Muhurat Trading: From 6:00 pm to 7:00 pm on 1 November, Indian stock market will prepare itself for 1 hour special window to trade in midst of Diwali celebration.Â
This special window trading on Diwali is called Muhurat Trading Session, where investors and traders believe to treat or investing auspicious hour which invite good fortune over the period of time.
But before engaging in treats during Muhurat trading session, this questions are the one you should be concerned and aware of.
What is the Time for Muhurat Trading?
Stock market exchanges today have scheduled Muharat trading session from 6 p.m. to 7 p.m.
It is important to note that all introdate positions will be automatically squad of 50 minutes before closing of the session reiterating on the fact of careful planning for intraday traders.
Why you should care more about trading session?
Despite being a symbolic trading session, muhurt trading session allows season investors to adjust their portfolio. But because of short period of time the market is quite volatile during muhurat session.
If you are Risk Lover, muhurat trading session is a gold mine as BSE has been closed higher than what it was before the muhurat trading session 13 times out of 15 times.
Although, the volume of trading is substantially low and only a few stock show significant move in the short span of timeframe.
What are Experts Advising for Muhurat Trading Session?
T he majority of exports view muhurt trading mode of a tradition than profit driven hour, however there are certain experts which is giving it as a opportunity to make money.
Punit Sharma advises butterfly strategy to make most out of Muharat trading, because this is strategy offers a potential for stable returns without exposure to significant market volatility.
The structure of strategy is
Buy one call option at lowers strike rate, cell to call options at middle strike and buy one at higher strike. Is market remains stable the setup brings profits, but for muhurat session this remain to be offshore this by structuring strategy within arrange investors can limit downside risk.
Meanwhile, SVP of research at Religare Broking, Ajit Mishra advisors in investors to align with current market conditions and adjust your portfolio to absorb the negative impact of corrections in ongoing market.
For long term investors, Muhurat trading is an opportunity to accumulate quality stocks rather than a volatile.