Only the Indian stock markets offer Diwali Muhurat Trading. Brokers used to create fresh settlement accounts for each of their clients on the day of Diwali during the Muhurat trading session. The financial market follows the same custom. Investors buy shares of reputable firms on Diwali to hold for future gains. Laxmi puja is also performed on this day. Muhurat trading urges us to concentrate on quality and invest with long-term objectives.
For many Indian households, Diwali serves as the start of the new year. The Muhurat window for Diwali indicates that trading or investing on this day will result in profitable outcomes. Therefore, the stock market opens the trading window for retail investors and stock broking firms to place their trades and make some profit, or simply invest during the favorable time, just like it would on any other weekday.
In order to honor and worship their account books, many stockbroking families, tradesmen, and mercantile communities—typically from Gujarat and Northern Maharashtra—performed the Chopda Puja. Chopda Puja was conducted with the belief that making a financial investment in a strong company would pay off.
The normal session typically lasts from 6:15 pm to 7:15 pm on the day of Muhurat trading, with block deal and pre-open sessions coming before the normal session and call auction and closing sessions coming after. BSE and NSE open trading windows for nearly two hours on this day.
Important Aspects of Muhurat Trading
The Best Day to Invest
The day of Diwali, and particularly the season of Muhurat trading, are seen as being particularly fortunate times to make financial investments. This is one of the explanations for why many traders begin the occasion with special prayers and purchase shares of the businesses they plan to invest in for the long run. To make a sensible investment, one must also anticipate the stock market’s trading activity the day before.
Good for Novice Investors
The most fortunate time for a new trader to execute their first transaction is known as the muhurat trade. With a tiny investment, one can explore while learning about the market. Once they have a good grasp, traders can make investments by choosing the best stocks.
Generates Gains for Day Traders
Many traders think that Muhurat Trading makes them a lot of money since the Sensex would be in a positive trend. As a result, a lot of people buy stocks and sell them the same day. However, one must exercise caution because the Sensex has seen losses during some Muhurat trading days. Additionally, there have been instances where the Sensex dropped the day following the event.
U.S. industrial production output will impact markets throughout the world. Contrary to expectations, this number decreased by 0.2% in August. Experts will be watching closely to see if factory activity has increased or decreased even further. Having shrunk 2.6% in Q2FY22, the Chinese economy has slowed down dramatically.
Investors would be better able to predict the direction of the Chinese economy with the aid of the Q3FY22 GDP figures, which are scheduled for release. The focus will be on the businesses’ quarterly results at home. The management’s analysis on the trajectory of future earnings growth will be watched closely by D-street.
Investors are encouraged to choose their investments with caution and wisdom in light of the several significant events that will soon take place. Nifty50 decreased 0.75% to 17,185.7 at the end of the week.
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The normal session typically lasts from 6:15 pm to 7:15 pm on the day of Muhurat trading, with block deal and pre-open sessions coming before the normal session and call auction and closing sessions coming after. BSE and NSE open trading windows for nearly two hours on this day.the long term, the concept was taken into the trading world.
Laxmi Puja is held on the day of Muhurat Trading.
Diwali signifies the start of the year for many Indian households.
Families from Gujarat and Northern Maharashtra perform the Chopda Puja.