Diwali Muhurat Trading 2024: Session Date, Timing & Significance

Every year, Indians across the world celebrate Diwali, the "Festival of Lights" during the new moon (the night of Amavasya) in the Hindu month of Kartik. For investors and traders, this annual festivity also brings a unique opportunity for Muhurat Trading, an auspicious trading session held during Diwali. This annual event has roots in Indian customs and is a revered time when many stock market participants make fresh investments in the hopes of ushering in wealth, prosperity, and success for the upcoming financial year.

In this comprehensive guide, we will cover everything about Diwali Muhurat Trading 2024—from its date and timings to its significance, the historical roots of this tradition, and tips on how to make the most of this session.

What is Muhurat Trading? The Significance of Diwali in the Indian Market

Diwali is an auspicious occasion, and it holds special significance in the Hindu calendar, where it represents renewal, prosperity, and fresh beginnings. Muhurat Trading is a unique session in the Indian stock markets where the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) open for a brief one-hour trading period on Diwali evening. The term "Muhurat" signifies an "auspicious time" that is deemed astrologically favorable for new beginnings.
For generations, Indian traders and investors have participated in Muhurat Trading on Diwali, motivated by a cultural belief that activities performed during this time lead to wealth and prosperity. Stock exchanges formally introduced this session to give traders and investors a designated period for honoring this tradition.

Diwali Muhurat Trading 2024: Date and Timings

For 2024, Diwali Muhurat Trading will be held on Friday, November 1, 2024 in the evening hours, from 6:00 PM to 7:00 PM (IST). 

Additional Details of Muhurat Trading 

Block Deal Session: 5:30 p.m. to 5:45 p.m.

Call Auction Illiquid Session:  6:05 p.m. to 6:50 p.m.

Trade Modification Cut-off Time: 6:00 p.m. to 7:30 p.m.

For 2024, Diwali Muhurat Trading will be held on Friday, November 1, 2024 in the evening hours, from 6:00 PM to 7:00 PM (IST). 

Last Year's Muhurat Trading Stock Performance

History of Muhurat Trading

The practice of Muhurat Trading has deep historical roots. Traditionally, Indian stockbrokers would start their new financial year from Diwali, opening new settlement accounts on this day. They would engage in Chopda Pujan, a ritual to worship their account books, honoring Goddess Lakshmi, the deity of wealth and prosperity. In earlier times, Marwari and Gujarati traders, prominent communities in Indian finance, adhered to specific beliefs, such as selling stocks during Muhurat to keep cash outflows, or purchasing to invite wealth in.

In the present day, Muhurat Trading has become more symbolic than religious. Investors see it as a time to begin their financial year positively, making token investments as a gesture of optimism. Many investors perform Lakshmi Puja at home or in offices before purchasing shares of robust companies for long-term gains.

What Happens in Muhurat Trading?

During the Muhurat Trading session, both BSE and NSE operate under a modified schedule to facilitate this special trading period. The one-hour session is structured as follows:

Pre-Open Session: Investors and traders place their orders, creating an equilibrium price for the session.
Muhurat Trading Session: The main one-hour session where the majority of trades are conducted.

Call Auction Session: For less liquid securities, allowing traders to place buy/sell orders at the equilibrium price.

Closing Session: Traders place orders based on the closing price to settle final transactions.
Each segment of the Muhurat session is designed to manage the high volumes and volatility that come with this unique trading time, ensuring the market remains orderly and efficient.

Who Can Benefit from Muhurat Trading?

Muhurat Trading is suitable for all investors, from beginners to seasoned traders. Here’s how different types of investors can approach the session:

New Investors: Diwali Muhurat Trading is a great time to enter the market. It’s considered favorable for wealth creation and long-term investments, providing new investors an auspicious beginning.

Experienced Traders: Seasoned day traders and investors can capitalize on the short-term market optimism. Muhurat Trading often sees a bullish sentiment due to festive cheer and widespread participation, which can lead to profitable trades.

Long-Term Investors: Many long-term investors use Muhurat Trading to reaffirm their portfolio, buying quality stocks in line with their investment strategies.

Tips to Make the Most of Muhurat Trading 2024

To maximize your investments during the Muhurat Trading session, keep the following tips in mind:

Define Your Objective: Decide if you’re trading for symbolic value, long-term investment, or short-term gains. Each approach requires a unique strategy.

Research Quality Stocks: Opt for fundamentally strong stocks with good growth potential. Avoid speculative stocks, as the session is short and volatile.

Follow Market Trends: Keep an eye on market trends leading up to Diwali. Stocks in sectors like banking, IT, and consumer goods often perform well during Muhurat Trading.

Manage Risks: Muhurat Trading is brief and may see sudden price fluctuations. Set stop-loss orders to protect yourself from significant losses.

Avoid Emotional Trading: The festive atmosphere can tempt investors into impulsive buying. Stick to your investment plan and don’t get swayed by market euphoria.

Sectors to Consider for Muhurat Trading 2024

Certain sectors tend to attract more attention during Muhurat Trading due to seasonal trends, economic factors, and long-term potential. Consider focusing on:

Banking and Financial Services: The banking sector often shows robust performance and long-term growth potential.

Information Technology (IT): IT stocks are favored for their global demand and promising growth.

Consumer Goods: Diwali is a time of high consumer spending, benefiting the retail and consumer goods sectors.

Renewable Energy: With a growing focus on sustainability, renewable energy companies offer promising growth opportunities.

Things to Remember for Diwali Muhurat Trading

While Muhurat Trading is a cherished event, investors should approach it with caution. Here’s a checklist to keep in mind before participating:

Stay Cautious of Market Volatility: Markets can experience sharp price movements during the session due to high trading volumes.

Ensure Settlement of Trades: All positions will result in settlement obligations, so plan your trades carefully.

Stick to Fundamentals: Festive excitement often leads to rumors. Stick with quality stocks that align with your long-term investment goals.

Watch Resistance and Support Levels: Experienced traders should observe these levels to make well-informed trading decisions in this volatile environment.

Common Myths and Realities of Muhurat Trading

Many myths surround Muhurat Trading due to its auspicious nature. Here’s a breakdown of popular beliefs versus realities:

Myth: Muhurat Trading guarantees profits due to its auspicious timing.
Reality: While considered favorable, profits depend on market conditions and stock fundamentals, not solely on timing.

Myth: Investing in any stock during Muhurat Trading is lucky.
Reality: It’s essential to choose stocks with strong financial health, as only sound investments yield long-term returns.

Diwali Muhurat Trading 2024: Key Takeaways

•  Date: Friday, November 1, 2024
•  Timings: 6:00 PM to 7:00 PM (IST)
•   Auspicious Significance: Marked as a favorable time for financial beginnings, reflecting a cultural belief in prosperity and success.

Diwali Muhurat Trading is more than just a trading session—it’s a blend of tradition, cultural values, and financial aspiration. For new and experienced investors alike, it’s an opportunity to usher in prosperity with carefully planned investments. While the atmosphere of Muhurat Trading is rooted in optimism, participants should approach it with diligence, focusing on sound investment choices and long-term goals.

Whether you’re investing symbolically or strategically, Diwali Muhurat Trading 2024 offers a memorable way to start the year on a positive note. 

Wishing you a prosperous Diwali and successful investments!

Also read about our Best Muhurat Trading Stocks to Buy this Diwali 2024