What is Diwali Muhurat Trading NSE?
In India, we have an auspicious occasion during Diwali. During Diwali, we also celebrate the occasion in Diwali Muhurat trading NSE. The National Stock Exchange, or NSE, makes provision for a special trading session during Diwali. Diwali comes with a lot of festivities. Firecrackers, decorative lights, Rangoli – all are important parts of this festival. For traders, it comes with a new start to a new business year. Stock market trading and investing are important to business communities in India. Therefore, NSE has made a provision for small trading hours during that day. This is Diwali Muhurat trading NSE.
Diwali Muhurat Trading NSE Significance
The Muhurat means a specific moment. It also denotes the start of a new year. So, what is a new start during this period? As the name implies, we start a new business year during Diwali. The Indian business community starts a new business year from Diwali. NSE, the premier Stock exchange of India, came up with this idea to start trading for small hours. Diwali is a holiday in India. Muhurat trading starts during the evening. The trading hours end shortly. thus Diwali Muhurat trading NSE helps market participants to allow small share trading.
NSE and BSE arrange for trading session window during Diwali. The trading session starts to celebrate the start of a Hindu new year. The new year is known as Samvat.
This year of 2020 Diwali, a new samvat will start. This Samvat is Vikram Samvat 2077.
Yes, during the specified trading hours, one can buy and sell shares in all the exchanges allowed.
Generally, the overall trading volume is low. The stock movement also remains low during Muhurat trading. Therefore we do not see big index movement during Muhurat trading. A little intraday trading is done, but that is not significant. The index may close up or down, depending on the business environment.
BSE, the Bombay Stock Exchange, Asia’s oldest stock exchange, started Muhurat trading from 1957. NSE started the same from 1992. Trading is symbolic. But some people in Dalal street still believs that shares bought during Muhurat are to be kept for long and should be passed on to next generation. These shares, they believe, bring good luck to family.
Keeping in view, that shares bought during Muhurat should be kept for a long time, buy shares of promising companies. Top brokers provide names of well-researched companies that have promising future. Following their research won’t harm. Go through their advice and find the right stock.
Anyone having demat account with any broker can trade during the Muhurat trading hours.
Why Muhurat Trading?
As we have talked about earlier, the business community starts a new financial year from Diwali. The calendar year is known as Samvat. It is a Hindu calendar year. On the auspicious occasion of Diwali, the Indian trading exchanges, NSE & BSE, allows trading which is otherwise a holiday. Traders start new Samvat by opening a new trade. During evening hours the trading extends for a little whine. And then the exchanges close. A small trading hour allows traders to do trading in small volumes. The business community and traders in India love to start a new year this way.
Diwali Muhurat Trading NSE Timings
AS per NSE, the Muhurat trading session will have the following timings.
The Muhurat trading will start on Saturday, the 14th of November, 2020. Muhurat trading will be on Equity, Future and Options for Equity, Future and Options on Currency. In addition, the commodity exchange will also be open for the following period. Therefore, traders will be able to trade on commodities as well. In fact, commodities, especially Gold and Silver are the favorites of commodity traders during Muhurat trading.
The new Samvat, the Vikram Samvat 2077, will start with the following Muhurat trading sessions.
|Market Schedule Start timings End timings|
|BlockDeal session 5:45 pm 6:00 pm|
|Pre-open session 6:00 pm 6:08 pm|
|Normal market session 6:15 pm 7:15pm|
|Call Auction Illiquid session 6:20 pm 7:05 pm|
|Closing session 7:25 pm 7:35 pm|
Muhurat trading history
Diwali is a very auspicious occasion for every Hindu. the Diwali festival signifies the win of good over evil. It also brings hope to every Indian. For hundreds of years, The hindus believe that Diwali bring good omen for them.
Long ago, in the age of Ticker Tapes, brokering of goods was done. The traders started their trading on this day. It starts a new Samvat. Later, after Bombay Stock Exchange came in operation. Shares in physical forms were traded. Share traders along with their friends and relatives, on the occasion of Diwali Laxmi Puja and Amavasya Tithi, traded physical shares. Inside the hall, stockbrokers and their representatives took part in trading. Clients outside took their calls and traded accordingly. Therefore, NSE and BSE maintain trading to celebrate the festivities.
However, Muhurat trading days allowed the family and friends inside the trading halls. They could enjoy the hue and cry, the excitements inside the trading hall during trading hours. Stockbrokers and their representatives encouraged others to buy shares and wished them luck for the coming year.
This tradition is still maintained. Diwali Muhurat trading NSE still commemorates the tradition and wishes the traders ‘Good Luck’ for the coming year. Therefore it is a kind of goodwill gesture from NSE to the market participants.
Why Pick Stocks During Diwali Muhurat Trading NSE?
Muhurat trading is a gesture of bringing good luck to the family. Therefore, even the veteran traders wish to trade during Muhurat trading. Though trading is done, it is done in low volumes. Picking stocks is done by investments mostly. due to low volumes trading is very limited.
Therefore, taking part in Muhurat trading is important, as far as general belief goes. Invest in small amounts. Invest in good stocks. That is the motto. Chosing a good stock is therefore important. A good investment in Muhurat trading will bring more good times in future.
Why investors should invest during this auspicious day?
Diwali is a Hindu ritual. By celebrating Diwali, the Hindus believe the evil spirit can be destroyed. To celebrate this auspicious day, they worship Laxmi and Kali Godesses to dominate the evil spirit in our society. Burning torches and firecrackers, lighting candles, and Diya during the evening and night, symbolises the win of Good over evil spirit.
The Hindu business community in India opens its new book of accounts on Diwali. they named this hour as Muhurat, meaning the new start. Puja of the Goddess Laxmi is carried out and the new book of accounts is opened after dedicating it to the deity. The business community also weant to close all previous pending accounts on this day and start afresh with their clients. This ritual has been maintained for hundreds of years.
BSE and NSE started to honour this ritual right from the beginning. Traders believe trading on this day is a sacred ritual. As already mentioned, investors believe that shares bought on this day are something sacred. Therefore they invest for the long term after carefully choosing the stocks. People from Dalal street still believe that stocks bought on this day are to be kept for generations. This will bring prosperity for the family and future generations to come. Thus they invest in shares of carefully picked stocks. therefore, the traders keep them for a long time and wish to pass on to the next generation.
Diwali Muhurat trading NSE is a ritual to be maintained for generations. BSE and NSE help the traders to mainitain and celebrate this sacred ritual. Therefore buy stocks of carefully chosen companies and invest for a long time. This is the thought of traders. So buy stocks for the long term during the Muhurat.
Top Picks of 2020 from Brokers
As we have seen, Diwali Muhurat trading is important for traders. To help the trader’s different brokers give some good stock picking advices. Here are some top picks from different brokers.
Top picks from Yes Securities
- KPR Mill, CMP 737, Target 1105, Sector Textile
- Manappuram – CMP 155, Target 225, Sector Financial
- Redington – CMP 129, target 182, Sector Distribution
- Kansai Nerolac – CMP 515, Target 700, Sector Paints
- M&M – CMP 594, Target 800, Sector Auto
- ICICI Bank – CMP 393, Target 519, Sector Financial
- TCI Express – CMP 790, target 1036, Sector Logistics
- HDFC – CMP 1924, target 2500, Sector Financials
- Radico Khaitan – CMP 437, target 568, Sector Breweries
- Kotak Mahindra Bank – CMP 1547, target 1949, Sector Financials
- CRISIL – CMP 2079, Target 2600, sector Ratings
- Alembic Pharma – CMP 965, Target 1180, Sector Pharma
IDBI Capital Markets and Securities Limited
- Alembic Pharma – Target 1360
- Bharti Airtel – Target 620
- Johnson Controls – Target 36% rally from CMP
- Bayer CropScience – Target 6850
- Nestle India – Target 20820
- Hindustan Unilever – CMP 1940, Target 2135
- Kotak Mahindra Bank – CMP 1556, Target 1800
- ICICI Bank – CMP 416, Target 492
- Asian Paints – CMP 1723, Target 1935
- HCL Technologies – CMP 1074, Target 1250
- SBI Life insurance – CMP 827, target 936
- Dr. Reddy’s Lab – CMP 2613, Target 2900
- Aarti Industries – CMP 754, Target 875
- Mindtree – CMP 721, Target 896
- RITES – CMP 261, Target 328
- Dixon Technologies – CMP 2972, Target 3649
- Lumax Industries – CMP 1150, Target 1600
Diwali Muhurat Trading is a long-standing ritual obeyed by NSE, BSE as well as the Indian business communities. Therefore market participants in India prefer to buy stocks during the Muhurat Trading. The stock recommendations show a target for the 12 months. Keeping that in view, a trader should not buy for immediate results. During the coming year, stocks may also not fulfill the target. Therefore recommended stocks will be for trader’s discretion. The trader or investor will use the recommendation to buy as per their own judgement.