Can We Trade On Diwali

Check All Frequently Asked Questions

Diwali season is here and investors are excited to make money in the entire festive session. But particularly talking about 4th November 2021, there’s a question hovering all around in the trading world- Can we trade on Diwali?

Diwali is considered a much celebrated holiday across the nation. With Lakshmi Pujan coming, “Samvat” makes its beginning which is the Hindu New Year and the market remains closed for traders and investors.

But the GOOD NEWS is, to hold on to traders’ sentiments in this holy time, BSE came up with the concept of “Muhurat Trading” in 1957 followed by NSE in the year 1992.

So, let’s dive in to know what Muhurat trading is and what is the time to do trading on Diwali this year?

Muhurat Trading Meaning

Muhurat trading is the practice of investing or trading in the share market when on Diwali market opens for one hour at the time of Lakshmi Poojan to represent wealth and prosperity. 

Trading during this time is done with a belief to create wealth and multiply profits with the blessings of goddess Lakshmi along with some special prayers.

Muhurat Trading Timing

But when does this Shubh Muhurat start?

So traders can start trading on Diwali this year from 06:15 pm to 07:15 pm

You can also refer to the table above for detailed timings for Muhurat Trading. 

But nothing is as easy as it sounds, 

Do you know how you can do Muhurat Trading? What strategy can you use to utilize the time wisely?

If not then here is the information on how you can begin your journey in the stock market on this auspicious occasion.

How to do Muhurat Trading?

During this time traders usually buy tokens in the name of their family and friends for keeping them for a long term and sometimes with the intention to never sell those. 

Muhurat Trading is for a limited time but the process remains the same as any other day. 

Long-term traders would prefer fundamentally strong stocks to invest in; On the other hand day, traders will go for volatile stocks to go long or short as per the trading need and style to get decent profits.

Since it’s all festive mood, trading on this day would happen in volumes and so the market will see immense volatility so one might want to abide by some rules to minimize unnecessary risks. 

Especially someone looking forward to kick-starting their career in this space cannot make a mistake on this auspicious day of Diwali.

You can pick the stocks recommended by some of the top stockbrokers and invest in the top sector for Muhurat Trading that can give you potentially high returns.

Muhurat Trading Rules

Want to know just a few basic rules that can strategize your Muhurat Trading a bit better? 

If yes, here we go!

  • The first and foremost rule is to use Stop loss to avoid volatility harms.
  • Since time is limited, make sure to keep a keen eye on booming sectors such as Banking.
  • You must be clear about the fundamental and technical analysis of a stock.

You can also take the help of relationship managers to guide you in making the right decision throughout the Muhurat Trading session. 

Stocks for Muhurat Trading

As mentioned earlier, the banking sector with the automobile sector is likely to see bullish behaviour overall. So here are the top stock suggestions mentioned by Angel One: 


Thus, before it’s too late start preparing to fill up your profits!

Significance of Trading On Diwali

With the brightness of Diwali, it is believed that the Hindu New Year would bring wealth and purity to life.

So traders usually are sentimental about trading during this time to bring Goddess Lakshmi home as the symbol of wealth and prosperity.

Other than that, since it is the most awaited festive season of the year, investors keep a keen eye on stocks for they tend to get highly volatile with a single rumour and thus create an opportunity to make some more money by going long or short.

Also, there are stockbrokers providing the benefit to trade in Free!

So look for the stockbroker offering the benefit on Muhurat Trading brokerage and plan your investment now.


Hence if you are looking for Muhurat picks for this Diwali, the above-mentioned stocks or sectors might be a thing to look at. So, before it’s too late start preparing to fill up your profits!

Reap the benefit of this auspicious occasion by opening your Demat account online for FREE!

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