What to anticipate today for Diwali Muhurat Trading in 2023

Leading stock exchanges BSE and NSE will celebrate Diwali with a one-hour special “Muhurat” trading session on Sunday night, following the esteemed custom. For stock market activities, it is seen as an auspicious window. The session will run from 6 p.m. to 7:15 p.m., including a 15-minute pre-market portion.

The start of the new Hindu year, or Vikram Samvat, or “Samvat 2080,” will be commemorated with a special symbolic trading session. It is stated that doing this ceremony will bring success and wealth all year long.

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What can one anticipate from the trade session on Diwali Muhurat?

1. During this period, a number of sectors will be open for trade during the “Muhurat” trading session, including equity, commodities derivatives, currency derivatives, equity futures and options, and securities lending and borrowing (SLB).
2. As people are more motivated by their emotions than by numbers on this particular day, the market is predicted to be largely bullish.
3. Businesses of all sizes are likely to purchase and sell stock options during Diwali, since many people are calculating the new fiscal year.
4. It’s thought during this period that trading can lead to success and prosperity.
5. In 2021, the Sensex and Nifty indices gained 0.49% during the one-hour trading session, compared to 0.88% last year.

What takes place in the Muhurat? About the five stages in total:

Block deal, pre-open, main trading, call auction, and closing session are the five sessions that make up the trading session.

The first stage is called a block deal session, during which dealers agree to purchase or sell stocks at a set price and notify the stock exchange of their plans.

The stock exchange sets the opening price during the pre-open session by considering supply and demand. This normally lasts for eight minutes or so.

The focal point of Muhurat trade, which lasts for about an hour, is the major trading window.

Illiquid securities (trades involving securities that are not regularly traded) are conducted during call auction sessions.

The final stage in which investors or traders can place a market order at a closing price is known as the closing session.