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Muhurat Trading 2024
Everything You Need to Know
Muhurat Trading is a special one-hour trading session held on Diwali in the Indian stock markets.
This auspicious trading window is believed to bring prosperity and good fortune to investors. This article covers all the key details about Muhurat Trading, including its history, timings, and important things to keep in mind.
To Know More…

by RA ALOK DAIYA SEBI Reg. INH000011468

What is Muhurat Trading?
Auspicious Timing
Muhurat Trading is a one-hour trading session held on Diwali, which is considered an auspicious time for investing in shares. The word 'Muhurat' means an auspicious time when planets are favorably aligned.
Market Open for Trading
Both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) allow trading during this special window.
Belief in Prosperity
According to beliefs, people trading during this one hour have a better chance of earning wealth and gaining prosperity throughout the year. Typically, this period is during the evening of Diwali and most people prefer buying stocks as a token of Goddess Lakshmi.
This is unique to the Indian stock markets only.
History of Muhurat Trading
The tradition of Muhurat Trading has evolved over time, reflecting changing beliefs and practices within the Indian stock market. This section explores the key historical milestones and the cultural context that led to the development of Muhurat Trading.
New Year's Start
Traditionally, stockbrokers began their new year on the day of Diwali. As a result, they would open new settlement accounts for their clients on Diwali during the auspicious time – the Muhurat. The broking community would also perform Chopda Pujan or worship their books of accounts on Diwali.
Symbolic Gesture
Today, Muhurat trading has become more of a symbolic gesture than a cultural one. People believe the period to be auspicious. Most Hindu investors do Lakshmi Pujan (pray to Goddess Lakshmi) and then purchase shares of strong companies that can generate good returns in the long run.
Muhurat Trading Timings
1st November 2024

1

Block Deal Session
5:30 PM to 5:45 PM

2

Pre-Open Session
5:45 PM to 6:00 PM

3

Normal Market Session
6:00 PM to 7:00 PM

4

Call Auction Illiquid Session
6:05 PM to 6:50 PM

5

Closing Session
7:10 PM to 7:20 PM
Muhurat Trading will be conducted on Friday, November 01, 2024. The main trading session will be from 6:00 PM to 7:00 PM, with other sessions scheduled before and after as shown above.
What Happens in Muhurat Trading?
On Diwali, both NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) permit trading for a limited time. Typically, the session is divided into the following parts:
  • Block Deal Session – where two parties agree to buy/sell a security at a fixed price and inform the stock exchange about it
  • Pre-Open Session – where the stock exchange determines the equilibrium price (usually around eight minutes)
  • Normal Market Session – the one-hour session where most trading takes place
  • Call Auction Session – where illiquid securities are traded. Security is termed illiquid if it satisfies the criteria set by the exchange.
  • Closing Session – where traders/investors can place a market order at the closing price
Things to Keep in Mind Before Indulging in Muhurat Trading

1

Auspicious Period
Most traders and investors consider this period to be auspicious to make investments.

2

Settlement Obligations
All open positions at the end of the trading session will result in settlement obligations.

3

Market Volatility
Traders must keep a close eye on the resistance and support levels. During Muhurat trading Sessions, it has been observed that the markets can be volatile with no specific direction.

4

Technical Analysis
Traders must ensure that they stick with the technical parameters of what a chart of a company says, before trading. The Muhurat trading session is usually filled with a lot of excitement and rumors can spread fast.
Conclusion
Cultural Beliefs
Muhurat Trading is a unique tradition in the Indian stock market that combines cultural beliefs with financial activities.
Financial Activities
While it offers an opportunity for both new and experienced investors to participate in the market during an auspicious time, it's important to remember that investing during this period does not guarantee returns.
Balanced Perspective
Muhurat Trading performance depends on technicals, fundamentals, and macroeconomics, not just the Diwali holiday. As you prepare, keep the timings, potential benefits, and precautions in mind. Approach it with a balanced perspective, combining festive spirit and investment strategy.und investment principles.
Happy Muhurat Trading and a very Happy Diwali!
PERFORMANCE OF (#DSDT)
DIWALI SE DIWALI TAK 2023-24
Recommendation Made on 12th November 2024
What is DSDT?
Abbreviated as DSDT, Diwali se Diwali Tak is a Pack of 8 Multi Cap Stocks Chosen on Technical Parameters. These stocks are specially recommended every year on the Auspicious Occasion of (Muhurat Trading) Diwali. Following the money management strategy, these are recommended with the entry and exit (target) levels and have a holding period of Up To 1 Year.