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Muhurat Trading

, November 1, 2013, 0 Comments

Diwali Muhrat Trading Marketexpress
There are a number of legends connected with the origin of Diwali. But Diwali is widely celebrated as the day that Lord Rama returned triumphant to Ayodya after defeating Ravana. This aspect of Diwali is the most common and acceptable account with regards to the other origins of Diwali. The special trading session would be conducted to pay obeisance to Lakshmi, the Hindu goddess of wealth and prosperity. It would also mark the New Year for traders as per the Hindu calendar.

Diwali represents the most auspicious time of the year for the Indian Stock Markets. The Stock Markets here celebrate this auspicious occasion with a time honoured tradition – Muhurat Trading.

The tradition of Muhurat trading dates back over a century. As the name suggests, Muhurat Trading basically means trading within a pre designated auspicious time. Each year, the BSE and NSE Stock Exchanges earmark an hour on Diwali to welcome wealth and prosperity. The session happens for an hour in the evening and is considered extremely propitious.

Despite volatility, market conditions, global economic crises etc, Muhurat Trading also ensures a positive run for the Exchanges. The tradition is to enter a trade on Diwali day as ‘using’ money during this period is considered auspicious for prosperity.

The objective can be to buy and hold stocks for the long term or book intra-day profits and not carry forward trades beyond this day. Muhurat Trading usually ends with the Sensex and Nifty notching up profits, however small they may be. Diwali Muhurat Trading / Deepavali 2013 Muhurat Trading will be held on Sunday, November 03, 2013 (Diwali Amavasya – Laxmi Puja). Muhurat Trading Timings will be announced few days before Diwali.

While it is mostly traders who trade in this special trading session, some investors also participate. However, brokerages say retail investors participate only with token amounts rather than any meaningful sum of money.

With the clear perspective that trading on Muhurat day is purely a token, you may buy stocks. In any case, it is wise to always buy stocks based on research and fundamental attributes, which compliment your long-term portfolio. Keep in mind that there is no real benefit in trading on Muhurat day. It’s more a tradition and does not have any financial significance. A number of brokerages have special Diwali ‘picks’, stocks which are touted to be “best” choices for the year ahead. Some even have special contests running during this period to encourage more volume in stock trading.

Equity is about long-term returns, and not really about tradition. It’s better to stick to the fundaments like investment discipline fundamental stock picking and long-term return objectives when it comes to investing in stocks.

To learn more about Muhurat Trading visit here


ABOUT THE AUTHOR OF THIS POST
KOTAK SECURITIES
Kotak Securities is one of India’s largest share broking firm offering share trading account, online trading, option trading, mutual fund and currency trading services along with a research division specializing in Sectoral Research and Company Specific Equity Research. We also provide you with latest updates and news from share bazaar. click here to visit kotak securities website.


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