What is Diwali Muhurat Trading NSE?
In India, we have an auspicious occasion during the Diwali. During that time, we have Diwali Muhurat trading. The National Stock Exchange, popularly known as NSE, makes provision for a special trading session during Diwali. Diwali comes with a lot of festivities. Firecrackers, decorative lights, Rangoli – all are the important part of this festival. For traders, it comes with a new start of 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.
Muhurat Trading 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 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.
Why Muhurat Trading?
As we have talked 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 favourites of commodity traders during Muhurat trading.
The new Samvat, the Vikram Samvat 2077, will start with the follwing Muhurat trading sesssions.
|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, they 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 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, itis done 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.
Top Picks of 2020 from Brokers
Aswe have seen, the Diwali Muhurat trading is important for traders. To help the traders 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 fulfil the target. Therefore recommended stocks will be for traders discretion. The trader or investor will use the recommendation to buy as per own judgement.