Akash Jha
As the Diwali festival of lights approaches in 2023, stock market fans in India are gearing up for the highly anticipated Muhurat trading session. The session will be place on November 12th this year. The trading session begins at 6:00 PM with a 15-minute pre-opening session and ends at 7:15 PM.
This article will discuss the concept of Muhurat trading, as well as the particular times for Muhurat trading in 2023 and its benefits.
The term “muhurat” means “auspicious timing” in Sanskrit. Muhurat trading is a time-honored Indian ritual in which stocks and commodities are traded during the auspicious hour of Diwali. This custom is based on the notion that completing financial transactions during this auspicious time will bring good fortune and wealth in the future year. Muhurat trading allows dealers and investors to combine their financial activity with the cultural and spiritual festivals of Diwali.
Muhurat Trading Time
Muhurat trading is slated for Sunday, November 12, 2023, coinciding with the Diwali festival. The stock markets will announce the exact hours for the Muhurat trading session closer to the date. Traditionally, the practice takes place in the evening and lasts around one hour. The trading session is often divided into many phases:
1. Block Deal Session (5:45 PM to 6:00 PM): In this meeting, buyers and sellers agree on a price for a certain number of shares and then notify the stock exchanges so the transaction may be finalized.
2. Pre-Open Session (6:00 PM to 6:15 PM): The stock market’s equilibrium price is established during this brief session that lasts around 15 minutes.
3. Muhurat Trading Session (6:15 PM to 7:15 PM): During the main trading day, buyers can purchase shares from numerous companies.
4. Call Auction Session (6:20 PM to 7:05 PM): This session involves trading illiquid securities that meet specified conditions set by stock exchanges.
5. Closing Session (7:15 PM to 7:25 PM): The final stage of Muhurat trading, during which investors can place orders at the closing price.
History of Muhurat Trading
Muhurat can be traced back to ancient trading groups in India. On Diwali, traders would perform puja (worship) of their account books and ledgers, a practice thought to bring wealth and good fortune. This tradition evolved over time into the present practice of Muhurat trading in financial markets.
Muhurat trade has a six-decade history. It first appeared on the Bombay Stock Exchange (BSE) in 1957 and was later adopted by the National Stock Exchange (NSE) in 1992.
During this auspicious time, many Hindu investors do Lakshmi Pujan, or offer prayers to Goddess Lakshmi before making stock transactions. Although Muhurat trading does not guarantee profits, it is thought to positively influence one’s fortune for the future year. Over time, the BSE Sensex has consistently given good outcomes on this auspicious day, creating hope among participants.
Benefits of Muhurat Trading
1. Favourable Start: Muhurat trading is thought to usher in luck and financial success. It’s often seen as an opportune moment for fresh investments or decisions.
2. Investor Sentiment Influence: The optimistic atmosphere that prevails in Muhurat trading frequently establishes the outlook for the upcoming year, potentially elevating investor self-assurance.
3. Reduced Market Fluctuations: Thanks to its shorter trading hours and decreased trading activity, Muhurat trading typically experiences reduced volatility, establishing a safer trading environment.
Also read :- Top Stock Picks: Diwali Muhurat Trading 2023
Key Points to remember before trading/investing during Muhurat:
- Informed Day Trading: Keep a vigilant eye on support and resistance levels to make informed decisions.
- Position Commitment: It’s important to note that open positions at the session’s close become binding commitments.
- Fundamental Insights: Understand a company’s fundamentals before committing to investment.
- Exercise Prudence: Exercise caution when encountering unsolicited advice from various sources.
- No Assured Returns: Always keep in mind that investments made during this session do not guarantee returns.
Muhurat trading is more than just a business transaction; it is a cultural and spiritual practice that brings together the worlds of business and religion. Traders that take part in Muhurat transactions do so in the hopes of making a profit while also embracing the spirit of optimism and good fortune that this momentous occasion represents. Make the most of this unique trading session by carefully planning your moves, keeping yourself well-informed, and keeping your emotions in check. Financial success be granted to
