Muhurat Trading

Here comes the festive season when people are all excited about new beginnings! Similarly is the case with stock market traders. But the question is, Can one do trading on Diwali? Are you aware of something called “Muhurat Trading”? 

What significance does it hold for investors and beginners who want to invest in the share market? 

Should you invest during the Muhurat trading hours? How can you invest during Muhurat trading hours?

There are a lot more questions than investors generally ask!

Let’s make this easier for you. 

Here is the complete detail of what Muhurat trading is, when, and how you can trade during the Muhurat hours?

What is Muhurat Trading? 

The word “MUHURAT” signifies a measurement of the unit of time as per the Hindu calendar. And similarly, this period holds special value for investors in the Stock Market during the festive season.

Diwali is around the corner and investors are super excited to make some bonus profits this year. Wondering what Muhurat Trading is?

Each year on Diwali when markets are usually closed for trading, traders and investors get some time in which they can actually place orders and earn profits. Trading during this one hour is called the Muhurat trading. 

This tradition started in 1957 by BSE and then adopted by NSE as well in the year 1992.

A specific time is defined by the stock exchanges when the market opens for all. 

Traders believe that this time brings wealth and prosperity in the coming year. The Shubh Muhurat basically starts with Lakshmi Pujan, the goddess of wealth and purity.

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Muhurat Trading Timing  

This year on the auspicious day of Diwali which is on 4th November 2021, traders will be able to trade for one hour in the evening starting from 06:15 pm to 07:15 pm. 

Trading during this muhurat trading time happens in volumes and to make it easier for you Angel One brings in the simple and seamless way for the traders who are looking forward to “Ek Nayi Shuruaat” at a Shubh Muhurat in the share market! 

If you are an investor or a trader then you must want to pick out some profitable stocks that can fill up your pockets, well in advance to not miss out on even a single profit-making minute of this golden hour.

 

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Muhurat Trading Brokerage

 Traders desperately wait for trading in this session for they follow it as a tradition and not just focus on profits, as this festival marks the beginning of “Samvat” the Hindu’s New year. 

So you must be wondering what the hype is all about? What additional benefits will it bring to you?

Muhurat trading is more about the sentiments of the traders and investors who believe in the purity of this time. The best part about this is that no extra brokerages are levied during the period. 

As you can see in the table below, Angel One is offering free delivery like any other day. Other than this, Angel One Charges for other segments is as follow:

 

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Muhurat Trading Rules  

One must be aware of the fact that this Muhurat is just for one day which is Diwali and thus one must be ready with their trading strategy or at least be clear with the type of trading they wish to execute and accordingly be prepared with their own small case. 

Generally, during this time token stocks are looked upon to make early entries and exits as these are quite volatile and best suited for the short term.

If you are yet to start this prosperous journey in the capital market, this is the right time to jump in. However, there are certain pointers to keep in mind;

• Those looking forward to a long-term investment must be clear with their fundamental analysis. 
• While the short-term traders, who buy tokens, will need to make quicker decisions with proper technical analysis.
• Since the time is limited as compared to other trading days, it is ideal to use Stop loss to minimize the risks.

For many stockbrokers, like Angel One, they provide relationship managers to assist and guide you to make remarkable Deepawali profits. 

Because choosing the right stock also matters since the duration is small, you don’t want to miss out on good opportunities and so taking the help would do no harm. 

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Can We Do Intraday in Muhurat Trading?

Now most traders might wonder if they can do intraday trading during this time.

In this holy time when traders move ahead with special prayers and beliefs, they buy tokens from family or friends, who then keep them for the long term and sometimes never sell them.

Yet there are aggressive traders who only focus on making profits during this one hour so they go long or short based on the trend and eventually exit bearing decent profits.

So clearly the answer is YES, you can do intraday in Muhurat Trading. 

Muhurat trading remarks volume trading which actually results in much volatility in either direction thus there is a good profit earning potential for day traders to reap the fruitful benefits of the same. 

Although you must be clear and confident about the stocks you pick like mentioned above. 

Some traders even buy token stocks in the name of their children hoping for a good return. On the other hand, a day trader makes an entry and since time is limited they sell, bagging some profits however small they may be. 

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Stocks for Muhurat Trading 

But with all this information how to know which stocks to invest in? Or perhaps which sectors to look upon?

Now that you are all ready to go for Muhurat Trading, it is worth giving a glance at the Banking Sector along with the automobile sector to choose stocks from.

As you can also see a few stocks recommended by Angel One below:

 

These stocks are likely to grab attention on this auspicious day and so you can book your profits before it’s too late.

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Is Muhurat Trading Profitable?

Finally, comes the million-dollar question, is Muhurat trading beneficial?

Every investor or trader is a risk-taker and during this Shubh Muhurat, when everyone is so anxious about the market, traders play in volumes and try to earn as much as possible before the session ends. 

Since the timing coincides with holy Lakshmi pooja, they enter with the sentiment of earning more and thus perform special prayers. 

Angel One’s #ShagunkeShares brings an opportunity for newbies to enter the stock market to experiment and explore the trading world. 

With the hope that the market will be bullish traders go long or short believing the same trend to continue. 

So basically, you shouldn’t miss out on opportunities like these, especially when with the blessings of Goddess Lakshmi you can boost your bank balance with the right strategy, right stocks, and right timing. 

What are you waiting for? Reap the benefit of this auspicious occasion by opening a Demat account now. Get in touch with us and we will assist you in opening a demat account online for FREE!

 

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