Last updated on December 23rd, 2024 at 03:32 pm
As Diwali arrives, it’s time to prepare for Muhurat Trading on November 1, 2024. Celebrated as an auspicious occasion, Diwali brings a unique trading opportunity for investors in India. Muhurat Trading is a special one-hour trading session during Diwali evening, where the planets are believed to align in favor of wealth and prosperity. This tradition, which has become a staple event on the NSE, is a cherished moment for investors and traders who believe in aligning their investments with divine blessings.
Here’s a detailed guide on Muhurat Trading 2024 date and time and some tips on how to approach this Diwali’s special trading session for the best returns.
What is Muhurat Trading?
Muhurat Trading refers to the one-hour session held on Diwali, set by the Indian stock exchanges like NSE and BSE. “Muhurat” means auspicious timing in Hindi. Many traders and investors view this hour as a good time to begin new investments. Some even see it as a moment to honor Goddess Lakshmi, symbolizing wealth and prosperity. For the last 10 years, the session has witnessed high trading volumes as people make fresh investments.
In 2024, the trading session is scheduled for one hour in the evening, and the exact timing is crucial. Here’s the breakdown for the main sessions on November 1:
- Pre-open session: 5:45 PM to 6:00 PM
- Normal trading session: 6:00 PM to 7:00 PM
- Closing session: 7:10 PM to 7:20 PM
For those planning to trade, the Muhurat trading strategy involves picking solid stocks to hold long-term, as well as short-term plays for quick gains. If you’re considering starting new investments, this is an excellent opportunity to select fundamentally strong stocks and tap into the market’s festive spirit.
Popular Muhurat Trading Stocks for 2024
With the festive spirit in full swing, traders often look for stable stocks that can provide potential returns. According to top brokerage firm 5paisa, here are some recommended stocks for Diwali 2024:
| Stock Name | Action | Trade Price | Stop Loss | Target 1 | Target 2 |
|---|---|---|---|---|---|
| Reliance Industries Ltd. | Buy | 2710 – 2740 | 2450 | 3030 | 3250 |
| State Bank of India | Buy | 800 – 820 | 730 | 915 | 970 |
| Bharat Dynamics Ltd. | Buy | 1000 – 1030 | 870 | 1190 | 1300 |
| Olectra Greentech Ltd. | Buy | 1600 – 1620 | 1380 | 1860 | 2040 |
| MphasiS Ltd. | Buy | 3080 – 3100 | 2648 | 3560 | 3880 |
By keeping an eye on the targets and stop-loss prices, investors can manage their risks during this one-hour trading session. While some people buy stocks to mark the start of the new financial year, others choose high-liquidity options to make the most of the limited trading period.
Key Traditions and History of Muhurat Trading
The history of Muhurat Trading goes back several decades, where it was believed that trades made on Diwali bring good luck and prosperity. Traditionally, brokers would open new books on Diwali, marking the start of their financial year. Today, the tradition continues with investors making significant stock purchases during this auspicious hour.
Muhurat Trading Tips and Strategy for 2024
Since the market can be unpredictable, here are some essential tips to make the most of this Diwali’s Muhurat Trading session:
- Focus on fundamentally strong stocks: It’s important to pick stocks with good fundamentals as these are likely to perform well over time. Stocks like Reliance Industries and SBI are popular for long-term investments.
- Set a stop-loss: To manage risk, use stop-loss orders, especially in a session as short as Muhurat Trading, where volatility can lead to price fluctuations.
- Stick with your strategy: Whether you are investing in stocks for the long-term or seeking a quick trade, stay aligned with your plan and avoid impulse buys.
- Observe past trends: Review how stocks have performed in previous Muhurat trading sessions to identify potential patterns.
- Paper trade if you’re new: If you are new to trading, consider observing the markets or paper trading during this session. Muhurat Trading can be intense due to the short duration, so understanding the dynamics before diving in may help.
Muhurat Trading and the Year Ahead
As you get ready for Muhurat Trading this Diwali, remember that this session can also be a good preparation for Muhurat Trading 2025. The strategies you use and the stocks you pick this year can help refine your approach for next year’s trading session.
A Word of Caution
Investing during Muhurat Trading 2024 NSE doesn’t guarantee instant profits. Like any trading session, gains depend on sound research, market conditions, and a disciplined approach. Diwali Muhurat Trading is more about starting your financial year on an auspicious note rather than purely focusing on profit.
Wishing You Prosperity this Diwali from Moneyphobia
We wish you a joyous Diwali and hope your Muhurat Trading session brings prosperity and financial growth. Use this opportunity to enter the market wisely, stay true to your investment goals, and enjoy the spirit of the festival. Happy Diwali from the Moneyphobia team, and may your investments shine brightly
