Muhurat Trading Time 2024: Everything You Need to Know

Muhurat is a special tradition observed during Diwali, which is also called the Festival of Lights. Millions of people celebrate Diwali as it marks the victory of light over darkness. Like any other festival, Diwali comes with various beliefs. Among them, traders believe that buying stocks during this time will bring prosperity and success. So, a specific timing is set out for Muhurat trading on Diwali.

In this article, we will tell the exact Muhurat trading time for NSE and BSE. You will also understand what Muhurat trading truly is and why it's an integral part of Diwali. By the end, you'll know everything you need to make the most of the Muhurat trading 2024.

What is Muhurat Trading?

Muhurat Trading is a stock market session held on Diwali. The term "Muhurat" means "auspicious time" in Sanskrit, when people believe that the planetary alignment will bring good fortune. 

Each year, on Diwali, the stock market is usually closed, but the NSE and BSE set aside an hour for this trading session, usually in the evening. During Muhurat trading, traders buy and sell stocks as a symbolic gesture to invite wealth and prosperity for their financial endeavors. This tradition is a combination of cultural significance and financial opportunity, and it is a unique event in the Indian stock market.

History of Muhurat Trading

The Muhurat trading tradition started more than sixty years ago at the Bombay Stock Exchange (BSE) in 1957. The National Stock Exchange (NSE), however, joined in 1992. This tradition is to celebrate Diwali, which marks the new year for many communities in India. 

During Diwali, traders perform 'Lakshmi Puja' and 'Chopda Puja,' as they place a coin on account books, which symbolizes wealth. The hope of this ritual is to bring success and prosperity throughout the year.

How Does Muhurat Trading Work?

The market is usually closed on Diwali but then opens for just one hour for investors to participate in Muhurat trading. The session follows a specific structure and here's a breakdown of how it works:

• Block deal session: Before the market opens to retail investors, large block trades are executed at negotiated prices for 15 minutes. These deals are pre-arranged between two parties.

• Pre-open session: This is a 15-minute session where traders enter orders without executing trades. It helps determine the market opening price.

• Normal market session: The main event, a one-hour session, is when continuous trading happens. You can buy or sell stocks just like during regular market hours.

• Call auction session: This is a 5 to 10-minute phase where you trade illiquid securities. Prices are set based on the overall demand and supply.

• Closing session: In this final 15-minute window, you can't place new orders but can square off your existing positions at the closing price.

Muhurat Trading Time 2024

In 2024, Muhurat trading is scheduled for November 1st. The pre-open session will run from 6:00 PM to 6:08 PM, followed by the main trading session from 6:15 PM to 7:15 PM on both the NSE and BSE. Here is the detailed overview of Muhurat Trading timings:

In addition to Muhurat trading time, if you want to stay updated on market holidays, take a look at our Share Market Holidays Calendar for 2024

What Can You Trade During Muhurat Trading?

In Muhurat Trading 2024, you can trade equities, derivatives, commodities, and currency derivatives on NSE and BSE. Here, the same rules as regular sessions apply in this trading period. It promotes unity among traders and celebrates the festival. Despite the festive nature and beliefs, you must be cautious and make informed decisions while trading.

Who Can Trade in Muhurat Trading?

Anyone who has a trading account can participate in Muhurat trading, be it a retail or institutional investor. The session is an excellent opportunity for all, whether you're new to trading or an experienced investor. Trading volumes are high during this one hour, and the market often trends bullish because of the festive optimism. 

If you’re new, try to observe or paper trade so you can get familiar with the process. As an experienced trader, you can leverage the session for potential profits. However, remember to make decisions only after you have carefully analyzed them, as the focus is more on the symbolic gesture than the immediate gains.

Key Considerations for Muhurat Trading 2024

Below are some things you have to take note of before you enter the stock market in Diwali’s Muhurat trading 2024:

• Watch stock market trends: Muhurat trading can be volatile. Keep an eye on resistance and support levels because these will guide your decisions.

• Stick to fundamentals: Ensure that any stocks you buy align with solid company fundamentals and your investment plan.

• Monitor trading volumes: Go for stocks with good trading volumes so you can navigate the one-hour session effectively.

• Prepare for volatility: Be aware that the market can be unpredictable during this time, so set clear entry and exit points. To manage this better, use stop-loss orders. If you're unfamiliar with it, check out our blog on "Types of Orders in Stock Market".

• Avoid rumors: Rumors can fly in and out during the festive period excitement. Base your trades on reliable information and fundamentals.

• Plan for settlements: All positions will settle at the end of the session. Be prepared for any settlement obligations.

• Invest wisely: Remember that Muhurat trading doesn’t guarantee future returns. It is a belief, so your focus should be on long-term investment strategies.

Advantages of Muhurat Trading

Muhurat trading comes with several benefits:

• Diverse opportunities: During this period, a lot of new financial products will be launched. This will give you a chance to diversify your investments.

• Auspicious start: People believe it sets a positive tone for future financial decisions. That is, it helps boost your trading mindset.

• Special research reports: Before the session begins, financial analysts always come out with special reports, offering valuable insights into the stock market.

• High liquidity: Since there will be many participants, the market usually has high liquidity, so this makes it easier to trade at favorable prices. 

• Psychological boost: The session blends spirituality with finance. It encourages ethical and mindful trading for long-term success.

Is Muhurat Trading Profitable?

Muhurat trading can be profitable, but the profit does not just come because it is Diwali. Your profitability depends on the strategy you use. While the market is often bullish due to festive optimism, there is also a possibility for short-term gains. However, long-term profitability relies on if you are choosing solid stocks with good fundamentals. It's crucial to trade wisely and not rely solely on the symbolism of the session.

Conclusion

Muhurat Trading is an excellent opportunity to start the financial year on a positive note. It combines tradition with strategic investing. This session comes with benefits like high liquidity and quality market insights. But then, to make the most of it, you have to trade wisely and stay informed.

To make the most of Muhurat Trading, open a demat account with Rupeezy. It’s quick and easy to get started, and our platform ensures a smooth, cost-effective trading experience. Sign up today and get ready to make the most of this special trading session!