The festival of Diwali, celebrated with great enthusiasm and zeal in India, is not just about lighting lamps, exchanging gifts, and relishing delicious sweets.
It is also when investors eagerly await Muhurat Trading to make optimistic investments and kickstart their financial journey positively.
In this blog, we will delve into the world of Muhurat Trading, exploring its history, significance, and how to make the most of it in 2023.
We will also share some top Diwali Picks for Muhurat Trading, allowing you to make informed investment decisions.
What is Muhurat Trading?
Muhurat Trading, or 'Mahurat Trading,' is a traditional ritual in Indian stock markets. It refers to the special one-hour trading session conducted on Diwali.
This session is considered highly auspicious by traders and investors, as it is believed to bring prosperity and good luck for the upcoming year.
Muhurat Trading is an age-old tradition that reflects the blend of culture and commerce in India.
History and Significance of Muhurat Trading
The roots of Muhurat Trading are traced back to ancient India when merchants performed a 'Chopda Pujan,' a ritual to bless their account books and ledgers before starting the new financial year on Diwali.
Over time, this practice evolved into Muhurat Trading.
The significance of Muhurat Trading lies in its association with the Hindu calendar year, known as 'Samvat’.
Each Samvat has a number associated with it, and the trading session on Diwali marks the beginning of a new Samvat. For example, Diwali in 2023 will mark the start of 'Samvat 2080'.
Investors believe the stocks they buy during this special trading session will bring them wealth and prosperity throughout the Samvat.
How does Muhurat Trading work?
Muhurat Trading Time is a one-hour session in the evening on Diwali day. The timing of this session is determined based on the auspicious astrological calculations.
While the specific timing may vary yearly, it typically falls after the regular trading hours. Traders and investors eagerly anticipate this session, as it is an excellent opportunity to make well-thought-out investments.
During Muhurat Trading, all major stock exchanges in India, such as the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), remain open for trading.
However, the trading volume is relatively low compared to regular sessions, as many participants are engaged in Diwali festivities. Despite the lower importance, Muhurat Trading is known for its positive sentiment, and the prices of stocks often witness upward movements.
How to Pick Stocks for Muhurat Trading?
Selecting the right stocks for Muhurat Trading is crucial to maximize your chances of success. Here are several guidelines to assist you in making well-informed decisions:
Research and Analysis:
Conduct thorough research and analysis of potential stocks. Examine the financial health, performance metrics, and future growth potential of the company. It is essential to invest fundamentally in strong companies.
Muhurat Trading is an auspicious occasion, and it is a good idea to pick stocks with a long-term perspective. Consider stocks that you believe will perform well not just for the next year but over the next several years.
Invest in a diversified portfolio by choosing stocks from various industries. It helps spread risk and ensures that you are not overly exposed to the performance of a single industry.
If you are new to investing, seek advice from financial experts or consult a certified financial planner. Their expertise can offer invaluable insights and steer you toward well-informed choices.
Set a Budget:
Determine how much you are willing to invest during Muhurat Trading and stick to your budget.
Is Intraday Trading allowed in Muhurat Trading?
Intraday trading, which involves buying and selling stocks within the same day, is generally allowed during Muhurat Trading. However, due to the shorter duration of the session and lower trading volumes, intraday trading during Muhurat Trading may carry higher risks. It is essential to have a well-thought-out strategy and be cautious when engaging in intraday trading on this auspicious day.
Is Options Trading allowed in Muhurat Trading?
Options trading, which involves trading in derivatives contracts, is usually allowed during Muhurat Trading. However, options trading can be complex and carries a higher level of risk compared to trading in equities. If you are considering options trading during Muhurat Trading, it is advisable to have a good understanding of options and the associated risks.
Date and Time of Diwali Muhurat Trading 2023
This year, Muhurat Trading is scheduled for Sunday, November 12, 2023. The session is set to commence at 6:00 PM and conclude at 7:15 PM, encompassing a 15-minute pre-market session. Unlike regular weekdays, Muhurat Trading offers a brief one-hour window of opportunity at a predetermined time.
The Muhurat Trading session is typically divided into the following segments:
Block Deal Session
During this phase, buyers and sellers come to a mutual agreement to purchase or sell a security at a fixed price, promptly notifying the relevant stock exchange.
The Pre-Open Session, which usually spans eight minutes, is pivotal in determining the equilibrium price.
Normal Market Session
The one-hour segment dedicated to the Normal Market Session operates like standard trading sessions.
Call Auction Session
This session is specifically designed for the trading of illiquid securities.
It is essential to mark your calendar and be prepared for this auspicious trading session.
Top Diwali Picks for Muhurat Trading 2023
Now, let us dive into the exciting part – the top Diwali Picks for Muhurat Trading in 2023. Remember that these picks are for information purposes only, and it is crucial to conduct your research and consult with financial experts before making any investment decisions.
|Diwali Pick Name
|Jio Financial Services Ltd.
|Archean Chemical Industries Ltd.
|Gland Pharma Ltd.
|Ashok Leyland Ltd.
|Go Fashion (India) Ltd.
|Manoj Vaibhav Gems N Jewellers Ltd.
|Nuvoco Vistas Corporation Ltd.
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Muhurat Trading during Diwali is not just a financial ritual but a cultural tradition that symbolizes hope, prosperity, and new beginnings. It provides investors with an opportunity to embark on their financial journey with positive energy and optimism.
However, it is essential to approach Muhurat Trading with caution, conduct thorough research, and seek expert guidance when making investment decisions.
In 2023, as you prepare for Diwali Muhurat Trading during Samvat 2080, consider the top Diwali Picks mentioned earlier as potential investment options. Remember that the stock market carries inherent risks, and previous performance does not guarantee future outcomes. Diversify your portfolio, stay informed about market trends, and invest with a long-term perspective to enhance your chances of success.
As you gear up for Muhurat Trading on Diwali, may your investments shine as brightly as the festival of lights, bringing prosperity and happiness to your life.
fi.money, nseindia, moneycontrol, business-standard
Disclaimer: ‘Investment in the securities market is subject to market risks; read all the related documents carefully before investing.' https://bit.ly/2RK2tzc
"Content shared is for information and education purposes only and should not be treated as investment or trading advice. Please do your own analysis or take independent professional financial advice before making any investments based on your own personal circumstances."
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