What is Muhurat Trading?
Before we answer the question, what is Muhurat trading meaning, let’s look at the term Muhurat. The word ‘Muhurat’ means an auspicious time. In Hindu customs, Muhurat is a time when planets are aligned favorably to ensure positive results.
Muhurat Trading is a common ritual followed by the traders in India. This is a one-hour time that is considered auspicious on the day of Diwali for investing in shares. The stock exchange specifies the time of Muhurat trading every year.
According to beliefs, people trading during this one hour have a better chance of earning wealth and gaining prosperity throughout the year. Typically, this period is during the evening of Diwali and most people prefer buying stocks as a token of Goddess Lakshmi. This is unique to the Indian stock markets only.

Muhurat Trading Timings 2023
Here is a quick look at the Muhurat Trading time for 2023 for both BSE and NSE:

Muhurat Trading will be conducted on November 12, 2023 (Sunday).

Pre-Open Session: 6:00 PM - 6:08 PM IST
Muhurat Trading: 6:15 PM - 7:15 PM IST
Post-close: 7:30 - 7:38 PM IST
Market Close: 7:40 PM IST

History of Muhurat Trading

Traditionally, stockbrokers started their new year from the day of Diwali. Hence, they would open new settlement accounts for their clients on Diwali during the auspicious time – the Muhurat.

The primary among them was that most Marwari traders/investors sold stocks during the Muhurat since they believed that money should not enter the house on Diwali and Gujarati traders/investors purchased shares during this period. While there is no data to back this, in current times, this doesn’t hold.

Today, Muhurat trading has become more of a symbolic gesture than a cultural one because people believe the period to be auspicious. Most Hindu investors do Lakshmi Pujan (pray to Goddess Lakshmi) and then purchase shares of strong companies that can generate good returns in the long run.
Who Can Benefit from Muhurat Trading?
The Muhurat trading Session is a good time to buy or sell stocks since the trading volumes are high. Also, usually, the market is bullish since the festive spirit focused on prosperity and wealth drives people to be optimistic about the economy and the stock markets. Hence, it is a good time for both investors and traders, experienced and new, to benefit from the Muhurat trading session.

For people who believe in auspicious planetary alignments, Diwali is celebrated for bringing in wealth and prosperity. Hence, if you have never invested in stocks, then Diwali can be a good day to begin.

Look for high-quality companies and purchase some stocks with a long-term horizon and in sync with your investment plan. However, if you are planning to enter the stock trading domain, then it might be prudent to observe the markets during Mahurat Trading and probably do some paper trading to get the hang of things. Markets are known to be volatile since the trading window is open for only one hour. Hence, being watchful as a new trader is recommended.

Experienced day traders can benefit from this session since most investors/traders will buy and/or sell stocks as a gesture to acknowledge the auspiciousness of the day.

While many experts are hoping for a good Muhurat trading Session in 2023, you will do well to keep the fervor in your heart and make trading decisions with your head.

Things to Keep in Mind Before Indulging in Muhurat Trading
Here are some aspects that you must keep in mind before you start buying or selling stocks during the Diwali day trading time (Muhurat Trading Timings).

Most traders and investors consider this period to be auspicious to make investments.
All open positions at the end of the trading session will result in settlement obligations.
session will be held on November 12, 2023.
Traders must keep a close eye on the resistance and support levels. During Sessions, it has been observed that the markets can be volatile with no specific direction.
Investors must ensure that they stick with the fundamentals of a company before investing in its stock for the long-term.
If you plan to profit from the volatility, then ensure that you choose stocks with good trading volumes since the trading window is only for one hour.
Investing during this period does not guarantee returns. Even if the stock performs well on Diwali, its performance in the future will depend on its fundamentals and macroeconomic factors. Invest smartly.
Happy investing and a very happy Diwali!

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Disclaimer: All such data is based on my personal analysis. This is not a buy or sell recommendation; therefore, please do your analysis and consult with your financial advisor before taking any steps in market. Loss/profit seen by you is yours decision, channel has no engagement in it.