What is Muhurat Trading in India? Time, Date, Tips & Tricks

We Indians before starting or doing anything new or fresh believe a lot in Mururat. This Devanagari Hindi word Muhurat means “an auspicious moment” or “a good time to go for something new”.

Whether we buy a car, or a house, we look for the good time to buy, so that it brings prosperity to our life. As Diwali is a festival of joy, prosperity, and lights, it is also considered as the beginning of the new year (Samvat, as the Gujarati and Marwari communities say) according to the Hindu calendar.

So, what’s there for the traders and investors on the mark of every upcoming New Year? Let’s find out.

Muhurat Trading: Meaning

On the occasion of Diwali, BSE and NSE (Indian stock exchanges) conduct a special trading session for one hour. This special session for trading is called Muhurat Trading.

As mentioned above, it marks the beginning of new year and thus considered very auspicious. Like we do pooja at home and welcome Goddess Laxmi to our homes who is the symbol of wealth and prosperity, stockbrokers and businessmen worship their account books.

So, Muhurat trading is a very old ritual followed  by the trading community from past many years. Therefore, they buy shares from the long term perspective generally on the basis of strong fundamentals on this auspicious day believing that the coming year will bring wealth and prosperity.

Muhurat Trading: What is its Significance?

As the Gujarati and Marwari communities believe that Deepawali marks the beginning of the new year or Samvat, many actually close their old ledgers and start with ones to mark the beginning of the new year.

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Muhurat trading is not a new practice, instead it is more than a half century old practice which is still followed by the trading community. So definitely it is very special to them.

This symbolic and old ritual is celebrated by traders with the buying of some shares which they believe will bring prosperity and wealth to them with the blessings of Goddess Laxmi. It does not stop here only, this is considered so auspicious that many communities even believe in keeping these shares with no intention of selling and passing them to future generations. And that is the reason why they pick fundamentally strong companies with good management and great vision.

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Muhurat Trading Timings for 2020

The NSE and BSE Muhurat Trading for Diwali 2020 will be conducted on the day of Diwali itself i.e. on the 14th of November which is a Saturday. As usual the duration will be one hour only. Take a look at the schedule:

  • Block Deal: 05:45 PM to 06:00 PM
  • Pre-Opening Session: 06:00 PM to 06:08 PM
  • Trading Session: 06:15 PM to 07:15 PM
  • Call Auction: 06:20 PM to 07:05 PM
  • Post-closing Session: 07:25 PM to 07:35 PM

Hence, a one hour special trading session will be held between 6:15 PM to 7:15 PM on 14th November 2020.

Market will remain closed on the next day of Muhurat Trading Day i.e. 15th November 2020 as it is a Sunday.

Therefore, the settlement of the Muhurat day trades will happen on 16th November 2020 i.e. Monday.

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Top 10 Stocks to Buy

If you are a retail investor, here’s a list of top 10 stocks that you can look to buy from the long term point of view. The stocks listed below are few examples of attractive stocks to buy this season. Of course, it’s simply an opinion and not any kind of advice or recommendation.

Some interesting stocks to look for buying and are presented with their expected targets:

  1. Tata Consumer (Target Price- INR 558)
  2. Hindustan Unilever (Target Price- INR 2620)
  3. Hero Motocorp (Target Price- INR 3,900)
  4. ICICI Bank (Target Price- INR 475)
  5. Cholamandalam Investment & Finance (Target Price- INR 300)
  6. Havells (Target Price- INR 685)
  7. Ultratech (Target Price- INR 5600)
  8. Divi’s Laboratories (Target Price- INR 3,520)
  9. Infosys (Target Price- INR1,355)
  10. Teamlease Services (Target Price- INR2,700)

Source: Financial Express

Benefits of Muhurat Trading Session

Muhurat Trading Session can be beneficial for you whether you are a beginner or an advanced trader.

If you are a beginner, you can start your stock trading career with any small amount that you feel comfortable with. Just pick one or two by some fundamentals, price history, and trends. You can choose the sector which you are interested in so that you can continue it with confidence and scale up later as and when you gain more and more experience.

If you are a professional trader, you can play both long and short positions. If the trade gives you profit, you can book your profit on the intraday basis and if it does not give you enough profit, you can hold the shares for the long term.

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What happened in Muhurat Trading 2019?

It is a general observation that the market respects this auspicious day and remains positive, but volumes remain low.

Last year, Muhurat Trading Session was on October 27, 2019 which was a Sunday. Both Nifty 50 and Sensex indices gained roughly 0.7% and the shares like Tata Motors and ICICI Bank made the headlines. Tata Motors actually raised by whooping 16% and ICICI Bank made a new high of Rs. 473.

Muhurat Trading: Should You take part in it?

Are you still thinking to take part in Muhurat trading session? Indeed, it’s your personal choice! Over the past few years, the market momentum has proved to be on a favourable side in these stock trading sessions.

But, it definitely sounds interesting being an exclusive part of this special live trading session. It could be the perfect time to pick the stocks that you could buy on the basis of your interests. Solid research will give you confidence and the blessings of Goddess Laxmi will give you faith.

Wish you a very Happy Diwali and may you get all the wealth, joy, and prosperity along with a great and profitable trading year ahead.

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