Diwali Muhurat Trading Timing and Session 2024

Muhurat Trading Date and Time in 2024

In 2024, Muhurat trading will take place on Friday, 1st November 2024. The stock market will open for an hour for Muhurat trading on the occasion of Diwali. 

Diwali Muhurat Trading Time Explanation

Probably, the detailed timings of Muhurat Trading 2024 will be: 

What is Muhurat Trading?

The stock market is closed on the occasion of Diwali, but it opens in the evening for Muhurat trading. Muhurat trading is a special trading session that takes place in the stock market on the occasion of Diwali. As we know, Diwali is one of the most significant festivals in India, and the word "Muhurat" itself means an auspicious time in Sanskrit.

During this time, traders and investors believed that the blessings of the goddess Lakshmi, the deity of wealth and prosperity, were showered upon their financial endeavors. It is believed that conducting business during Muhurat trading can bring good fortune and success.

Muhurat Trading History and Importance

Muhurat trading dates back to the late 1950s, when it was first introduced by the Bombay Stock Exchange (BSE). The official year for Muhurat trading is 1957.

The idea was to combine the cultural and spiritual significance of Diwali with the enthusiasm of financial markets. Since then, other major Indian stock exchanges, such as the National Stock Exchange (NSE), have adopted this tradition. The NSE adopted Muhurat trading in 1992.

Since 2018, the market has been closing in the green in the Muhurat trading session. In 2019 and 2020, BSE's benchmark index gained 0.49% and 0.45% during the session, respectively. In 2021, it closed 0.49% in the green. In 2022, Sensex gained 0.88% during the session.

Let us discuss its importance. Muhurat trading is a reflection of India's rich cultural heritage and its deep-rooted belief in the importance of auspicious timings. Diwali marks the victory of light over darkness and good over evil. The Muhurat trading session aligns with the spirit of celebrating this victory in the financial world. It is more about sentiment and tradition than about market performance. It is a way for the stock exchanges to maintain their cultural ties and engage with their stakeholders, including traders, investors, and the general public.

How Does Muhurat Trading Work?

As mentioned earlier, the market remains closed on Diwali and opens for a special Muhurat trading session. The one-hour trading window is divided into multiple slots, each dedicated to a specific market segment. Let us look at different parts: Block Deal Session: It happens before the window opens for retail investors. In this part, two parties agree to buy and sell a security at a fixed price and inform the stock exchange about it.

• Pre-Open Session: In this phase, the stock exchange determines the equilibrium price.
• Normal Market Session: It is the actual one-hour session where buying and selling of stocks happens.
• Call Auction Session: In this phase, illiquid securities are traded.
• Closing Session: A phase where you can place a market order at the closing price.

We have shared the timing for all these sessions for the 2023 session at the start. Hopefully, the table will make more sense to you now.

Who Can Benefit from Muhurat Trading?

While the focus of Muhurat trading is on the cultural and sentimental aspects, various individuals and groups can benefit from or participate in this unique session. Retail investors can participate in Muhurat trading and may use this opportunity to buy or sell stocks, mutual funds, or other financial instruments.

For some retail investors, it can be a way to begin or continue their investment journey on an auspicious note. Traders can also participate in and benefit from Muhurat trading. While Muhurat trading is shorter and typically less liquid than regular sessions, traders who feel comfortable with shorter-term strategies may take advantage of price movements during this time.

Also, Muhurat trading often brings families together, with family members, including elders and children, participating in the trading session as a collective and celebratory activity. Elders can teach the next generation about trading and investing and promote financial literacy. People also buy gold during Muhurat trading.

To sum up, Muhurat trading makes it a valuable opportunity for both beginners and experienced traders. However, traders should be careful due to the short, intense trading period.

Things to Keep in Mind Before Indulging in Muhurat Trading 2023

If you are planning to participate in Muhurat Trading 2023, here are the things to take care of:

• Time: We have already covered the details, and you must make a note of it.
• Volatility: While Muhurat trading is a special and symbolic session, it comes with lower liquidity and can lead to heightened price volatility during this brief period.
• Market behavior: The market's behavior during Muhurat trading does not necessarily predict the trends for the upcoming year.
• Settlement: Please note that the positions at the session's end become commitments.
• Precaution: Traders and investors are advised to exercise caution during Muhurat trading and avoid making impulsive or emotionally driven investment decisions.
• No guarantees: Remember, investments during this session don't ensure returns.

We wish you all success in trading/investing and a happy and prosperous Diwali.

Diwali Muhurat Trading 2024 FAQs

What are the timings for Muhurat Trading 2024?

The timing for Muhurat Trading 2024 is probably between 18.15hrs and 19:15hrs. 

Is option trading allowed in Muhurat Trading?

Yes, option trading is allowed during Muhurat trading in the Indian stock market.

Can we sell stocks on Muhurat trading?

Yes, you can buy and sell stocks on Muhurat Trading.

Can we do intraday trading on Muhurat Trading?

Yes, traders can take intraday trades in the Muhurat trading session.

How to buy in Muhurat Trading?

The buying (or selling) process is the same in Muhurat trading as in any other trading day.

Is it good to buy in Muhurat trading?

Whether it's "good" to buy during Muhurat trading or not depends on your investment goals, risk tolerance, and overall investment strategy. Muhurat trading is a special and symbolic trading session conducted during Diwali, with a focus on tradition, culture, and sentiment.

Are the trading rules and regulations different for Muhurat Trading?

The trading rules and regulations for Muhurat trading in the Indian stock market are generally the same as those for regular trading sessions.

Which stock exchanges in India allow Muhurat Trading?

Both the major stock exchanges, i.e., the NSE and BSE, allow Muhurat Trading