Diwali Muhurat Trading Strategy: Tips & Tricks

In this article, we will discuss

Diwali marks the triumph of good over evil and is one of the most celebrated festivals in India. It is believed that the day of Diwali would bring wealth and prosperity, leading to a tradition where people schedule their purchases on Diwali to usher in an era of wealth and good fortune. 

In keeping with this unique tradition, the Indian stock market has set aside a special trading session to enable traders and investors to purchase stocks and other financial assets on Diwali. Known as the Diwali Muhurat Trading session, it typically lasts for an hour and is conducted on the day of Diwali. The stock exchanges - BSE and NSE - announce the Muhurat trading timing a few days before the festival, which is generally between 6:00 PM and 7:15 PM.

As an investor, you should exercise caution when purchasing or selling on the stock market on Diwali. This is because market volatility tends to be much higher during the Muhurat trading session than on most other days. Thankfully, with the proper Muhurat trading strategy and some tips to navigate this special trading session, you can ensure that you’re protected. 

Diwali Muhurat Trading Strategy : Tips & Tricks

Here’s a quick overview of some things you need to keep in mind when trading during the Diwali Muhurat trading session. 

  • Establish a Clear Plan 

If you’re planning to purchase or sell during the special trading session, it is crucial to have a solid plan beforehand. You need to establish clear objectives, target prices and determine the asset you wish to purchase or sell irrespective of whether you plan to trade or invest during the one-hour session. Having a well-thought-out plan can help you stay focused, making navigating the usually volatile market session much easier. 

  • Pick the Right Stocks

Not all stocks may be ideal for trading during the special session. Choosing the right stocks is crucial to ensure profitability. To get a good idea of stocks to trade in, consider researching Muhurat trading stocks online. Also, remember to look into factors like volatility, liquidity in the counter and trading volume before entering into a position. This should help minimise the risks involved.  

  • Avoid Intraday Trading 

Due to the increased market volatility, you may be tempted to carry out intraday trading. However, unless you’re an experienced trader capable of handling high volatility, it is not advisable to trade intraday during the Muhurat trading session. 

Since the session is only open for an hour, you may find it difficult to square off your open positions at a profit. Always remember that volatility is a double-edged sword and may amplify your losses just as much as it amplifies your profits. 

  • Deploy Strict Risk Management Measures 

If you wish to trade during the special Diwali share market session, it is advisable to come up with strict risk management measures in addition to a clear Muhurat trading strategy. This will help protect your positions from going to substantial losses due to the increased volatility during the session. 

For every trade, make sure you set an appropriate stop-loss point. Additionally, consider placing a strict limit order at your target price. This will protect your profits by automatically squaring off your open position once it reaches your specified target price. 

  • Refrain from Placing Large Orders

In an attempt to cash in on the festive and celebratory mood, some traders and investors place large buy and sell orders during the Muhurat trading session. Doing so, however, is not advisable due to a couple of reasons. Firstly, the session is just one hour long, which may not be enough to fully execute the large order. Secondly, liquidity in the counters may not be enough to adequately meet the requirements of large orders. 

  • Invest Only a Token Amount 

If you firmly believe that purchasing during Diwali will bring about prosperity and wealth in the long run, consider investing a token amount during the Muhurat trading session. You can consider expanding your position during the next few sessions, which are likely to be less volatile than during the special one-hour trading session. This may help keep your losses minimum if the markets move against you. 


The Diwali Muhurat trading session has traditionally been one of the best times for new investors to enter the market. As a matter of fact, 11 out of the last 15 Muhurat trading sessions have ended in green, reinforcing the fact that the day is auspicious for traders and investors alike. That said, as we get closer to the day of Diwali, you may find the market saturated with speculations, rumours and unverified trading tips. It is important to avoid falling prey to such unscrupulous activities. Remember to always conduct your own research to determine the best stock for Muhurat trading before you participate.

If you need help with this and are eager to further enhance your Diwali Muhurat trading session, Samco Securities offers a unique tool that seamlessly blends tradition with modern technology. With our innovative web AR filter, you can transform any Swastik symbol — a sign of prosperity and good fortune — into a gateway to uncover Samco's top picks for Muhurat trading. Simply scan a Swastik in your vicinity to reveal Shubh Sach and gain access to insightful and carefully curated stock selections. These recommendations can be pivotal in helping you make informed decisions during this auspicious trading window. 

Disclaimer: INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING. The asset classes and securities quoted in the film are exemplary and are not recommendatory. SAMCO Securities Limited (Formerly known as Samruddhi Stock Brokers Limited): BSE: 935 | NSE: 12135 | MSEI- 31600 | SEBI Reg. No.: INZ000002535 | AMFI Reg. No. 120121 | Depository Participant: CDSL: IN-DP-CDSL-443-2008 CIN No.: U67120MH2004PLC146183 | SAMCO Commodities Limited (Formerly known as Samruddhi Tradecom India Limited) | MCX- 55190 | SEBI Reg. No.: INZ000013932 Registered Address: Samco Securities Limited, 1004 - A, 10th Floor, Naman Midtown - A Wing, Senapati Bapat Marg, Prabhadevi, Mumbai - 400 013, Maharashtra, India. For any complaints Email - grievances@samco.in Research Analysts -SEBI Reg.No.-INHO0O0005847

Download App to know your Andekha Sach

Get the link to download the app.

Google Play Store App Store
Samco Fast Trading App

Leave A Comment?