Diwali Muhurat Trading 2024: Samvat 2081 Timings and Key NSE Details You Should Know

Diwali Muhurat Trading 2024: What investors need to know about Samvat 2081

Diwali Muhurat Trading 2024: Samvat 2081 Timings and Key NSE Details You Should Know

Diwali is one of the most important festivals in India, and Muhurat trading is a special tradition where investors and traders participate in a symbolic trading session. The National Stock Exchange (NSE) has declared the Muhurat trading timings for Diwali 2024 in Samvat 2081. Muhurat trading marks an auspicious beginning to the new financial year, and the traders look forward to prosperity and success in their investments.

Muhurat trading has become a traditional and meaningful event both for retail as well as institutional investors; under this event, they are given the chance to invest and start the auspicious Hindu new year on an affirmative note. In this blog, we will be discussing what Muhurat trading is, its importance, and all relevant facts regarding the Diwali 2024 session.

Muhurat Trading Timings 2024

Muhurat Trading Timings 2024 (Samvat 2081)

Session Timing (IST)
Pre-Open Session 5:45 PM - 6:00 PM
Muhurat Trading Session 6:15 PM - 7:15 PM
Post-Closing Session 7:30 PM - 7:45 PM

What is Muhurat Trading and Why Is It Important?

Muhurat trading is that special one-hour session when Indian stock exchanges, such as NSE and BSE, set off the Hindu New Year on Diwali. It happens on the most auspicious time on the Hindu calendar, called “Muhurat.”

Historically, trading during this session is considered to bring in wealth and prosperity for the rest of the year to investors. For traders and brokers, it symbolizes a successful financial year ahead. While market dynamics during this one-hour session are entirely normal, driven as usual by supply and demand prices, the sentiment during this period is very positive.

Second, the name of the event has been termed as a family affair since the culture of token trades is practiced by the stockbrokers and their families as part of tradition. The tradition has developed over time and now it is not even just retail investors, but also institutional involvement, making it one of the most imperative days in the financial calendar.

NSE Timings for Muhurat Trading 2024

National Stock Exchange, or NSE, has released the schedule of its Muhurat trading session for 2024. This falls in line with Samvat 2081, the Hindu calendar. All details are here.
Pre-Open Session: It will start with a pre-open session to calm down the early jitters.

Muhurat Trading Session: This is an one-hour window within which regular equity trading goes on as usual.
Closing Session: The Muhurat trading concludes with a post session once the market closes for the day.
Muhurat Trading Timings on Diwali 2024 (Samvat 2081):
Pre-Open Session: 5:45 PM to 6:00 PM IST
Muhurat Trading Session: 6:15 PM to 7:15 PM IST
Post-Closing Session: 7:30 PM to 7:45 PM IST

Note: these schedules are subject to minor deviations to account for favorable market conditions and/or unforeseen events; watch for official announcements.

Preparations for Muhurat Trading

Muhurat trading can last for an hour, but most traders and investors start preparing well before that date so that every minute counts. Here’s how you can get ready for the session:

Plan Your Trades in Advance
Since the Muhurat trading session is available only for one hour, it has to be prepared all trades in advance. The choice of your stocks be based on either fundamentals or technicals. Defining goals and making decisions whether you are doing the token purchases or seeking short-term returns will enable you to trade effectively for this session.

Use Limit Orders
Since the period is short, the market will be prone to more fluctuations, and thus there will be changes in the stock prices at a really fast rate. It is better to place limit orders and avoid making market orders so you can enter specific trades at certain price levels that you want. This way, you are going to avoid overpaying or selling at unwanted prices.

Diversify Your Portfolio
However, if you are doing trades on Muhurat day in the context of an overall financial strategy, make sure your portfolio remains diversified. You may want to buy stocks across sectors or asset classes on Diwali as it is generally an event when investors invest in portfolios for long periods of time.

What Samvat 2081 Means to Investors

It is that time of the year when a fresh Hindu year, Samvat 2081, dawns, and it is a good time to review a previous financial year’s performance and realign strategies, at which point new investments begin, and traders take this session to balance portfolios, invest in promising companies, and plan their journey to build wealth in the new year.

With optimism in the market, and an overall bullish expectation from most sectors, investors wait to get the new Samvat 2081 off to a good start. Among the potentially promising sectors for the year ahead, some names do stand out as follows:

Information Technology (IT)
Pharmaceuticals
Financial Services
Infrastructure
All these have weathered stormy conditions rather well, and investor expectations are on high alert for better long-term prospects as the Indian economy sees a better recovery period.

Muhurat Trading Historical Performance
Year after year, quite positive Muhurat trading results happen regarding market performance. The investors, mostly with a long-term view of holding their investments, use this day to commit the first trades of the year. On the contrary, since the session is relatively short, price movements appear less volatile than usual trading days; nonetheless, the sentiment related to the session is bullish.

Historically the Nifty 50 and Sensex have often closed in the green during the Muhurat trading session, thus a signaling buoyant investor sentiments. Though past performance is no guarantee of future results but the general positive trend and an optimistic market view ahead of Diwali makes it a promising time for investors.

What Should Investors Watch Out for During Muhurat Trading?

While it is a propitious day from the perspective of Muhurat trading in the light of traditional view, investors must be cautious and guard against risks:

Market Volatility: The short span of the session together with the fact that large quantity has to be traded in may lead to huge differences in prices. The traders must be prepared for volatility and not chase the stock prices.

Liquidity Issues: It is going to be a liquidity-starved session as it is only one session so bid-ask spread may increase for some stocks.

Emotional Trading
Many traders might be compelled to trade because of the general euphoria Diwali has brought about. However, people should not take any hasty decision without proper research or analysis.
Conclusion: Muhurat Trading 2024 – New Beginning Time
Muhurat trading, on Diwali, is one of the most important and revered conventions for Indian investors. Though this session lasts only for an hour, it is highly revered because it falls in the early days of the Hindu New Year, Samvat 2081, and allows the traders to make their first investments in the new financial year.

Preparations and strategy will be the words or the mantra of the investors who wish to participate in this auspicious event. It is a time for reflection, planning, and being optimistic as traders gear up to welcome the new year with its fruitful financial experiences. Approaching the Muhurat trading session of the year 2024, it’s that time again when merchants hope to start the next year with a good finance journey.
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Disclaimer:

All above recommendations are of the market analysts. Neither the author, nor the brokerage firm, nor Stockstoday.in will be responsible for any loss arising out of any such decision taken based upon this information. All users are cautioned to take their own expert advice prior to making any investment decision.

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