Diwali Muhurat Trading 2024: Let’s know about this Diwali Tradition in the Indian Stock Market
Diwali Muhurat Trading 2024: Muhurat trading is a special tradition in India that takes place on Diwali, the festival of lights. On this auspicious day, stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) open for a brief, symbolic trading session. This one-hour trading window is deeply rooted in the belief that trading during this time brings good fortune and prosperity for the year ahead.
Muhurat trading blends spirituality and finance. For traders and investors, it’s a way to start the new financial year on a positive note, aligning with the festive spirit of Diwali. It’s not just about profit; it’s also about participating in a tradition that combines faith, goodwill, and optimism in the market.
Diwali Muhurat Trading 2024: Timing and Date
Every year, the exact muhurat trading time is determined based on astrological calculations, and it typically falls in the evening. In 2024, muhurat trading will take place on Friday, November 1st. The trading session follows a specific schedule:
- Pre-opening session: 6:00 PM – 6:15 PM
- Continuous trading session: 6:15 PM – 7:15 PM
This gives traders one full hour to carry out their symbolic trades and start the new financial year on an auspicious note.
Commodity Derivatives Segment
The Muhurat trading session for the Commodity Derivatives Segment on November 1, 2024 will be held at:
| Trading Sessions | Time |
|---|---|
| Log-in | 5:15-6:15 PM |
| Continuous trading | 6:15-7:15 PM |
| Trade Modification | Until 7:25 PM |
The Muhurat trading session for the Currency Derivatives Segment on November 1, 2024, will be held at:
| Trading Sessions | Time |
|---|---|
| Log-in | 5:15-6:15 PM |
| Continuous trading for currency derivatives and interest rate derivatives | 6:15-7:15 PM |
| Cross currency derivatives | Until 7:15 PM |
| Trade modification currency derivatives and IRD | Until 7:25 PM |
| Trade modification cross currency derivatives | Until 7:25 PM |
| Trade annulment request | Until 7:30 PM |
The Muhurat trading session for the Electronic Gold Receipts Segment on November 1, 2024 will be held at:
| Trading Sessions | Time |
|---|---|
| Log-in | 5:00-6:00 PM |
| Pre-open: order entry period | 6:00-6:08 PM |
| Pre-open: matching period | 6:08-6:15 PM |
| Continuous trading | 6:15-7:15 PM |
| Closing | 7:15-7:25 PM |
| Post-closing | 7:25-7:35 PM |
| Trade modification | Until 7:40 PM |
The Muhurat trading session for the Equity Derivatives Segment on November 1, 2024, will be held at:
| Trading Sessions | Time |
|---|---|
| Log-in | 5:15-6:15 PM |
| Continuous trading | 6:15-7:15 PM |
| Trade Modification | Until 7:25 PM |
| Trade Annulment Request | Until 7:30 PM |
Muhurat Trading: History and Significance
Muhurat trading is a long-standing tradition that dates back to ancient India. It is believed that King Vikramaditya initiated this practice, considering that conducting trades during Diwali’s auspicious hour would bring prosperity and success to his kingdom. Over time, this evolved into a cherished custom among traders and investors in India.
Muhurat trading gained official recognition in the Indian stock market during the 20th century. The Bombay Stock Exchange (BSE) was one of the first to adopt this practice in 1957, followed by the National Stock Exchange (NSE). Before the age of online trading, traders would physically gather at stock exchanges during this special hour to engage in trades, marking the beginning of a prosperous financial year.
How Muhurat Trading Works
Today, India’s major stock exchanges, including the BSE and NSE, continue this tradition by conducting Diwali muhurat trading once a year. On Diwali, the stock market remains closed, except for this special one-hour session, allowing traders and investors to make symbolic trades.
The muhurat trading window typically lasts for about an hour and is divided into various segments, including stocks, derivatives, and commodities. It symbolizes a fresh financial start, and many traders begin by offering prayers and performing rituals to invoke blessings.
Thanks to advancements in technology, traders no longer need to be physically present at the stock exchange. Online trading platforms have made it easy for people to participate from anywhere, continuing the tradition of muhurat trading in the digital era.
Historical Performance of Sensex During Muhurat Trading
One of the key aspects of muhurat trading is its impact on the Sensex, India’s benchmark stock index. Investors and traders closely observe the Sensex’s performance during this session, interpreting it as a sign of what the financial year ahead may hold.
Historically, muhurat trading has often set a positive tone for the stock market, with a tendency to generate gains for investors. For instance, in 2008, the Sensex saw a significant surge of 5.9% during the muhurat session, while some years, such as 2016 and 2017, saw slight declines of 0.4% and 0.6% respectively. On the other hand, recent years have witnessed more optimistic results, with gains of 0.49% in 2019, 0.45% in 2020, 0.49% in 2021, and 0.88% in 2022.
This positive sentiment often extends beyond the session, setting the market on a bullish trend in the following days and months.
Frequently Asked Questions: Diwali Muhurat Trading 2024
1. Is intraday trading allowed during Muhurat trading?
Yes, intraday trading is allowed during the muhurat trading session, following regular trading rules. However, it’s always best to check specific guidelines with your broker or stock exchange, as some restrictions may apply.
2. Can you trade in Futures and Options (F&O) during Muhurat trading?
Yes, you can trade in Futures and Options (F&O) during muhurat trading. It is one of the available segments during this special trading hour, allowing investors to engage in derivative transactions.
Conclusion
Muhurat trading is more than just a financial event; it’s a deeply symbolic tradition that blends spirituality with market participation. By marking the beginning of the new financial year with auspicious trades, investors carry forward centuries of belief in prosperity, wealth, and good fortune.
