Many new traders are curious about the muhurat trading event. Muhurat trading is a special trading event held on the Indian stock exchange on the occasion of Laxmi Pujan.
This is a special trading event where markets open in the evening for trading for just 1 hour. In today’s article, we are going to discuss in detail muhurat trading and what you can do on the day of Muhurat Trading.
As we all know, Diwali is the festival of lights, indicating the victory of light over darkness and good over evil. During the auspicious occasion, people normally invest in stocks, mutual funds and other various assets as Laxmi Pujan is considered one of the best times to invest your money, and for that reason, the market is kept open in the evening.
Also, according to some beliefs, people investing or trading during this interval have a good chance of creating wealth. This unique event takes place only in the Indian Stock Market. Every year the Muhurat trading schedule is announced by the stock exchanges.
Muhurat trading is generally considered a good time to invest in different assets. So, if you are thinking of investing your money in the stock market, then there will be no other good event than the muhurat trading. Generally, the market is bullish on the day of muhurat trading, indicating prosperity and wealth.
Since Diwali is celebrated for bringing Wealth & prosperity, it is normally a good time for people who are investing in the market for the first time. You can look for blue chip stocks which are part of the Nifty 50, and invest in them on the muhurat trading if you are going to invest your money in the stock market for the first time.
Investors should study the fundamentals of the company before investing in any stock.
Normally markets tend to be volatile during the occasion of the muhurat trading as there is only one hour for trading, and all the open positions at the end of the muhurat trading session will result in settlement obligations set by the exchange.
There will be a market holiday on the occasion of Laxmi puja, and the markets will only open for an hour during the evening. During the muhurat trading, all the equity and derivatives segments will be kept open to trade.
It is advised that traders should strictly follow their systems as there are high chances of a volatile trading session. New traders can take a back seat during the muhurat trading session as it is often one of the difficult markets to trade due to high volatility.
When trading in equity or equity derivatives, please ensure that there is enough volume in that particular stock so that you can square off your position without any trouble. Also, some of the stocks have high chances of low liquidity, so try to avoid trading in those stocks.
I hope that through this article, you understood the concept of Muhurat Trading. I hope that you all will invest some of your money into stocks or Mutual funds on the auspicious occasion of Laxmi Pujan.
Happy Learning and Happy Diwali to all the Readers!
How to trade in muharat trading?
You can watch this video on Muhurat Trading on our Youtube Channel : https://www.youtube.com/watch?v=vsUZvljTWR8
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