobile in the country, and two-wheelers account for large numbers in India.
4. Pharmaceuticals
- Sun Pharmaceutical Industries: The company stands as a great leader in the pharmaceutical arena with their long list of products.
- Cipla: Cipla is a leading pharmaceutical rival and is highly reckoned with.
- Dr Reddy’s Laboratories: Dr Reddy’s has gained more attention because the company has been consistent in delivering performance in health care.
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Disclaimer: All investments in the stock market involve risk. One must take time and consult a financial advisor, as SMC Global Securities experts would do, before arriving at a decision.
The Influence of Diwali on Market
The influence of Diwali does not stop with the Muhurat session. In general, consumers are likely to spend more during the Diwali season. Therefore, consumer demand will also be high during this period. It would be more specifically visible in the retail, FMCG, and automobile sectors. While people are spending money to buy things during Diwali, it would, in general, mean better profit for those sectors, and the stocks of those sectors would go up accordingly.
Diwali also witnesses positive market sentiment. In the festival season, hopes rise, which normally makes the share prices shoot up. Even during this festival, investors and traders do not sit idle, looking for a good return as they prepare for the new year.
Muhurat Trading Tips for Beginners
If you are a beginner in Diwali Muhurat trading, then the following are some easy tips for you that would allow you to take advantage of this service.
- Maintain Your Cool: Although it may be a one-hour hectic session, keep track of strategy.
- Stick to what you know best: If you are a first-time investor, investing in established companies is more secure than testing any new, insecure company.
- Simple: Short Muhurat sessions will necessitate that you better make your plan simple in the first place. Refrain from complicating matters with over-strategies.
- Do Not Overtrade: The incentive for trading in a small segment of one hour is very tempting, but all those trades carry some overhead expense. So, instead of overcrowding, make just a well-thought-of trade or two.
Conclusion: Kickstart Your Diwali Trading with SMC Global Securities
It is not only about money; it is more about starting to be hope-filled and auspicious. Muhurat Trading introduces a blend of culture and finance, allowing investors to marry an auspicious time with their investments. Even for a seasoned trader or one who is just beginning, it makes Muhurat trading a meaningful experience if done adequately to prepare with clear goals.
Invest through SMC Global Securities, and this Diwali, get the best returns from the investments you make. Having the best expertise and being customer satisfaction-oriented, SMC Global Securities will make sure you get the best of the festive season in your investments. Ignite your financial life this Diwali by making intelligent investments and having the right guidance.
Author: All Content is verified by SMC Global Securities.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account