Diwali Muhurat Trading 2022: In India, stockbrokers and business owners celebrate the New Year on Diwali. You start a new account on this day for the upcoming fiscal year. On Diwali, the brokerage community performs a special Chopda Pujan and venerates business books. They worship Lakshmi, the goddess of fortune, power, and prosperity, on this day.
There are various perspectives on Diwali Muhrat Trading. It is untrue, for example, that Marwari investors and dealers think it is improper for people to buy and sell assets on Diwali. However, during this time, Gujarati merchants and investors purchase shares.
Asia’s first stock exchange, the Bombay Stock Exchange (BSE), launched its BSE Muhrat Trading ceremony in 1957. Since 1992, Diwali Muhrat has traded on the National Stock Exchange (NSE). The act of investing by individual investors has now come to symbolize something.
How does Murat Trading operate?
The market is typically open from 9:15 am to 3:30 pm on weekdays, however, Muhrat’s trading window is only open for one hour at a scheduled time. The following sections often make up a Muhrat trading session:
- Block trading session: In this arrangement, the buyer and seller agree to buy and sell shares at a set price while informing the appropriate exchange.
- Pre-open session: This 8-minute-long session establishes the equilibrium price. Similar to a conventional market session, this one lasts an hour and involves actual trading.
- Call Auction Session: Illiquid security dealing is the focus of this session.
- Closing Session: Trading and investing can place market orders at the closing price during the closing session. Returns on investments made within this time frame are not certain.
Considerations to Make Before Engaging in the Muhurat Trade
Muhurat Trading is a promise, but it doesn’t guarantee that investing in the stock will result in a profit. There are a few things to think about before you begin trading stocks.
- On October 24, 2022, the Muhrat trading session will take place.
- The majority of traders and investors believe that this time of year is favorable for investing. That is the reason there are so many traders seated in front of the monitor.
- At the conclusion of a Muhrat trading session, all open positions are converted into settlement commitments.
- The levels of support and resistance should be understood by traders. In the past, a Muhrat trading session has seen the market be erratic and turbulent. So, as a day trader, being aware of resistance and support levels might aid in your ability to make wiser trading choices.
- Important investment maxims still hold true. Stocks during the reporting season are often humming with excitement and rumors can spread quickly.
- Investors should be informed of the company’s fundamentals before investing and invest in accordance with the investment plan.
- Choose a product with a large trading volume if you want to profit from the volatility because the trading window is limited to 1 hour.
