Diwali Muhurat Trading 2024

Muhurat trading is a special trading session held every year on the occasion of Diwali and investing during this time period is considered auspicious. It is believed that this day brings prosperity to share market investors. It is a pure amalgamation of cultural significance and financial market investing opportunity.

BSE and NSE allows traders or investors to make fresh investments or adjust portfolios in a one-hour trading session, typically in the evening. In 2024, Muhurat trading will take place on 1^st November 2024, from 6PM to 7PM IST.

History of Muhurat Trading

Muhurat Trading started in 1957, when BSE first introduced this concept in the market. In India, especially Gujaratis and Marwaris begin their financial year during the festival of Diwali by opening new books of accounts also called the Chopad Pujan. This practice of seeking blessings for financial prosperity has seamlessly evolved into the modern tradition of Muhurat Trading.

Importance of Muhurat Trading

Muhurat trading offers several benefits, both practical and symbolic. First and foremost, it allows investors to participate in an auspicious tradition that aligns financial decisions with cultural beliefs, seeking prosperity for the year ahead. The session typically fosters a positive market sentiment, making it an ideal time for retail investors to enter the market or strengthen their portfolios.

Symbolically, it allows investors to make long-term investments in high-quality stocks, considering them as blessings for future wealth. Additionally, participating in Muhurat trading can foster a sense of community as it unites traders, brokers, and families in a common cultural event. While the session is brief, the tradition brings a psychological advantage, encouraging disciplined and thoughtful investment planning at the start of the Hindu financial year.

Also Read: Muhurat Trading Picks 2024 : 7 Stocks to Buy this Diwali

Who Can Do Muhurat Trading?

Muhurat Trading is an open trading session where all investors can participate. Both, retail and institutional investors can easily practice trading during the decided time period. Muhurat Trading provides a great chance to invest in stocks that termed as “Muhurat Picks”  or any other stock as pwr investors’ analysis with their favourable investment amounts. 

Muhurat Trading 2024 Timings

Diwali Muhurat Trading will be held on Friday, November 1, 2024, from 6:00 PM to 7:00 PM.

• Market Pre-Open Session : 5:45 PM to 6:00 PM
• Normal market session : 6:00 PM to 7:00 PM
• Closing Session : 7:10 PM to 7:20 PM.

Segments Available for Muhurat Trading

During the Muhurat Trading session, investors can invest in the following:

• Buy & Sell Stocks in Delivery and Intraday: Investors can engage in both delivery-based and intraday stock trades during this special session.
• Futures and Options: Trading in derivative products such as futures and options is also available during the Muhurat Trading window. 

However, certain facilities are not available during the Muhurat Trading session:

• BTST (Cash): Investors cannot sell shares in delivery mode for those bought on 31^st October 2024. These shares can be sold from 4^th November 2024.
• Margin Funding (MTF): Fresh buy and selling of existing positions through MTf are restricted.
• e-ATM Sell Orders: e-ATM sell orders are not be available.

How Does Muhurat Trading Work?

Muhurat trading follows a typical market session structure but with a much shorter duration, usually lasting for an hour. Before the trading session, exchanges announce a pre-market session of about 15 minutes, followed by the main trading period, and then a post-market session.

During the pre-market session, orders are placed and matched, preparing the market for actual trading. Once the Muhurat trading session begins, investors execute buy or sell orders, just like a normal day, though the sentiment is predominantly positive. Many investors make symbolic purchases to mark the occasion.

Things to Keep in Mind Before Indulging in Muhurat Trading 2024

Before engaging in Muhurat trading in 2024, investors should keep several factors in mind to make informed decisions. First, it's important to remember that Muhurat trading is often symbolic, so avoiding impulse purchases based on the emotional appeal of the day is critical. Researching stocks in advance and preparing a well-thought-out strategy will help ensure that trades are aligned with long-term financial goals.

Another key consideration is market volatility. Since the session is brief, price fluctuations can occur rapidly, so setting realistic expectations and avoiding aggressive speculation is recommended. Liquidity can also be lower during this time, meaning that certain stocks may be harder to trade efficiently. Finally, keeping the portfolio diversified and focusing on fundamentally strong companies is always a wise approach, as this aligns with both short-term sentiment and long-term gains.

Looking Forward to Muhurat Trading 2024

Muhurat Trading is round the corner as we are approaching to November 01, and presents a unique opportunity to participate in an age-old tradition. This special trading session is more than just a financial event – it marks a symbolic beginning to the new financial year, blending heritage with modern investment practices.

By participating in Muhurat Trading, investors generally can honour tradition while making strategic investment decisions, setting a positive tone for the year ahead.