Muhurat Trading 2022: The First Step In Your Investment Journey
Muhurat Trading is a symbolic trading session conducted by Indian stock exchanges during Diwali. According to the “shubh muhurat”, both the BSE and NSE hold hour-long trading sessions. Diwali is considered to be the ideal time to start anything new. The market sentiment is quite positive, with a majority of buying orders across segments. Investors are said to benefit from trading during this session all through the year. In addition to its spiritual significance, it also signifies the start of the “Samvat”, or traditional Hindu calendar year.
Many Indian investors choose to purchase stocks during this time as a tribute to Goddess Lakshmi. Furthermore, owing to the focus on prosperity and wealth throughout the festive season, people are generally positive about the economy and the markets. Trading takes place across various segments like equity, commodity derivatives, currency derivatives, equity futures & options, and securities lending & borrowing (SLB) in the same time slot.
Investors can evaluate high-quality companies and acquire stocks that align with their investing strategy and have a long-term horizon. If you’re a first-time investor, it might be prudent to observe the markets during Muhurat Trading and perhaps do some paper trading if you intend to enter the stock market trading domain. Since the trading window is only open for an hour, markets are known to be volatile. Therefore, new traders should be watchful. The focus might not be on profitability as much as it might be on the gesture.
Before making a long-term investment in any asset, one should stay focused on its fundamentals. There is usually a lot of excitement during the Muhurat Trading session, and rumours can spread quickly. Invest in sync with your investment plan and risk tolerance.
This year, the Indian bourses will conduct the Muhurat trading between 6:15 pm and 7:15 pm on Monday, 24th October 2022. Trading in the equity and equity derivative segment will begin at 6:15 p.m. and end at 7:15 p.m.
Wishing you all a very Happy Diwali and a prosperous Muhurat Trading!