Muhurat Trading significance, timings
Leading stock exchanges Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will conduct a one-hour special muhurat trading session on the occasion of Diwali today, on November 14. Though stock markets remain closed on Diwali, trading sessions are held for nearly an hour. According to a circular by the stock exchanges, today, the trading session is set to start at 6:15 pm and will continue till 7:15 pm.
What is muhurat trading?
Muhurat trading is a special symbolic trading session, which stock exchanges hold during Diwali. Trading during this session is believed to bring prosperity and abundance to investors throughout the year. This trading session is generally held as per the auspicious timing, commonly referred to as 'Shubh Muhurat', and so is conducted at a different time every year. However, this is not the only reason why trading sessions are held. Markets can actually close on a positive note as the muhurat trading adds to the market thrust.
Muhurat trading timings
Today, the muhurat trading will be held between 6:15 to 7:15 pm. The session also marks the beginning of a new Samvat or Samvat 2077 -- the Hindu calendar year that starts on Diwali - and it is believed that Muhurat trading brings prosperity and wealth throughout the year. The exchanges will remain closed on November 16 on the occasion of Diwali Balipratipada.
The 8-minute pre-open session, which comprises of order collection period and order matching period, will he held between 6 pm and 6:08 pm.
The block deal session timing will be from 5:45 pm to 6 pm.
Digital trading platform Upstox on its website said all Intraday positions (including Cover and Bracket Orders) will be squared off 15 minutes prior (7.00 PM) to the market closing on the Muhurat trading session. Zerodha said all MIS and CO positions will be squared off 10 minutes prior to market closing.
Commodity exchange MCX has also informed that it will hold a special Muhurat Trading on Saturday, November 14, 2020, on the occasion of Diwali (Laxmi Poojan Day). Contracts of all commodities will be available for Muhurat Trading on Saturday, November 14, 2020, the exchange said.
The special session will start from 6:00 pm – 6:14 pm while the trading session from 6:15 pm – 7:15 pm, the exchange said.
Significance of muhurat trading
During the Muhurat trading session, investors and brokers buy value-based stocks, which are good for the long term. It is believed that during the particular muhurat, planets are aligned in such a way that brings good fortune to investors throughout the Samvat. Stocks bought on this occasion are also kept as lucky charms by many investors.
Since Diwali is considered an auspicious day to begin anything new, investors also believe buying and passing shares to the next generation is auspicious.
Because of these developments, it is observed that markets typically move upwards during the muhurat trading session. The investor sentiment is positive with a majority of buying orders across segments.
Stock prices remain stable on this day as most investors prefer buying rather than selling. Investors typically engage themselves in value investing during muhurat trading.
