On the day of Diwali (Lakshmi Pujan Day), the stock market community observes the important occasion of Muhurat Trading. This has been a tradition that has been followed for decades and is said to breathe in fresh spirits in the stock markets. Given below are more details of Muhurat trading and the timings for the same on NSE and BSE.
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What is Muhurat Trading and why is it important?
Muhurat in Indian culture is the auspicious time that is always followed while doing a ritual or at beginning of something important and auspicious. Mahurat trading in stock markets is the special trading hour on the occasion of Diwali Lakshmi Pujan. During this hour, traders and investors do token transactions to mark the beginning of the new Samvat, the start of the new Hindu Calendar Year.
This tradition began on BSE in 1957 and was initiated on NSE in 1992.
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What are the timings of Muhurat Trading 2022 on NSE & BSE?
The timings for the Muhurat Trading on the NSE and BSE are announced by the respective exchanges ahead of the trading period. The current Muhurat Trading is to be done on 24th October 2022 and the timings for the same are as below
- NSE
The trading period for Muhurat Trading will begin at 6.15 PM and will continue for an hour. The trading schedule on NSE is
| Event | Session Time |
| Pre-opening Session | 6 pm – 6.08 pm |
| Muhurat Trading Session | 6.15 pm – 7.15 pm |
| Block Deal | 5.45 pm – 6 pm |
| Call Auction Illiquid Session | 6.20 pm – 7.05 pm |
| Post Closing session | 7.25 pm – 7.35 pm |
- BSE
The Muhurat Trading session on BSE is similar ti that in NSE. The timings for Muhurat trading on BSE are
| Event | Session Time |
| Pre-opening Session | 6 pm-6.08 pm |
| Muhurat Trading Session | 6.15 pm-7.15 pm |
| Block Deal | 5.45 pm – 6 pm |
| Call Auction | – |
| Post Closing session | 7.25 pm – 7.35 pm |
What are the factors to look out for during Muhurat Trading?
During this hour, the markets are quite volatile and it is advisable to be cautious while entering new trades. The markets tend to be bullish on the occasion of Muhurat trading and post that too to a certain extent. It is ideal to trade in stocks that have high volume and momentum during the Muhurat Trading Hour while the basics of trading should not be ignored. A stock that is fundamentally strong and trending can be a safer investment and trading option in the face of such volatility.
A few other factors that need to be considered by investors and traders during the Muhurat Trading Hour are,
- Trading during the Muhurat trading Hour is as per the usual rules of trading and investing.
- Trading can be on the commodities market as well so traders and investors can also tap this opportunity to trade in gold as the demand for the yellow metal is high during the festive season.
- Due to the high volatility of the market, novice investors and traders can take the help of professional brokers and analysts to take suitable positions.
- Focus on the fundamentals of the company and the price trends supporting such fundamentals. It is easy to be swayed by the growing buzz around a particular stock but do not take positions that are not backed by thorough analysis.
- As the trading session is only for an hour, the focus should also be on the momentum-backed stocks to ensure margins for short-term gains.
Conclusion
The Indian Trading community (especially the Gujarati and Marwari Communities) eagerly awaits the Muhurat Trading Hour and consider this period to bring wealth and prosperity for them and their loved ones. The token transactions entered during this period may or may not add profits to their portfolio but surely is an exciting learning experience for the entire trading and investing community.
FAQs
A. Muhurat Trading was first started in 1957 on BSE and 1922 on NSE.
A. The duration for Muhurat Trading is an hour of trading and investing in the stock markets in the evening session.
A. The stock markets are quite volatile during the Muhurat trading hour. While trading in stocks with momentum is a good trading strategy to aim for short-term gains, the same stocks may not necessarily hold as much value post the Muhurat trading buzz. Hence, stock backed by momentum as well as strong financials should be preferred.
A. No. it is not compulsory to close all the open positions. Traders can still have open positions on delivery and derivative trades.
