The day of Diwali is very special for the stock market. Although the market is closed on this day, the ‘Muhurat trading’ is organized for one hour during the day. In this hour, investors follow the tradition of the market by making their investment. The day is considered auspicious for trading and its history goes back almost to the beginning of the Bombay Stock Exchange.
What time is Diwali muhurat trading?
The market is closed on the day of Diwali, the ‘Muhurat trading 2021’ is organized for one hour. The trading will happen between 6.15 PM and 7.15 PM.
Diwali also marks the beginning of the new year and thus, investors remain keen to start off on a positive note. This year, Samvat 2077 is going to start with Diwali and Diwali marks the beginning of a new financial year in many parts of the country. Marking the auspicious occasion, traders of the stock market are enabled to carry out special share trading, called the Muhurat Trading. The practice first began on BSE in 1957 and on NSE in 1992.
What is Muhurat trading session? [2021]
For the year 2021, the Muhurat Trading will be conducted on the two stock exchanges on November 4. The trading will happen between 6.15 PM and 7.15 PM. The Muhurat trading time is based on an astrologically defined auspicious time of the day and will happen in the evening. On the day, the block deal session will go on for 15 minutes from 5.45 PM till 6 PM and the pre-open session will last for 8 minutes between 6 PM and 6:08 PM. All the trades executed during the special trading window will result in settlement obligations.
Dos for Muhurat Trade
During the auspicious trading window, investors can make a token purchase of an initial investment that can bring prosperity and a decent return on investment. The market is, typically, less volatile during the trading session as traders prefer to buy stocks rather than sell them off. Another important move to make for the Diwali trading session is to buy reliable and quality large-cap stocks for the long term. The Muhurat Trading time is also deemed ideal by investors for reflecting on the year gone reshuffling the portfolio based on new goals.
Don’ts for Muhurat Trading
The Muhurat trade window lasts only for an hour and thus a liquidity constraint remains. Investors are recommended to not place any large orders during the session. Traders must remain focused and get past the festive spirit and avoid splashing in the moment. The session is also known for being misleading and thus traders must avoid basing investments on rumours. Investors are recommended to focus on large-cap companies during the session to avoid losses in the volatile session.
