Everywhere it's discounts, shopping, lights, smiles, and so much preparation as Diwali is around the corner. It's a festive session in India, and almost everyone has started their pre-Diwali celebration. Thou traders by heart are waiting for their real celebration, Muhurat Trading.
It's not exclusive as it sounds. It's for all investors with a valid demat account.
Hold your excitement, and before jumping directly on investing, let's start with understanding "Muhurat Trading".
What is muhurat trading?
“Muhurat” is a Hindu expression of an auspicious time to start something new or good. For this period, the domestic equity markets remain open on Diwali. The leading stock exchange- BSE and National Stock Exchange (NSE) - have issued circulars for the same.
What is the history of muhurat trading?
Traders in India start their new year on Diwali. The broking community particularly completes the Chopda Pujan and worships their books of accounts on Diwali. There are several other beliefs about muhurat trading as Gujarati traders and investors buy shares during muhurat trading. Bombay Stock Exchange (BSE) initiated the ritual of muhurat trading in 1957 and National Stock Exchange (NSE) has been conducting it since 1992.
What will happen in the muhurat trading?
- Block Deal Session: Two parties (buyers and sellers) agree to buy/sell a security at a fixed price and inform the respective stock exchange.
- Pre-Open Session: Pre-open session usually lasts for eight minutes and determines the equilibrium price.
- Normal Market Session: This is the one-hour actual trading session, just like the standard market sessions.
- Call Auction Session: Primarily for illiquid securities to trade.
- Closing Session: Traders and investors can place the market order at the closing price.
Timings of muhurat trading on 2022
Muhurat trading will be on 24 October 2022, and the capital market segment will be open for trading between 6:15 pm to 7:15 pm. Blocking deal sessions will be organized for 15 minutes between 5:45 pm to 6:00 pm, whereas the pre-opening session is fixed at 6:00 pm to 6:15 pm.
Investment flows and festivals highlight their significance by providing the ideal environment for fresh competitors to enter the market with vigor. All eyes will be on market trends during the muhurat trading time, which will be particularly interesting. Since many people are calculating the new fiscal year during Diwali, businesses of all sizes are encouraged to buy and sell stock options.
Concluding the muhurat trading is a trading session for someone who believes in rituals, planetary alignments, and Hindu culture. The market is bullish on the day of muhurat trading, as people are emotion-driven rather than the number on that day.
Diwali muhurat trading sets a festive mood focused on prosperity and wealth. This Diwali invests with the alignment of your emotion and logic on muhurat trading to bring more prosperity and happiness.
Anushka Trivedi is a freelance financial content writer. She can be reached at anushkatrivedi.com