Diwali Muhurat Trading 2024: Celebrate Prosperity with Strategic Trading Insights
Diwali Muhurat Trading 2024: Date, Timings, and Stocks to Watch
As we enter the Diwali season, there is one key event traders and investors are looking forward to. It is the auspicious Muhurat Trading Session.
The event finds its place as the auspicious stock market trading, which is conducted for an hour on Diwali, by the stock market exchanges. The practice is in line with the traditions of traders who used to begin their commerce on the festival day by paying obeisance to the goddess of wealth, Lakshmi.
It also holds importance in the investing world as the session kick-starts the new Samvat each year. This is the year that starts on Diwali according to the Hindu calendar.
According to this calendar, investors believe Muhurat trading brings wealth and prosperity in the following year.
For the business community, the new financial year commences with Diwali as they popularly perform the ‘Chopda Pujan’ where old accounting books are closed and new ones open, marking the start of the new business year.
The muhurat trading this year is the beginning of Samvat 2081.
Mahurat Trading 2024 Details
The time of the muhurat trading is specified by the national stock exchanges—BSE and NSE.
This year, the muhurat trading session will be held on 1st November 2024.
The stock exchanges will conduct a special muhurat live trading session for an hour.
All trades executed in the Diwali muhurat trading session would result in settlement obligations.
Investors usually prefer buying stocks in their portfolio during this session every year and historical performance shows the session usually ending on a positive note.
Trading volumes, however, are usually low as few stocks move during the short duration.
Generally, trades executed during the muhurat trading are similar to normal trades and the exchange workings stay the same, except for their regular timings.
Factors to Consider During Muhurat Trading
When engaging in muhurat trading, several factors can influence your trading decisions and outcomes. First, consider the festive sentiment, which often leads to increased market activity and potentially higher volatility. It is important to assess the liquidity of the stocks you are interested in, as the brief trading window can affect buy and sell orders. Additionally, keep an eye on market trends and economic indicators leading up to the session, as these can impact investor behavior. The muhurat trading time is also a good opportunity to focus on long-term investment goals rather than short-term gains, leveraging the positive sentiment to make strategic portfolio adjustments.
Strategies for Muhurat Trading
Developing effective strategies for muhurat trading involves a combination of market analysis and personal financial goals. One approach is to focus on blue-chip stocks or fundamentally strong companies that can provide stable returns over time. Consider using this session to rebalance your portfolio, taking advantage of the optimistic market sentiment to enter or exit certain positions. Additionally, setting clear entry and exit points can help manage potential volatility during the session. It is also advisable to avoid making impulsive decisions based on market hype, instead relying on research and pre-defined strategies that align with your long-term objectives.
Efficient Risk Management During Muhurat Trading
Efficient risk management is crucial during muhurat trading to protect your investments and capitalise on opportunities. Start by setting a clear budget for your trades, ensuring you do not exceed your risk tolerance. Diversifying your investments can help mitigate the impact of market volatility, spreading risk across different asset classes or sectors. Additionally, use stop-loss orders to limit potential losses, and maintain a disciplined approach to trading, avoiding emotional decisions. By implementing these risk management techniques, you can navigate the unique dynamics of muhurat trading with greater confidence and security.
Muhurat Trading Stocks
On the basis of our assessment of markets, sectors and stocks, we have identified some stock ideas which are potentially expected to do well this Samvat.
Should You Review Your Trades Post Muhurat Trading?
Reviewing your trades post muhurat trading is beneficial for assessing the effectiveness of your strategies and making informed adjustments. Analysing your trades helps identify areas for improvement and reinforces successful approaches. It also allows you to reflect on market conditions and how they influenced your decisions, providing valuable insights for future trading sessions. Regular reviews ensure that your investment strategies remain aligned with your financial goals and evolving market trends.
