Samvat 2076: Muhurat trading explained

The “muhurat” trading session will be conducted for 60 minutes on 27 Oct 2019, on leading bourses NSE and BSE, to pay obeisance to Lakshmi, the Hindu goddess of wealth and prosperity. It would also mark the New Year for traders as per the Hindu calendar, or Samwat 2076. Muhurat Trading session: Vows Traders should make to avoid loss

What is Muhurat Trading:

Muhurat trading is the auspicious stock trading practice for an hour on Diwali (Deepawali) is done traditionally to celebrate New Year. It is a symbolic ritual which has been performed for years. As Diwali also marks the beginning of the New Year, it is believed that muhurat trading on this day brings in wealth and prosperity throughout the year.
It is believed that “Muhurat’ is an auspicious time according to the Hindu calendar where the planets align themselves in such a way that the task you perform during this time duration, becomes fruitful and without the influences of evil forces. While getting married on a specific Muhurat is common, so is trading in the stock markets during the Diwali day at a specific Muhurat time.

Why Muhurat Trading:

It’s a tradition to trade during the Muhurat, as worship towards the Hindu Goddess of wealth. Trading on this day, which is also the day when the Hindu financial years begins and is considered to bring blessing for the year ahead. Also, the Gujarathi community begins there new year a day after Laxmi Puja (Muhurat Trading Day).

Timing for Muhurat trading

The session will begin with a pre-opening session between 6 pm and 6:08 pm. This will be followed by the opening bell ceremony that will begin at 6.15 pm, followed by trading that will continue for an hour up to 7.15 pm.
Diwali Muhurat trading with regard to equity derivatives segment (F&O) and commodity derivatives, trading on both BSE and NSE will be facilitated for an hour between 6:15 pm and 7:15 pm which will be followed by a set up cut off time for determining position limit / collateral value up until 7:30 pm.

How much is traded:

Trades made on this day are more for traditional, religious and sentimental reasons, Brokers and investors will make token investments and usually hold the stock for a year or so. So also book intra-day profits.

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