Muhurat Trading 2024

What is Muhurat Trading?

According to the Hindu calendar, muhurat trade is a one-hour trading period that happens on Diwali evening. A "muhurat" is an auspicious period when merchants and investors buy and sell shares in the hopes of gaining wealth and good fortune for the upcoming year. Muhurat trading times are set by stock exchanges a few days before to Diwali.
Similar to regular trading sessions, muhurat trading is accessible to all traders and investors. Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) hold this special session. During this period, investors can make orders through their brokers. The market opens actively for trading in derivatives, currency derivatives, and stocks at this period. Note that dealing in commodities is permitted during muhurat trade, though.

History of Muhurat trading

You must be thinking that, Muhurat Trading was founded when? 
Stockbrokers have traditionally begun their new year on Diwali. Therefore, during Diwali, during the auspicious time known as the Muhurat, they would open fresh settlement accounts for their clients.

On Diwali, the brokerage community would also worship their books of accounts or perform Chopda Pujan. The practice of Muhurat trade was linked to several faiths.

The main one was that Gujarati merchants and investors bought shares at this time, but Marwari traders and investors sold equities during the Muhurat because they thought money shouldn't be in the house on Diwali. This isn't true in the present, even if there isn't any data to support it.

Because the season is considered auspicious, Muhurat commerce has evolved from a traditional practice to more of a symbolic one. The majority of Hindu investors do Lakshmi Pujan, or prayers to Goddess Lakshmi, and then buy shares of stable businesses that have the potential to provide significant profits over time.

Muhurat Trading Timing 2024

The two main stock markets, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), determine the Muhurat trading schedules. Muhurat trade will take place on November 1st, 2024, this year. They have also released circulars on the subject. The same time slot will be used for trading in the securities lending and borrowing segment, equity futures and options, currencies, and derivatives.

What Happens in Muhurat Trading?

The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) allow trade on Diwali for a certain period of time. The following sections usually comprise the session:

1 Block deal session: in this scenario, two parties get together to purchase or sell a share at a set price and notify the stock exchange of their agreement.

2. Pre-Open Session: During this time (about eight minutes) the stock market establishes the equilibrium price.

3. The regular market session: which lasts for an hour and is when the majority of trading occurs

4. Call Auction Session: This is the trading session for illiquid securities. If a security meets the requirements established by the exchange, it is referred to as illiquid.

5. Closing Session: during which investors and dealers can execute a market order at the closing price.

Benefits of Muhurat Trading

Engaging in muhurat trading has several advantages. First of all, it offers a ceremonial, culturally significant, and upbeat beginning to the fiscal year. Because so many traders are purchasing and increasing market volumes, this might create a favorable situation for the market. It also gives investors a chance to rebalance their portfolios and make calculated purchases to take advantage of the session's optimism and possible price moves. Additionally, it opens up the market to new investors who are motivated by the symbolic belief in wealth and good fortune.

Beliefs behind Muhurat trading

Considering that the muhurat time lasts for just one hour, the markets are notorious for being extremely volatile during this trading session. So, if you have a long-term investing goal, invest in high-quality company stocks and use extreme caution. Because most traders and investors actively purchase and sell stocks to honor the auspiciousness of the day, experienced traders gain from this.

Who Can Benefit from Muhurat Trading?

Because of the huge trading volumes during the Muhurat trading session, it is an ideal opportunity to purchase or sell equities. Additionally, the market is often positive because of the holiday mood, which emphasizes wealth and success and makes people hopeful about the stock market and the economy. Therefore, this is an excellent opportunity for traders and investors, seasoned and novice alike, to profit from the Muhurat trading session.

Diwali is seen by many who believe in fortunate planetary alignments as a time to usher in wealth 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 intend to start trading stocks, it may be wise to watch the markets during Mahurat Trading and perhaps practice on paper to get some experience. Because the trading window is only open for one hour, markets are notorious for being turbulent. Thus, it is advised that novice traders exercise caution.
Since most investors and traders would buy and/or sell stocks as a gesture to commemorate the auspiciousness of the day, seasoned day traders might profit from this session.

The gesture itself may be more important than the profit margin. Hence, seasoned day traders may generate big gains by picking positions after thorough evaluation. Due to the pandemic's effects on both companies and individual livelihoods, this year has been difficult economically.

Even if a lot of experts are expecting a successful Muhurat trading session in 2024, you would be wise to keep your enthusiasm in check and use your judgment while making trade selections.

Conclusion

Muhurat trade is more than just a transaction of money. It's a custom that makes market players' lives better. It promotes the values of success, honesty, and optimism by bringing together the worlds of money and faith. As you prepare for muhurat trading this Diwali, remember that it is a time to trade with a feeling of purpose and appreciation for a good year ahead. Happy Muhurat Trading and Diwali!

It is considered an auspicious time for stock market Diwali Muhurat Trading, where investors believe that buying shares during this period brings prosperity and good fortune. The Muhurat Trading stock session usually lasts for about an hour, offering a unique opportunity for traders to make symbolic trades while adhering to the tradition of starting the financial year on a positive note.