What is a Muhurat Trading Session?
On the day of Diwali, stock exchanges allow a special one-hour trading session known as Muhurat trading. A Muhurat trading session on the day of Diwali is considered to bring prosperity and money for the rest of the year since it marks the beginning of the new year. The timing of this Muhurat trading is not fixed but changes every year. Many investors buy the stocks for the long run during Muhurat Trading since they believe it is a lucky day for them.
When Does It Take place?
Trading takes place between 6.15 PM and 7.15 PM this year on November 4. On Diwali, the stock market is closed, but ‘Muhurat trading’ is organized for one hour during the day. During this hour, investors follow the tradition of the market by buying and selling stocks.
History of Muhurat Trading
Traders consider this as a blessing from the Goddess of wealth and prosperity, Lakshmi. It was the Bombay Stock Exchange (BSE) that began Muhurat trading in 1957, which is Asia’s oldest stock exchange. In comparison, the National Stock Exchange (NSE) began conducting the same since 1992.
Lakshmi Puja At Bombay Stock Exchange(BSE)
The Bombay stock exchange or BSE, also called India’s leading exchange group, was established in 1875 in India. Equity, currencies, debt instruments, derivatives, and mutual funds are traded on the BSE in a transparent and efficient manner. On the occasion of Diwali, the Bombay Stock Exchange or BSE perform Lakshmi Puja at the Dalal Street district of Kala Ghoda in Mumbai, the financial capital of India.
Is Intraday Trading Possible During Muhurat Trading?
In consideration of the auspicious event, traders generally book their intraday profits, no matter how small. Zerodha, India’s leading trading platform, has announced that brokerage charges will be reverted since the beginning of time on all trades during the Muhurat trading session. Zero brokerage on all Intraday, F&O, and commodity trades.
How Commercially Viable Is Muhurat Trading?
Muhurat trading may result in profits for seasoned traders, and this has been observed for years in the past, but Muhurat trading also signals prosperity and wealth. The Sensex has been noted to be on the bullish side for a long time now.
Muhurat Trading Picks Suggested By Expert Traders and Investors
The Motilal Oswal Financial Services (MOFSL) has come up with suggestions for the Muhurat trading session in contact with technical and derivative terms. They are Larsen & Toubro, Trent, Bata, and SBI stocks.
These analyses were made by the MOFSL in the news report published by IANS – Indo-Asian news services a private Indian news agency
In this Muhurat trading session, HDFC Securities also recommended Bharti Airtel as a top pick, according to IANS.
