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How Muhurat Trading Works

21 Oct 2022 0 COMMENT

It is that time when you are nudged to start something new. The festive season brings auspicious moments that you hope will benefit you in the future. If you are into investing, you probably know about Muhurat Trading. During Diwali, traders and investors worship their account books and execute trades to make a new beginning. Stock exchanges open for trade in the evening for Laxmi Puja during Diwali. Goddess Laxmi is the deity for wealth and prosperity for Hindus. It is also the start of the new financial year in the Hindu calendar and is considered auspicious.  

The Best Way To Get Ready For Muhurat Trading

Don't know how to trade mahurats but want to? Use the following advice to get ready to take part in this year's mahurat trade.

Shortlist Stocks

List the shares you want to buy before the spot trading begins in the evening. Since the trading session is only an hour long, you should plan your trades. Some of you could buy stocks to hold for a long time. So, list the equities you want to trade for the fortunate Diwali hour.

Do Your Research

When you are ready and have a list of stocks, look at the technical indicators to see how the prices are trending. Based on previous data and market momentum, you can decide when it is the optimum time to trade those stocks.

Maintain Resistance

If you are a trader, you must monitor the resistance and support levels. Due to the low participation of institutional investors, trading volume is usually low. Share prices can get volatile. As a result, if you know the resistance and support levels of significant shares or indices, you can make an informed trade choice.

How Can You Benefit From Samvat Trading?

There is an air of optimism during the Muhurat Trading session. Very few 'sell' trades are executed. People tend to buy and keep fundamentally strong companies during the auspicious period. If you are a new investor or a trader, you can make a beginning to your stock market journey. It is the start of the new financial year.

Takeaway

Muhurat Trading is an excellent time to take a breather and evaluate your investment or trading strategy. If you have yet to start your stock market investment journey, that is perhaps the most auspicious time of the year. You need to approach Muhurat Trading with clarity of thought and awareness. Enjoy Diwali, and have a prosperous new year!

Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Ms. Mamta Shetty, Contact number: 022-40701022, E-mail address: complianceofficer@icicisecurities.com. Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.