Stock Exchanges

Muhurat Trading 2022

TrueData Team · 19 October 2022 · 7 Comments
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Muhurat-Trading The second half of the Indian calendar year is filled with festivities and the stock markets are not left untouched by this festive atmosphere. The NSE and BSE list out the number of holidays during the calendar year at the onset of each year but on the occasion of Diwali, even though it is a holiday the stock markets are open for an hour. This is the Muhurat Trading hour which has been a tradition for the Indian stock markets for decades. 

So what is this Muhurat Trading Hour and why is it so significant?

Muhurat-Trading The term ‘Muhurat’ refers to an auspicious time in our Indian culture based on which important rituals and events are conducted. On the occasion of Diwali, Indians have a Lakshmi Pujan at their homes and places of work. Some communities like the Gujarati and the Marwari Communities also have rituals like the Chopda Pujan (worship of Books of Accounts) as part of their Diwali Celebrations. The Indian stock markets also honour these special rituals and have Muhurat Trading to celebrate Diwali.  This Muhurat Trading Hour is the special trading hour on NSE and BSE where the investors and traders carry out token transactions to mark the beginning of the new Hindu calendar year or the new Samvat. The tradition of Muhurat Trading began on BSE as early as 1957 and on NSE in 1992. This tradition is, therefore, decades long and is eagerly awaited by the entire stock market community. The idea of trading during this special hour is to seek the blessings of Goddess Lakshmi and hope to have a profitable investment or trading portfolio. Like any normal trading session, investing and trading are open in various segments like Capital Markets, Futures and options, Commodity Markets, and Currency Derivatives. 

What are the timings for Muhurat Trading 2022? 

The Muhurat Trading Hour in 2022 is scheduled to be on 24th October 2022 and the timings for the same on NSE and BSE are declared by the stock exchanges. The details of the same are given below.
  1. NSE

The Muhurat Trading is available for all the segments for investing and trading purposes on the NSE and the session timings for these segments are detailed below. 

Capital Market 

The timings for Muhurat Trading in 2022 on NSE for Capital Markets are,  [table id=26 /]

Futures and Options 

The timings for Muhurat Trading in 2022 on NSE for Futures and Options are [table id=27 /]

Commodity Market

The timings for Muhurat Trading in 2022 on NSE for Commodity markets are [table id=28 /]

Currency Derivatives 

The timings for Muhurat Trading in 2022 on NSE for Currency Derivatives are [table id=29 /]
  1. BSE

Similar to NSE, the Muhurat Trading hour on BSE can be used to trade and invest in various segments of stock markets. The timings for the same on 24th October 2022 are detailed below. 

Equity Segment  

The timings for Muhurat Trading on BSE for Equity Segment are  [table id=30 /]

Equity Derivatives 

The Muhurat Trading session timings for the Equity Derivative segment are, [table id=31 /]

Commodity Market

The Muhurat Trading session timings for the Commodity Market segment are, [table id=33 /]

Currency Derivatives 

The Muhurat Trading session timings for the Currency Derivative segment are, [table id=34 /]

IMPORTANT: Points to Remember 

The Muhurat Trading session is limited to an hour and therefore, the stock markets are quite volatile during this season. Also, being in the festive mode, it is generally observed that the markets are on the bullish side. This warrants extra caution for the novice as well as seasoned investors and they should take relatively safer positions. Some of the key points to remember during the Muhurat Trading Hour are highlighted below.
  1. Although this is a special hour, all the usual rules of trading, investing, and settlement will apply. 
  2. As the markets are quite volatile, suitable trading and investing positions should be taken after carefully understanding the price trends backed by significant momentum and volumes.
  3. While the buzz is high during the Muhurat Trading Session, the core principles of fundamental and technical analysis of stocks should not be ignored. 
  4. Traders can make marginal short-term capital gains by taking suitable positions on momentum-backed stocks.
  5. Do not forget to add a stop loss to safeguard the portfolio from excessive losses.
  6. Novice and risk-averse investors can purchase token stocks of blue chip companies that match their lower risk appetite and are a good addition to a long-term investment portfolio. 

Conclusion

Muhurat Trading holds a special place in the Indian stock markets and is a yearly ritual that is not missed in decades. Traders and investors execute token transactions with the hope to seek the blessings of Goddess Lakshmi and have a profitable portfolio all year round.  So what do you think of this ritual of the Indian Stock Markets, isn't it exciting! Do let us know what are your plans for Muhurat Trading and if you have any stocks shortlisted.  As the Muhurat Trading Hour is in the evening and is different from the usual trading session (9 am-3.30 pm), traders will have to change the settings for the charting softwares Amibroker, Ninja Trader 7, Ninja Trader 8, AdvancedGet, MetaStock, and Motivewave. Users can change their settings for the desired software on Truedata through this link Diwali Muhurat Trading Timing Wishing all the readers Happy Diwali and a Prosperous New Year!
TrueData Team

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