Muhurat Trading, a cherished tradition in the Indian stock market, takes place on Diwali, the festival of lights. This special trading session, held for a limited duration on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), symbolizes new beginnings (Samvat) at the start of new Hindu Calendar Year. As investors and traders come together to participate in this unique event, the atmosphere is filled with renewed optimism and a sense of prosperity. It serves as a reminder of the enduring spirit of the market and the potential for growth and success in the year ahead.
Let’s take a look at the Muhurat trading timings for 2023 in Indian stock exchanges.
What is Muhurat Trading and why is it important?
Muhurat Trading, an important tradition in Indian culture, is a special trading hour that takes place on the auspicious occasion of Diwali Lakshmi Pujan. It marks the beginning of the new Samvat, the start of the new Hindu Calendar Year. During this hour, traders and investors engage in token transactions, symbolizing the prosperous start of the financial year.
This tradition originated on the Bombay Stock Exchange (BSE) in 1957 and later started on the National Stock Exchange (NSE) in 1992. It holds great significance for market participants, embodying the belief in starting the year on an auspicious note.
What are the timings of Muhurat Trading 2023 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 12th November 2023 and the timings for the same are as below
The trading period for Muhurat Trading will begin at 6.15 PM and will continue for an hour. The trading schedule on NSE and BSE is:
|Event||Session Time on Nov 12th, 2023|
|Pre-opening Session||6.00 pm – 6.08 pm|
|Muhurat Trading (Equity + F&O)||6:15 pm – 7:15 pm|
|Post Closing session||7.30 pm – 7.38 pm|
|Market close||7.40 pm|
What are the factors to look out for during Muhurat Trading?
During Muhurat Trading, it is important to be cautious due to the volatility of the markets. The markets tend to be bullish during this time, so it is advisable to trade in stocks that have high volume and momentum. However, one should not ignore the basics of trading and investing. It is essential to consider factors such as:
- Stick to the usual rules of trading and investing during the Muhurat Trading Hour.
- Explore opportunities in the commodities market, particularly gold, as demand for the precious metal is high during the festive season.
- Seek assistance from professional brokers and analysts, especially for novice investors and traders.
- Focus on the fundamentals of the company and price trends that support those fundamentals. Avoid taking positions solely based on market buzz.
- Given the limited duration of the trading session, prioritize momentum-backed stocks to maximize short-term gains.
By keeping these factors in mind and exercising caution, investors and traders can make informed decisions during Muhurat Trading.
Based on historical data from the past decade, it has been observed that Muhurat Trading day has been favorable in 7 out of 10 years. Additionally, the post-Diwali market tends to be bullish, presenting short-term investment prospects for cautious investors. For those considering starting their stock market investment journey, this period is considered highly auspicious.