Muhurat Trading is an ancient tradition in the Indian financial market to embrace the goddess “Lakshmi” in our life. Traders or investors consider the day as the most auspicious one. In this article, you will get acquainted with the meaning and importance of the Muhurat Trading. Besides this, I will place information on Muhurat Trading in NSE 2019 Timings, Stock Picks, Tips.
What is Muhurat?
“Muhurat” is a Sanskrit term which means “auspicious time”. The Muhurat is decided as per the planetary movement. Many newbies start their career on this day due to this holy belief. Generally, this Muhurat comes every year during Dewali. The holy time stays for an hour. At that time, the market is open even it is a holiday.
What is Muhurat Trading in NSE, BSE?
The ritual followed by the stock market and traders. This Muhurat Trading timing stays for an hour in both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). As the Indian stock market is closed for the rest of the day, stock prices tend to move in this Muhurat session to reflect the domestic and global news-flow. All the Stockbrokers show respect to this trading session with great enthusiasm and zeal.
Traders and investors open their new account book in this trading session with the first token order and close the old account.
When is Muhurat Trading 2019?
This year the event will take place on Sunday 27th October 2019. Though it is the beginning of the Hindu Calender year, all traders from different religions celebrate the festival together. And, that’s the true essence of Indian Market. This year, the Muhurat or Auspicious timing is from 6.15 pm to 7.15 pm at night.
A Glimpse of the Previous Year
From the year November 7, 2018 (previous year Muhurat Trading) to October 22, 2019, the Nifty and Sensex have gained 9.19percent and 10.56 percent, respectively. Apart from this, the BSE Midcap and Smallcap indices fell 4.2 percent and 9.57 percent during this span period.
Muhurat Trading FAQ
During the Mururat Trading, all types of trading are allowed by Indian exchanges. It is like a normal trading day, the only difference is the trading will conduct between an hour. Mainly investors buy-sell securities to open their new accounts and abandon the old ones.
As Muhurat Trading is the auspicious beginning to the traditional new year, investors place token orders and buy stocks. Though many of the investors and traders buy stocks for long-term holdings, some of them go for intraday. They buy-sell security during the one hour and book intra-day profits.
Generally, Muhurat Trading conducted every year on the day of Dewali. The BSE, NSE open each year for a particular hour on that day. Like, this year 20019, the market will open between 6.15 pm to 7.15 pm in the evening.
There are no specific rules for the Muhurat Trading. The only rule is if you are an intraday trader, you have to square off your trading within the auspicious Muhurat. The market will open only for that time only.
Key Points about the Muhurat Trading
Here, are the key points on the trading session.
Traders take the trading session as one of the most important days for them. Simply, the day of Diwali is considered to be quite auspicious to invest’s one’s money. This is one of the reasons behind every new investment, made by investors. They open their new account book by buying a security on that day.
Opportunity for New Investors
Lots of belief attach to this Muhurat Trading. There are many traders who believe that this trading opportunity can bring them maximum profit. Hence, many buy and sell stocks on the same day. On this day, the market keeps volatile and new traders get the opportunity to make profits.
Profit-making Day for Intraday Traders
As on that hour, the entire Indian stock market work with the buying-selling of stocks, the market turns out quite volatile. So, it is undoubtedly a profit-making day for the intraday traders. Professional traders can make millions on that 1 hour.
What do the Investors need to Do on Muhurat Trading?
First, investors need to find out good companies’ stocks for investment. Before that, get sure about your trading and investment area. if you are an intraday trader, choose your stocks according to this. And, when you are a swing trader, go for long term stocks.
You can find many websites, brokers who recommend stocks for you for Muhurat Trading. Here, we’ve collected some of the best picks for you. This can turn your account green on the very first day of the Hindu year. So, start your account with profit on this auspicious event.
Stocks to Invest in Muhurat Trading in NSE BSE 2019
Now, come to the most important part of the article. Here, you will get high upside potential stocks for the Muhurat Trading. The list is made of different popular recommendations by the financial advisors.
I place the recommendation of stocks from different brokers and financial houses.
Recommended by HDFC Securities
HDFC securities recommend Muthoot Finance for the company’s strong fundamental reports. So, check this out.
MFL is India’s one of the largest NBFCs, gain popularity due to its short tenure loans, gold baking, and self-liquidating portfolio. In the Q1FY20, the company’s AUM has risen 15.5%. Over a few years, they diversify their business into many segments like microfinance, insurance broking, home finance, asset finance, etc.
It is advisable to buy the stock at LTP and hold it till the target of Rs.751 with Stop loss on Rs.556
This is the technical chart of MFL. As you can see that the graph is in the upward direction. It’s been expected to see a higher high in the coming period.
Other top 2 recommendations are Ultratech Cement and Amber enterprise.
Recommendation from IndiaNivesh
The next Recommended stock is from IndiaNivesh. So, let’s see.
The Hero Motocorp is an Indian motorcycle and scooter manufacturer company. It is the largest two-wheeler manufacturer company in the world with a market share of about 46% in this category.
A lower interest rate, stable input prices push their growth to many extents. After evaluating the company, IndiaNivesh arrives at a target price of Rs. 3,376. It implies an upside of around 27% from the current level.
The technical chart of the company reflects the strength of the share price. It is suggested buy it at the last traded price.
Angel Broking Recommendation
Angel broking Suggestion for Muhurat trading in NSE is Amber Enterprises.
The company is in a leading position in the room air conditioners (RAC) outsourced manufacturing space in India. Currently, the company serves eight out of the ten top RAC brands in India. Their strategy would boost its manufacturing capabilities. As per the consolidated report, revenue/PAT CAGR of 20%/32% respectively over FY2019-21E. Their strategy captures the RAC market in India.
The above chart is one day time-framed. It shows a bullish trend is going on. The target will be a 10 to 12% up move.
Way2Wealth Picks for Dewali
Way2Wealth suggests for ITC company share. Let’s have a look into this.
we believe that the recent underperformance will sooner or later turn into outperformance. Hence, we recommend investors to buy ITC in a range of Rs 240 to 230 with an upside price target of Rs 365. Stop-loss should be placed below Rs 190.
So, if you were not aware of the Muhurat Trading strategy, this article is gonna help you a lot. Therefore, first, understand the importance of Muhurat trading first. Then analysis the suggested stocks and invest for it. I wish all of you a very Happy Dewali and may you have a profitable Muhurat Trading.