Muhurat Trading 2022: Everything you need to know!
Here are some tips before you start investing in stocks during a muhurat trading session!
Laxmi Poojan, the main day of Diwali is very special for the stock market. Even though the market is closed on this particular day, one hour of ‘Muhurat trading’ is scheduled. Indian stock markets are the only ones where muhurat trading is practiced every year by traders.
It’s history dates back to the founding of the Bombay Stock Exchange and the day is regarded as auspicious for trading. Majority of people like to invest during this time as a tribute to Goddess Lakshmi. This year's muhurat trading session will take place on October 24, 2022, from 6:15 PM to 7:15 PM.
The majority of traders and investors believe that it is a good time of year to invest. As a result, there are many traders seated in front of the screens. Muhurat trading sessions have a history for being directionless and unpredictable. During this time, there is a lot of festive frenzy and excitement in the markets and rumours can spread quickly. As a result, before you begin trading stocks, consider the following factors:
What to do
The resistance and support levels must be closely monitored by traders in order to make wiser trading decisions. Make a plan for the Diwali trading session to buy dependable and high-quality stocks for the long term and make sure you understand the company's fundamentals before investing in it. Because the trading window is only for one hour, be sure the stocks you choose for investment have considerable trading volumes.
What not to do
Investors are advised against placing any large orders due to the liquidity constraint. Don't get carried away by the idea that investing on this day will guarantee prosperity; instead, guard yourself against rumours, speculations and unverified suggestions. Keep an eye on the stock even if it does well on Diwali because it’s performance in the future will depend on the fundamental and macroeconomic factors.
May Goddess Lakshmi bless you with lots of profits and happiness this Diwali!