What is Muhurat Trading?

In the world of the stock market, timing is everything. On Diwali, knowing the correct Muhurat trading time holds the same utmost importance. This Diwali, Muhurat trading will happen on November 1, 2024 according to the Hindu Calendar year, Samvat 2081.

The word Muhurat is derived from “muhur” in Hindi, which means an auspicious moment. This trading strategy will help you overcome market volatility risks when done correctly. Learn more about this unique aspect of Muhurat trading in this blog post and find all the key details about Muhurat trading time.

Stock Market Diwali Muhurat Trading Time

On 2024 Diwali, Muhurat trading time will start from 6:00 PM and end at 7:00 PM. Otherwise, the stock market will remain closed on Diwali: November 1, 2024 on Friday. There is a 60-minute special window and trades executed on that day will also be settled on the same day. Before 6:00 PM, there is going to be a 15-minute pre-open session, which will start from 5:45 PM and end at 6:00 PM. You can modify your trades from 6:00 PM to 7:30 PM. The market closing session timings on Muhurat trading will be from 7:10 PM to 7:20 PM.

Muhurat trading happens in almost all market segments such as equity, commodity, currency derivatives, equity F&O, and securities lending & borrowing (SLB).

Here are the details of the Muhurat trading time for November 1, 2024:

Muhurat Trading Sessions	Start Time	End Time
Pre-Open Market	5:45 PM	6:00 PM
Normal Market Trading Timing	6:00 PM	7:00 PM
Block Deal Session	5:30 PM	5:45 PM
Closing Session	7:10 PM	7:20 PM
Trade Modification Time	6:00 PM	7:30 PM
Special Pre-open Session (For IPO and re-listed stocks)	5:45 PM	6:30 PM
Normal market open time (For stocks traded in special pre-open session)	6:45 PM	7:00 PM
Call Auction Illiquid Session	6:05 PM	6:50 PM

Importance of Muhurat Trading

According to the famous stories, Muhurat trading was first started by King Vikramaditya with the belief that it would bring prosperity and growth to his kingdom. Officially, it started on the BSE in year 1957 for the first time and NSE adopted this approach in 1992.

The main reason why it is gaining popularity is that the concepts explained in it are closely related to Vaastu Shastra.

Trading is customarily done during the Muhurat as a kind of worship for the Hindu goddess of wealth, Lakshmi. Trading on this day—the start of the Hindu fiscal year—is seen as bringing good fortune for the following year.

Also Read: What is a Trading Account?

Who can Benefit from Muhurat Trading?

Muhurat trading can benefit anyone who wants to start a new business, make a significant investment, or take any other important decision. It is also claimed to aid in lowering risks and success.

Experienced traders can use stock market Muhurat trading to take advantage of the positive energy and auspiciousness of the time slot to increase their profits. Novice traders can use Muhurat trading to learn about the market and get a feel for how trading works.

Many believe that Muhurat trading is especially beneficial for those starting a new business or undertaking a new project. If you plan to start a new business, you should consult an astrologer to find an auspicious period for Muhurat trading.

How to Make Long-term Gains in Muhurat Trading?

There are a few points that you need to consider before getting into the Muhurat trading as the time span is only 1 hour.

1. Focus on Research

It is better if you do your research in the morning or a few days back to trade correctly in the short-horizon Muhurat trading time.

Focus your research more on large-cap stocks or blue-chip stocks as they have a long history of generating stable returns and they can grow in the future as well. Study the company’s financial statements, latest profits, and cash flow. You can analyze the company’s strength in the specific industry or any other company’s expansion or investment plans.

2. Take Value Investing Style

Value investing style focuses on investing in companies that have a strong financial position and are generally considered as overvalued with the potential to reach their true valuation in the future. Focus on the valuation ratios such as PE (price-to-earnings), PB (price-to-book value), P/CF (price-to-cash flow), PEG (price/earnings to growth), etc. This will help you invest in long-term stocks and book substantial profits on the auspicious occasion of Diwali.

3. Diversify your Trading Basket

Muhurat trading time is short run but diversification is something not to forget in this as well. To minimize the overall risk, invest across stocks, commodities, currency, etc. Spreading investments across sectors and assets can help minimize the effect of one stock falling with the gains from another.

4. Focus on Current Market Mood

Muhurat trading is said to be very auspicious and many investors think it is a good time to start investing in the stock market. This can lead to a higher demand for stocks (specifically blue-chip stocks) and eventually push their price upwards. Suppose a leading financial services company has released news of a rise in AUM or a new branch opening, it can lead to positive sentiment among the investors and you can book profit in this stock.

5. Don’t Forget your Investments

Once Muhurat trading is over, you should check your investment performance on the next day when the market opens up completely. If a stock purchased in Muhurat trading is not performing well and has a negative outlook in the market, then re-consider your portfolio and make necessary adjustments.

Things to Keep in Mind Before Entering in Muhurat Trading

There are a few things that you should keep in mind before entering into Muhurat trading.

• Knowing the hazards associated with Muhurat trading is also important. This type of trading can be highly volatile, and there is a possibility of losing money. Therefore, it is essential to trade cautiously and only invest an amount that you can afford to lose.
• Consider investing in blue chip stocks. It is essential to add longevity and stability to your portfolio by selecting blue-chip stocks for the long term, even if most large-cap stocks often trade at higher values, especially now.
• For short-term or intraday trading, focus on technical charts, take quick actions and select the stocks with high liquidity and trading volume. Keep an eye on support and resistance levels to identify buying opportunities and selling points, respectively.
• Be clear with your investment objectives and risk-taking capacity. The goals could be short-term gains or long-term gains. The risk appetite could range from low, to medium to high. After investing, don’t forget to set a stop-loss target to minimize the loss.
• Lastly, it is also essential to have patience while trading. Muhurat trading can often be slow, and it may take some time to see results. Therefore, patience is essential, and not rushing into any decisions.

Conclusion

Professional opinion suggests investing in tokens, but judgments on stock market Muhurat trading can be undertaken with a long-term outlook. While Muhurat Trading seems easy to make money, some risks are involved. As said, if an offer seems too good to be true, it generally is. The same can be true for you in Muhurat Trading.

Light up your trading fortune during this Diwali and be ready for 2024 Muhurat trading time today! Open Demat Account with SMC Global Securities and elevate your trading experience like never before.

FAQs

Can we buy and sell in Muhurat Trading?

Yes, you can buy and sell stocks, commodity derivatives, currency derivatives, and equity F&Os in a 60-minute Muhurat trading time window.

What is the time of Diwali Muhurat Trading in 2024?

The Muhurat trading time 2024 on November 1 is between 6:15 PM and 7:15 PM.

Is Muhurat Trading profitable?

Muhurat trading can turn profitable if you do thorough research before investing and identify high-quality and liquid stocks.

Reference

https://nsearchives.nseindia.com/content/circulars/CMTR64628.pdf

Author: All Content is verified by SMC Global Securities.