Muhurat trading session – BSE and NSE stock exchanges allow trading for one hour during this session
Muhurat Trading 2020: Stock exchanges will hold a special one-hour session today to mark Diwali 2020. This special session is intended to provide a window for investors to transact on the auspicious day of Diwali, which marks the start of a New Years according to the Hindu calendar, also known as the Samvat Vikrami calendar. Muhurat’s special trading session is scheduled for the most auspicious time of the day. (Also read: Diwali 2020 – BSE, NSE will hold a special Muhurat negotiation session on November 14)
This year, Muhurat’s trading session will begin at 6:15 p.m. M. And it will end at 7:15 p.m. M. On Saturday, November 14. Last year, the S&P BSE Sensex Index finished 192 points or 0.49 percent higher at 39,250 and the broader NSE Benchmark Nifty 50 Index rose 43 points or 0.40 percent to 11,628.
Is Muhurat negotiating?
The word Muhurat means a propitious or favorable moment to perform a particular task. This special trading window on Diwali day aims to allow investors to make their purchases to ensure positive results. The stock exchanges decide Muhurat’s trading window each year.
What about the Muhurat trade?
The BSE and NSE stock exchanges allow trading for a limited period of time, usually one hour. Typically, a Muhurat trading session is characterized by positive movement in benchmark indices, but low trading volumes.
Like a normal trading session, a Muhurat trading session also includes the following:
Bulk Offer Session
In this sub-session, two parties agree to exchange a bond at a fixed rate. They both have to inform the stock exchange about this transaction.
Pre-open session
During this period, the stock markets reach the ideal opening price for the shares listed for the next session. This process becomes important, since it aims to stabilize the strong volatility due to the evolution of the news that occurs outside market hours.
Normal market session
This is the session in which the actual negotiation takes place.
Call for auction session
This session is intended for trading illiquid securities.
Closing session
All orders placed at the closing price are settled during this session.
(Also read: Diwali 2020 – Brokerage recommends Airtel, SBI and Infosys stocks. Here are some other bets)
Why a Muhurat trading session?
Many believe that trading during this period gives investors a better chance to profit and attract prosperity throughout the year. This is an age-old tradition unique to the Indian stock markets.
Investors reserve their best equity bets for the right occasion for positive returns and prosperity.
(Also read: Diwali 2020: a good time to start your investment journey)
Muhurat trade history
BSE and NSE have held the Muhurat special business sessions since 1957 and 1992, respectively. Traditionally, stockbrokers opened new settlement accounts for their clients on Diwali.
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