What is Muhurat trading?
Muhurat trading is a trading ritual in the Indian Stock market on the festive day of Diwali or Deepawali. The term ‘Muhurat’ means an auspicious time. According to the Hindus, Muhurat is a time when planets are aligned in such a way that give positive results.
It is a common belief that people trading during the Muhurat hours have a higher chance of earning money and gaining prosperity throughout the year. Therefore, more and more traders participate in this one hour of trading.
Generally, Muhurat trade is the period during the Diwali evening, and traders buy stocks as a token of Goddess Lakshmi. It is limited to the Indian Stock Market only.
Stock Market Diwali Muhurat Trading 2021
Stock market Diwali Muhurat trading time varies every year. The trading time for this year (2021) is 6.15 p.m. to 7.15 p.m.
Muhurat Trading Timings
On the day, the block deal session will continue for 15 mins from 5.45 pm till 6 pm, and the pre-open session will keep going on for 8 minutes between 6 pm and 6.08 pm.
Diwali Muhurat Trading NSE
Trading of stock on Diwali is a very old tradition (over half a century now) and is followed by the traders’ community. The Diwali Muhurat trading is assumed to be auspicious, bringing wealth and prosperity to the traders throughout the year. According to the Hindu calendar, this year would mark the arrival of Samvat 2078. Traders mostly do token trading to appease Goddess Lakshmi (Indian goddess of prosperity and wealth) for her blessings.
Muhurat Trading Tips
By carefully analyzing several trading tips & tricks, you can reassess your investment and look for several new options in which to invest so that your new year is truly a prosperous one.
- It is good for long-term investment.
- Best time for new investors to experiment.
- Profitable for intraday traders, but not always, so be careful.
- Time your investment. You should not make decisions in spur-of-the-moment. Rather, plan your strategy in advance, or it is advisable to make a token investment.
- You need to asses your portfolio before carrying out muhurat trade to get a clear picture of your goals and strategies.
- Select the stocks carefully.
- Reseacrh in advance and shortlist the stocks you want to invest in.
- Focus on portfoilio diversification by adding different asset classes to your portfolio. There is also a tradition of buying gold, so investing in digital gold is a good option during this auspicious one hour of trading.
- Study the market and all the technical indicators before investing in this one-hour muhurat trade.
Muhurat Trading Stock Picks
Stock picks for Muhurat trade 2021 are SBI, Bharti Airtel, Tata Steel, HDFC Bank, Manapurram Finance, HCL Technologies, Raymond, to name a few. You should do thorough research beforehand for maximizing profits on this auspicious one-hour trading.
Yes, we can buy as well as sell the stock during the Muhurat trade. It is the best time for investors and traders as the trading volumes are high. It is a good time to grab the benefits from the Muhurat Trade session.
Trading happens for an hour on the auspicious festival of Diwali or Deepawali. Bombay Stock Exchange (BSE) started Muhurat Trading in 1957 and, by 1992 National Stock Exchange (NSE) made it a regular ritual.