As Diwali 2024 approaches, the Indian stock market is gearing up for its traditional Muhurat trading session – an annual, one-hour trading period held during the festival. According to recent announcements from India’s stock exchanges, this year’s Muhurat trading session is scheduled for November 1, with trading allowed from 6:00 PM to 7:00 PM. Additionally, there will be a small window for trade adjustments until 7:10 PM. This schedule limits active trading to 6:00 PM to 7:00 PM, with changes allowed only until 7:10 PM.
Muhurat Trading on Diwali 2024|Muhurat Trading Time 2024 NSE
As per the official schedule, the Bombay Stock Exchange (BSE) has scheduled the Muhurat trading session for November 1, which will run from 6:00 PM to 7:00 PM. Traders should note that all intraday positions will be automatically closed 15 minutes before the session ends, which emphasizes the importance of strategic planning for trades executed within the day.
Ajit Mishra, SVP Research, Religare Broking: Buy on dips and keep an eye on key levels
Ajit Mishra points out that the Nifty index is going through a corrective phase, with some signals indicating a possible reversal or bounce. According to Mishra, if the Nifty closes decisively above the 24,500 mark, the Muhurat trading session could be a decisive moment. A move above this level could push the Nifty towards the 24,750-24,850 range. Conversely, a fall below the 24,000 range could bring the index closer to its 200-day exponential moving average (DEMA), a crucial long-term support level.
Muhurat trading strategy: Mishra advises investors to adopt a strategy of accumulating high-quality stocks on dips, especially for the medium to long term. He emphasises the benefits of looking at the Muhurat trading session as a time of measured accumulation rather than short-term speculation.
Stock recommendations: Some of Mishra’s favorite companies for this strategy include leading companies such as State Bank of India (SBI), ITC, Berger Paints, Titan and Jyothy Labs. These stocks represent well-established brands in sectors that could see growth in the coming months and are suitable for patient investors focused on portfolio quality.
Puneet Sharma, CEO and fund manager of Whitespace Alpha: Take advantage of the low volatility of Muhurat trading
Puneet Sharma takes a different approach by suggesting options strategies suited to the generally low volatility of Muhurat trading. Since the one-hour Muhurat session is often characterized by low volumes and low turbulence, it provides an excellent environment for options strategies that do not rely on aggressive market fluctuations. Sharma advocates the butterfly options strategy, which takes advantage of low volatility to allow investors to prepare themselves for potential upside moves without exposing their portfolios to significant risks.
Butterfly strategy setup: The setup involves buying one call option with a low strike price, selling two call options at the middle strike price, and buying another call option at a higher strike price. This structure is designed to create a balanced risk-reward scenario.
Benefits of the Butterfly Strategy in Muhurat Trading:
Controlled Volatility: The typical low-volatility environment of the Muhurat trading session complements the Butterfly Strategy’s focus on sustainability.
Defined Risk and Reward: This options strategy has a limited risk structure, which gives investors a clear understanding of the maximum potential loss and gain.
Time Decay Benefit: Since options lose value as they approach expiration (theta decay), the Butterfly Strategy can take advantage of this during Muhurat trading, allowing investors to maximize returns without extensive portfolio management.
Sharma emphasizes that Muhurat trading should not be about making hasty decisions. Instead, strategies like the Butterfly setup allow investors to participate in a strategic and conservative manner.
Trivesh D, COO, Tradejini: Prioritise tradition over aggressive trading
Trivesh D offers a different view, explaining that Muhurat trading is largely a symbolic session. For many investors, it is more about marking the occasion with a small purchase rather than aiming for immediate profits. He recommends that investors make selective purchases in stocks they already follow and believe in rather than exploring new and risky trades. This symbolic session can thus become a way to reaffirm faith in ongoing investments.
Muhurat Trading Approach: Investors are advised to make modest stock purchases to honour tradition rather than aim for short-term gains. By investing in stocks they trust, investors can stick to their broader financial goals without taking unnecessary risks.
Amit Golia, Group CEO, MarketsMojo: Invest in long-term growth sectors
Amit Golia suggests a forward-looking approach, encouraging investors to focus on sectors poised for sustainable growth over the next few decades. According to him, sectors such as technology, healthcare, renewable energy and infrastructure are likely to see steady demand as the global economy grows. Muhurat trading offers a great opportunity to build positions in these sectors with a long-term horizon.
Sectoral focus: The emerging and evolving needs of the economy will drive growth in sectors such as technology and healthcare. As climate awareness and infrastructure investments grow, renewable energy and infrastructure stocks are well-positioned for long-term appreciation.
Short-to-medium term opportunities: For those with a shorter investment horizon, Golia suggests consumer goods and durables. These sectors often benefit from increased spending during the festive season, which can lead to higher earnings and potentially moderate profits in the months following Diwali. This two-pronged approach – short-term focus on consumer goods and long-term positions in growth sectors – can help investors diversify effectively.
Atul Parikh, CEO, Bigul: Take a long-term view amid volatility
Atul Parikh advises investors to take a long-term view, especially during the Muhurat trading session, where volatility can sometimes be unpredictable due to the limited trading time-frame. Although this session provides a window for tactical trades, Parikh recommends looking at it as an opportunity to make initial or incremental investments in solid stocks rather than an attempt to make significant profits.
Muhurat trading advice: For experienced and new investors, Muhurat trading provides a symbolic and meaningful entry point. Instead of focusing only on short-term gains, investors can use this time to take positions with a long-term growth outlook, potentially in line with new year financial goals.
Key Takeaways for Muhurat Trading Strategy for Diwali 2024
As Muhurat trading 2024 approaches, these expert insights highlight the value of blending strategy with tradition. While some may use this session to symbolically mark the new year with modest purchases, others may take advantage of the low-volatility environment for strategic options trading. Here are some important things to keep in mind:
Approach tradition with a long-term focus: Consider investing in quality stocks or growth sectors such as technology, healthcare, and renewable energy, aligning with long-term goals.
Use options for stability: For those interested in options, the Butterfly strategy offers controlled risk and reward, ideally suited for the low-volatility nature of Muhurat trading.
Sentiment over speculation: Muhurat trading can be a time to make modest, symbolic investments. Small, strategic purchases can mark the occasion and reinforce financial goals.
Take advantage of festive season sectors: Consumer goods and durables may perform well in the short term due to increased spending during the festive season.
Balance risk and reward: Use this session as a measured entry point rather than a time for aggressive trading. Diversify your approach with both long-term picks and cautious option strategies.
Ultimately, Muhurat trading 2024 is a time to take a step back, assess market conditions, and plan new year financial strategies. By combining traditional sentiment with calculated moves, investors can make meaningful investments, setting the stage for sustainable growth and portfolio resilience in the year ahead.
Muhurat Trading 2024 update of 01 NOVEMBER 2024, 7:10 PM
Muhurat Trading 2024: Indian markets closed with gains in the special session on Friday, November 1, 2024, marking a gain for the seventh consecutive Muhurat trading session.
Indian markets closed with gains in the special session on Friday, November 1, 2024, marking a gain for the seventh consecutive Muhurat trading session.
The Sensex closed 335.06 points, or 0.42 per cent, higher at 79,724.12, while the Nifty closed 99 points, or 0.41 per cent, higher at 24,304.35. In the 2023 Muhurat session, the indices rose over half a percent.
Meanwhile, the broader markets outperformed the Nifty benchmark in this special session, with the Nifty Midcap and Nifty Smallcap indices jumping 0.68 per cent and 1.03 per cent, respectively.
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