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Diwali Muhurat Trading 2024 : Timing, Tips, and Strategy for a Successful Start

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Published Date: 24 Sep 2024Updated Date: 27 Dec 20246 mins readBy MOFSL

Diwali is the most auspicious festival celebrated in every state of India. It holds immense cultural and financial significance in India. So, to mark the cultural significance of the day, Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE ) conduct a symbolic one-hour trading session on this day, which is called .

 

It is a special one-hour trading session conducted on Diwali, to mark the beginning of a new financial year according to the Hindu calendar i.e., the Vikram Samvat.

 

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In 2024, Muhurat trading is scheduled for November 1, 2024. The pre-open session will run from 5:45 PM to 6:00 PM, followed by a continuous trading session from 6:00 PM to 7:00 PM.

 

Investors believe that trading during this "muhurat" or auspicious hour brings blessings of prosperity throughout the year. As a result, despite the regular markets being closed for the festival, stock exchanges open briefly to allow this tradition to continue.

 

During the Muhurat trading session, various market segments will be open for investment. You can trade in:

  • Equities
  • Equity Futures & Options
  • Commodity Derivatives
  • Currency Derivatives
  • Securities Lending & Borrowing (SLB)

 

Commodities trading is not permitted during this session. Market analysts expect high participation, given the belief that investments made during this time will bring financial gains throughout the year.

 

The focus during this session is on building long-term investments that will have a  lasting spirit in the stock market throughout the year. Rather than seeking quick profits, Muhurat Trading is done to invite prosperity and success.

 

Many Investors engage in thorough research before the session and make well-informed decisions for future financial growth. This event sees a good volume because traders from diverse backgrounds come together to honour the tradition and seize the opportunities it presents.

 

The essence of Muhurat Trading lies in the balance between tradition and strategy, as participants align their trading with the positive energy of Diwali.

 

Historically, Muhurat trading has brought positive market sentiment. In both 2021 and 2022, markets closed in the green during the session, where Sensex and Nifty gained 0.88% in 2022 and 0.49% in 2021. Though market volatility is common during these short sessions, the overall trend has often been positive.

 

Significance of Samvat 2081

 

Samvat 2081, which begins on Diwali 2024, marks the new year in the Vikram

 

Samvat calendar. This period is believed to be particularly auspicious for new beginnings in investments.

 

Investors focus on equities for long-term wealth generation and take advantage of the positive market sentiment to achieve financial goals.

 

The outlook for Samvat 2081 is optimistic as market momentum is expected to remain bullish. Investors are advised to diversify their portfolios according to their risk appetite and long-term financial goals.

 

Advantages of Muhurat Trading

 

1. Muhurat trading is considered a lucky time to begin new investments. Many investors believe that it brings prosperity and good fortune.

 

2. The optimism surrounding Muhurat trading often sets a hopeful tone for the upcoming year.​​​​​​​

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3. With fewer trading hours and lighter volumes, Muhurat trading sessions experience less volatility and provide a relatively stable environment for transactions.

 

Tips for Successful Muhurat Trading

 

1. Plan your trades and investments ahead of time. It’s better to understand your financial objectives and assess your risk tolerance before making an investment.

 

2. Monitor market trends and news in the days leading up to Muhurat trading to make well-informed decisions.​​​​​​​

 

3. Avoid letting emotions dictate your trades by sticking to your strategy. Try to keep fear or greed from influencing your choices.

 

4. Reduce risk by spreading your investments across different sectors and stocks.

 

5. Use stop-loss orders to manage potential risks and prevent significant losses.

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6. Take advantage of trading platforms and tools to execute your orders swiftly and efficiently.

 

Conclusion

 

Muhurat trading is not only a tradition but also a time to make strategic investment decisions.

 

The session promotes unity among traders and investors while offering the chance for financial growth.

 

However, while participating in this festive trading, investors should exercise caution, maintain a well-thought-out strategy, and align their trades with long-term financial objectives.

 

So, mark your calendars for November 1, 2024, and take advantage of the auspicious Muhurat trading hour to start your financial year on a prosperous note.

 

Happy investing and wishing you a bright and prosperous Diwali 2024.

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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