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How to Prepare for Diwali Muhurat Trading: A Checklist
Diwali, the Festival of Lights is not only a festive occasion but also an important event in the financial calendar, especially for investors in India. The Muhurat trading tradition that takes place on the eve of Diwali is based on the belief that trading at this auspicious time can bring prosperity and wealth in the coming year. Proper preparation is key if you want to participate in this unique business activity. Here is a detailed analysis to help you prepare for Diwali Muhurat trading.
1. To Understand the Importance of Muhurat Trading
Before going into trading, it is important to understand why Diwali Muhurat trading is important. This tradition symbolizes new beginnings and prosperity. Based on Hindu astrology, business time is considered auspicious, making it an ideal time to invest. Understanding this cultural context will not only enhance your shopping experience, it will also give you a sense of purpose in your decisions.
2. Set Clear Financial Goals
Determine what you want to achieve with your investment during the Muhurat trading period. Are you looking for short-term gains, long-term investments, or diversifying your portfolio? Setting clear goals will help you stay focused on your plan and make informed decisions.
3. Research and Analyze Stocks
a. Briefly list the possible storage options
Start by researching which stocks have performed well over the past few months. Identify industries that are expected to perform well, such as utilities, technology, or pharmaceuticals.
b. Analyze market data
Keep an eye on market products till Diwali. Analyze the performance of the broader market and identify areas that show resilience or growth potential.
c. Check out the historic exhibit
Examine the historical performance of stocks in the pre-Diwali muhurat rallies. This study can provide insights into trends and potential consequences.
4. Create a Diversified Portfolio
Diversity is a key element of risk management. Instead of investing all your money in one stock, consider a mix of stocks across industries. This approach can help reduce risks and improve your chances of a good return.
5. Set up your Trading Account
Make sure your merchant account is up and running properly. If you don’t have an account, consider creating one already. Make sure you have completed all the necessary KYC (Know Your Customer) requirements to avoid any last-minute problems.
6. Choose your Marketing Strategy Wisely
Choose a reliable trading platform that offers user-friendly features and strong security. Monitor functionality such as real-time data updates, charting tools, and efficient sequence execution. A simple trading experience during a busy trading season can make a huge difference.
7. Determine the Amount of Investment
Decide how much capital you are willing to invest in the Muhurat trading session. It’s important to only invest what you can avoid losing, especially in a potentially volatile festive trading environment.
8. Create a Business Plan
A clear business plan is essential to success. Consider the following:
a. entry and exit points
Define your entry and exit points based on your analysis. Knowing when to buy and sell can help maximize profits and losses.
b. risk management
Set a stop-loss level to protect your investment. This strategy can help prevent huge losses if the market is against you.
c. Keep up to date
Keep abreast of any news or events that could affect the market. Being informed can help you make faster decisions during trading.
9. Be Prepared for Emotional Trading
Holidays can create strong emotions, which can cloud judgment. Regardless of the market volatility, it is important to remain disciplined and stick to your business plan. Avoid decisions that are quickly motivated by fear or greed.
10. Have a Post-Sales Review Process
Once the trading period is over, take time to review your trades. Analyze what worked and what didn’t, and adjust your schedule for future meetings accordingly. This idea will help you improve your trading skills over time.
Conclusion
Participating in Diwali Muhurat trading stocks can be a rewarding experience if they are approached with the right mindset and preparation. By following this research process, you will be better prepared to navigate the market with confidence and make informed investment decisions. Remember, while the festive spirit adds excitement to the business, the right preparation is the key to turning that excitement into financial success. Prosperity Happy Diwali!
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Top 8 Stock Picks for Muhurat Trading 2024 | Diwali Investment Insights
Explore our top 8 stock recommendations for Muhurat Trading 2024, including market leaders like Tata Motors, RVNL, NCC, and Bank of Maharashtra. Perfect picks for Diwali investing, focusing on sectors with high growth potential in EVs, finance, and infrastructure.
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In 2024, the significance of Muhurat Trading goes beyond financial gains. It represents a time of positivity and new opportunities for traders and investors. Traditionally, families and communities consider this time ideal for starting new ventures. The stock market session is also seen as a way to honor the goddess Lakshmi, the deity of wealth.
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Understanding Muhurat Trading: A Guide to India's Auspicious Stock Market Session
Muhurat trading holds a special place in the Indian stock market calendar, marking auspicious occasions such as Diwali and New Year. This article delves into the significance, traditions, strategies, and considerations surrounding Muhurat trading, offering insights for investors and enthusiasts alike.
What is Muhurat Trading?
Muhurat trading, also known as Mahurat trading, is a special one-hour trading session conducted on the auspicious occasion of Diwali, as per the Hindu calendar. The term "Muhurat" refers to an auspicious time in Hindu astrology, believed to bring prosperity and success. In the context of the stock market, Muhurat trading symbolizes the beginning of a new financial year and is considered propitious for making investments.
Significance of Muhurat Trading
Traditional Beliefs: Many investors and traders view Muhurat trading as an opportunity to invoke blessings for wealth and prosperity in their financial ventures.
Psychological Impact: The session often sets the tone for market sentiment in the upcoming year, influencing investor confidence and expectations.
Market Tradition: Muhurat trading has been a tradition in Indian markets for decades, fostering a sense of community among market participants.
Schedule and Timing
Muhurat trading typically takes place in the evening for one hour, announced by the stock exchanges in advance. The exact timing varies each year but usually falls during the evening hours, allowing participants to conclude their trading activities before festivities begin.
How Muhurat Trading Works
Duration: The session lasts for one hour, during which regular trading rules and regulations apply as per the stock exchange norms.
Market Activity: All segments of the market, including equities, derivatives, and currency, may participate in Muhurat trading, offering opportunities across different asset classes.
Volume and Liquidity: While trading volumes during Muhurat trading are typically lower than regular sessions, liquidity can vary based on market conditions and investor participation.
Strategies for Muhurat Trading
Seasonal Trends: Some investors analyze historical data to identify seasonal trends or patterns that may influence stock prices during Muhurat trading.
Blue-Chip Focus: Given the short duration of the session, many investors prefer to focus on blue-chip stocks or sectors expected to perform well in the upcoming year.
Technical Analysis: Traders may utilize technical indicators and charts to identify potential entry and exit points for short-term trades during the session.
Considerations for Investors
Risk Management: As with any trading session, it's essential for investors to assess risk tolerance, set realistic goals, and avoid impulsive decisions driven solely by the auspicious nature of Muhurat trading.
Market Conditions: While Muhurat trading is symbolic, market fundamentals and external factors such as global economic trends can still impact stock prices during the session.
Long-Term Perspective: Investors should view Muhurat trading as part of their broader investment strategy rather than a standalone opportunity, maintaining a focus on long-term financial goals.
Rituals and Traditions
Puja Ceremony: Many brokerage firms and traders conduct a traditional puja (prayer ritual) before the start of Muhurat trading to seek blessings for prosperity and success.
Greetings and Exchange: Participants often exchange greetings and best wishes for the upcoming year, fostering a sense of camaraderie and community within the market.
Conclusion
Muhurat trading is more than just a trading session; it's a cultural and symbolic tradition that brings together the spiritual beliefs of prosperity with the pragmatism of financial markets. For investors, it represents an opportunity to start the new financial year on an optimistic note, guided by traditional values and market dynamics. Whether you participate actively or observe from afar, understanding the significance and strategies of Muhurat trading can enrich your experience in the Indian stock market landscape. As with any investment opportunity, informed decision-making and a long-term perspective are key to navigating the complexities of Muhurat trading successfully.
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What are BSE / NSE Market Timings, Trading Hours, Opening and Closing Time?
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the two major stock exchanges in India. They have specific market timings and trading hours for different segments of the market. Here are the details of the market timings for both BSE and NSE:
Market Timings
The market timings for the equity and derivatives segments of BSE and NSE are as follows:
Pre-Opening Session:
Order Entry Session:
Timing: 9:00 AM to 9:08 AM (BSE and NSE)
Order Matching Session:
Timing: 9:08 AM to 9:12 PM (BSE and NSE)
Buffer Period:
Timing: 9:12 AM to 9:15 AM (BSE and NSE)
Regular Trading Session:
Timing: 9:15 AM to 3:30 PM (BSE and NSE)
Post-Closing Session:
Closing Price Determination:
Timing: 3:30 PM to 3:40 PM (BSE and NSE)
Block Deal Session:
Timing: 3:40 PM to 4:00 PM (BSE and NSE)
Additional Trading Sessions
After-Hours Trading:
BSE and NSE also offer an after-hours trading session, known as the call auction in pre-opening, where certain trades can be settled after the regular market hours. This session can extend up to 4:15 PM.
Special Sessions:
In addition to the regular trading hours, the exchanges may also conduct special trading sessions on certain days (e.g., special Muhurat trading session on Diwali).
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These market timings are designed to accommodate the needs of investors and traders, allowing them to trade and manage their portfolios efficiently. Keep in mind that the timings can occasionally change based on regulatory requirements or market conditions. Always check with the exchange or your broker for the most up-to-date market timing information.
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Why Is Muhurat Trading Special?
Muhurat trading is an ancient ritual practised by traders for hundreds of years, even before the advent of the stock market. This is the lucky trading hour on Diwali, and the stock exchange determines when it occurs each year. People have long believed that trading or investing during the Muhurat will bring them money and success for the entire year. Most traders buy equities during this session, which is usually held in the evening.
The term "Muhurat" refers to an opportune time to do business. According to the Hindu calendar, this is when the planets align in a specific way, giving it an excellent time to make business. Most traders conduct business during this time of year for sentimental, religious, and conventional reasons.
How did it all start?
Brokers used to put up fresh settlement accounts for all of their clients during the Muhurat trading session on Diwali. Only Indian stock exchanges can conduct Diwali Muhurat Trading. On Diwali, a stock market event called Laxmi Pooja is place, where investors acquire shares of respected corporations to hold for future earnings. Muhurat trading tells us two things loud and clear: pay attention to quality and make long-term investments.
What You Should Know About Muhurat Trading
1. The best day to save money
People feel that the day of Diwali, and especially the Muhurat trade season, are particularly ideal occasions to invest money. This is one of the reasons why many traders begin their days with special prayers and buy shares in firms in which they intend to invest for the long term. To make a wise investment, you should also be aware of what transpired on the stock market the day before.
2. Suitable for first-time investors
The "muhurat deal" is the optimal time for a rookie trader to make their first transaction. With a tiny amount of money, one can learn about the market while investigating. Traders can choose the greatest stocks to invest in after they understand it well enough.
3. Helps day traders make money.
Many traders feel that muhurat trading is a wonderful technique to gain a lot of money since the Sensex would rise due to mood. As a result, many people purchase and sell stocks on the same day. However, traders should exercise caution because the Sensex has lost money on some Muhurat trading days. There have also been instances where the Sensex fell the day after an incident.
What should you do?
A person looking to make money should look for stocks or shares with a high return and a robust cash flow before making an investment. Adding gold to your investing portfolio requires careful consideration if you want to profit from it.
You can now simply purchase gold in the form of an ETF or a bond.
Trading according to the equinoxes If you're one of the many traders who haven't yet discovered the best moment to purchase or sell stocks, this is the year. This is an exciting time for traders and investors alike. However, it is critical to remember to trade properly and not to let your desire to gain more money take precedence.
So prepare by conducting research on the stocks you intend to trade and the amount of money you intend to invest during the Muhurat Trading this Diwali. Open a Zebu trading account and get started right away.
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Sensex makes biggest Muhurat gain in 14 years - Times of India
Sensex makes biggest Muhurat gain in 14 years – Times of India
MUMBAI: Boosted by strong buying in banking and financial stocks, the sensex gained 525 points, or nearly 1%, to end at 59,832 during Monday’s special hour-long Muhurat trading session on the BSE. This was the biggest Muhurat day gain for the sensex in terms of points, and the best in terms of percentage since 2008, index data showed. The day also marked the start of ‘Vikram Samvat Year 2079’.…
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Sensex makes biggest Muhurat gain in 14 years - Times of India
Sensex makes biggest Muhurat gain in 14 years – Times of India
MUMBAI: Boosted by strong buying in banking and financial stocks, the sensex gained 525 points, or nearly 1%, to end at 59,832 during Monday’s special hour-long Muhurat trading session on the BSE. This was the biggest Muhurat day gain for the sensex in terms of points, and the best in terms of percentage since 2008, index data showed. The day also marked the start of ‘Vikram Samvat Year 2079’.…
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Muhurat Trading 2023:
We hope you enjoyed reading this article and learned something new about muhurat trading 2023. If you have any feedback, questions, or comments, please feel free to share them with us. We would love to hear from you and help you with your muhurat trading
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Diwali Muhurat Trading: A Guide to Investing on the Auspicious Day
Diwali, the festival of lights, is not just a time of celebration, family gatherings and the exchange of sweets; It is also very important in the world of finance, especially in India. One of the unique traditions associated with this festival is the concept of Muhurat trading, the special one-hour trading that takes place on the evening of Diwali. In this blog, we explore the importance of Deepavali Muhurat trading, its historical roots and tips to make the most of this auspicious occasion for stock market investing.
Understanding Muhurat Trading
Muhurat trading refers to symbolic trading on Diwali, usually in the evening, when traders and investors buy stocks as a symbol of new beginnings and prosperity This session usually lasts for about an hour, which is considered auspicious according to Hindu tradition, from a predetermined time by exchange of shares.
Historical Significance
The trading practice of Muhurat has its roots in ancient Indian traditions, where buying and selling on this auspicious day is seen as a way to invoke blessings of wealth and prosperity in the coming year in the belief of a good return on investment buried in this period.
Historically, the Muhurat trading event dates back to the 1950s when the Bombay Stock Exchange (BSE) introduced the event. Since then, it has become a ritual traders wait for every year regardless of market conditions.
Importance of Diwali Muhurat Trading
· A symbol of new beginnings: Diwali signifies the triumph of light over darkness and knowledge over ignorance. Muhurat Trading embodies this spirit of new beginnings, giving investors the opportunity to start or expand their portfolio.
· Positive sentiment: The festive atmosphere is conducive to stock market growth. Many investors believe the stocks they buy in this period are likely to rise in value, giving market participants optimism.
· Culture and Tradition: For many, participating in the muhurat trading is a way to honor cultural traditions. It’s not just about making money; it’s also about being part of a long-established event that celebrates wellness and wellness.
Tips for Muhurat Trading
· Plan ahead
Before the Muhurat business meeting, take time to research and prepare a budget. Identify potential stocks to buy for muhurat trading, and analyze their performance and market trends. To make the most of this short trading period, it’s important to have a clear plan.
· Focus on quality stocks
Instead of making instant decisions, focus on quality stocks with strong performance histories. Look for companies with solid fundamentals, continuous improvement and a positive outlook. Long-term investments in high-quality securities are likely to yield good returns.
· Avoid overtrading
Given the short duration of muhurat, it can be tempting to do business quickly. However, avoid the pitfalls of overtrading. Instead of following the market trends, stick to your plan and make informed decisions.
· Apply Stop Loss
Even in these good times, it’s important to manage your risks. Establish stop-loss mandates to protect your investments from unexpected market fluctuations. Thus, those who take advantage of the positive sentiments around Diwali can minimize their potential losses.
· Keep the emotions in check
The festive mood can create strong emotions, making it easier to get into a happy mood. Take a disciplined approach to trading, and remember to make investment decisions based on research and analysis rather than emotion.
The Impact of Muhurat trading on stock market
Historically, Muhurat trading stocks has been characterized by high trading volumes and very high share prices. Enthusiasm among investors tends to lead to growth, at least in the short term. However, it is important to understand that this is no guarantee of future performance. Markets are affected by a variety of factors including economic conditions, geopolitical events and company performance.
Conclusion
Diwali Muhurat shopping is not just a tradition; It’s a unique opportunity for investors to embrace the festive spirit while making strategic investment decisions. If you recognize the importance of this exercise and plan it well, you can make the most of this exciting event. Remember to focus on quality stocks, manage risks and manage your emotions.
As you gear up for Diwali this year, take time to reflect on your financial goals and consider how you can match the spirit of new beginnings that this festival embodies. Good luck in business, and may your investing prosper next year!
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Swiggy IPO 2024 is Here!
Check out our infographic for all you need to know about the Swiggy IPO, including Grey Market Premium (GMP), IPO dates, price band, lot size, and listing details. Plan your investment strategy with these key insights just in time for Muhurat Trading 2024.
And don’t miss our Top 8 Stock Picks for Muhurat Trading 2024! Explore our carefully selected stocks ideal for Diwali investments, featuring market leaders in EV, finance, and infrastructure. Make informed decisions this festive season with Parkavi Finance.
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“We will tell you how to become rich on Diwali. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” –
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Diwali 2017 – 15 Best Stocks to buy on Muhurat Trading
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Muhurat Picks! This Samvat 2074, here are 12 stocks that can light up your Diwali
A collection of 12 stocks that HDFC Securities and ICICI Securities are recommending buying this Diwali. Equity Tips Free Trial | Nifty Tips The Indian market has witnessed a steady run so far this year, with the Nifty clocking a fresh milestone of 10,000. Frontline indices gained 20-22 percent between January 2017 and October 9, 2017.
Going forward, a key element on the market’s radar is the auspicious festival of Diwali. The Diwali period also marks the commencement of a new year for the trader community, and that is commemorated with a Muhurat Trading session by the market. Muhurat Trading is unique to Indian markets and is based on the word Muhurat, which means auspicious time. Traditionally, BSE was dominated by Gujarati and Marwari brokers and they used to follow Hindu calendar. As per Hindu calendar, Diwali is an important festival, similar to Christmas for Western world. On the first day of New Year – Vikram Samvat, these brokers used to open new year settlement accounts for their clients by trading during Muhurat Trading session, explains this report. Between Diwali of last year and this year till October 10, the Sensex has gained 14 percent, while the Nifty has returned around 16 percent. So, what’s in store for the investor this year? Which stocks could one bet on? Moneycontrol brings you 10 stocks, chosen as Diwali picks by HDFC Securities and ICICI Securities. The brokerage house believes that worst faced by the auto sector first due to the BS-IV emission norms and then due to the destocking on account of advent of GST, is already past. “With the recovering demand in the auto sector, rising incomes in the rural sector, better branding programs, new product developments/introductions through JVs, good regulatory environment for the 3Ws, Bajaj Auto is set to benefit,” the brokerage house said in a report. This, it said, will further improve the return ratios and may help it achieve better valuations. HDFC Sec highlighted that acquisition of Reliance Cement has provided an entry to the firm in the central region, apart from the North and East. “The proposed greenfield expansion would take care of the West, making it a formidable player in the industry. Various cost reduction measures like use of pet coke, alternative fuels, higher use of fly ash and slag are likely to result in higher growth in EBITDA/tonne,” the broking firm said in its report. Legal tangles related to land acquisition have been delaying the proposed greenfield expansion of Divi’s Lab, the broking firm said, adding that a continued delay in supplies would remain a cause for concern for clients. “With the import alert (IA) on its crucial Unit-II facility coming into force at the end of Mar-17, 1QFY18 results were not encouraging at all. The management has guided for flattish revenue growth for the rest of the year, and profitability that will be lower than FY17 owing to remediation costs,” the brokerage house said in a report. The brokerage house said that the stock was trading at 3.7x P/EV for FY17, which is lower than the recent listing of SBI Life insurance at 4.1x P/EV for FY17. HDFC Sec said that the company is seeing good traction in the partnership driven digital business as well as direct deal wins. It also said that Persistent has been securing multi-year multi-million dollar deals. ICICI Securities said that the stock has commanded premium valuations over the years due to its consistent track record in earnings. It expects PAT CAGR of 11.9 percent in FY17-19E and loan CAGR of 16.2%. “Based on recent life insurance IPOs at 3.8-4.2x tailing EV, we upgrade HDFC Standard life valuation to 3.6x forward EV (4.2x trailing). IPOs expected in the asset management industry warrant revised valuations for HDFC AMC business to 8% of AUM,” the brokerage said in a report. The broking firm expects revenues to grow at a CAGR of 16.9% over FY17-19E On the valuation front, it said that the stock is currently trading at an attractive valuation of US$61/t (based on FY19E capacity of 5.8 MT), which is 25-30% lower compared to other midcap players HDFC Securities said that the company’s strong parentage will ensure that the company offers best products and solutions to the customers giving it a competitive edge in the markets. It also added that the company’s strategy to strengthen its position in focus industries is expected to lead to steady volume and profit growth. The brokerage house said that it recommends this stock based on reasonable valuations and improving growth outlook from automotives. It also believes that premium valuations for bearings companies augurs well for companies like NRB. ICICI Sec said that the company witnessed muted topline growth in FY15-17 due to capacity constraints and adverse impact of demonetisation on the domestic footwear industry in FY17. “Going forward, however, the company is witnessing healthy demand traction in the footwear segment and has also firmed up its plan to set up a PU plant with likely commissioning in H2FY19, which will lead to sustainable volume led growth in FY18-22E,” the report added. “Over the last 10 years, its revenue, EBITDA & PAT has registered CAGR of 10%, 9%, 12%, respectively. It has low debt (debt to equity at 0.6x) with decent return ratio (>13%),” the report added. It also believes that there is a scope of re-rating based on the valuations. “We ascribe PE multiple of 17x to the average EPS of FY19E & FY20E, to arrive at target of Rs 1,020,” the report added. 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