Muhurat Trading 2020

Diwali, the festival of lights, is the most awaited festival in India. All purchases from buying a new mixer grinder to a car or a flat or even getting married, are postponed to converge with the auspicious occasion of Diwali as it is believed that nothing bad can happen on such an auspicious day. This sentiment is also shared by traders and investors who flock to the stock markets to participate in Muhurat trading. It is believed that investing during Muhurat trading brings good luck and prosperity.  

Diwali holds a special significance for the two main trading communities in India, the Gujaratis, and the Marwaris as they welcome the new Hindu accounting year, Samvat. On Samvat these communities worship their accounting books and tijoris and pray to goddess Laxmi, the goddess of wealth, to bless them with abundant wealth and prosperity. Samvat marks the closure of old accounting books and signifies a fresh start to the new accounting year. 

Borrowing from the same tradition, the Bombay Stock Exchange (BSE) started Muhurat trading in 1957 whereas the National Stock Exchange (NSE) commenced Muhurat trading in 1992. As Muhurat trading completes 63 years in 2020, let us explore Muhurat trading, its significance and unveil the top 10 stocks to buy in Muhurat trading 2020.

Muhurat Trading

What is Muhurat Trading? 

The Hindi word “Muhurat” means an auspicious time where the planets are aligned favourably to guarantee positive results. Traders believe that by trading on this auspicious day, they will earn wealth and prosperity throughout the year. 

Muhurat trading is a 1-hour long special trading session held by BSE and NSE on the auspicious occasion of Diwali every year. The timing of Muhurat trading is dependent on the planetary movements and keeps changing every year. This year, Muhurat trading will be held on 14th November 2020 between 6.15 pm to 7.15 pm. 

Muhurat Trading Timings 2020 

While Muhurat trading will commence on 14th November 2020 between 6.15 pm to 7.15 pm, the detailed timeline for Muhurat trading 2020 is as follows:

Trading Session

  BSE & NSE Muhurat Timing

Pre-open Muhurat 

6.00 pm – 6.08 pm

Muhurat Trading

6.15 pm – 7.15 pm

Block Deal 

5.45 pm – 6.00 pm

Call Auction

6.20 pm – 7.05 pm

Post-closing Muhurat 

7.25 pm – 7.35 pm

Muhurat Trading Settlement Timing

All trades done during Muhurat trading result in settlement obligations. Post Muhurat trading on 14th November 2020, the markets will remain closed on 15th November (Sunday) and 16th November (Monday) on account of Diwali. The delivery of shares in your Demat account will take place on 18th November 2020. 

Should you trade during Muhurat trading? 

Muhurat trading is not a magical time where profits are guaranteed. Remember that stock markets are unpredictable and hence when you trade during Muhurat trading, your intention should be to buy quality long term stocks. 

But how can you differentiate quality stocks from the duds? Which ratios should you look at? What is the ideal debt to equity ratio? Which companies are real multibaggers?

We understand that for a layman, every stock might seem lucrative but the truth is that of the 5000+ stocks listed in the market, only a handful are worth investing in. 

Therefore to ensure that you do not invest in the wrong stock on the auspicious occasion of Diwali, after extensive research, Samco has discovered 10 lucrative stocks with a potential to deliver 15% return in 1 year! 

These 10 premium stocks are exclusively handpicked by Samco and contain stocks across large-cap and mid-cap segments. To know more read our detailed coverage on the 10 stocks to buy in Muhurat 2020.

Tips for Muhurat Trading 2020

  1. Shortlist quality stocks: Traditionally, Muhurat trading is considered to be the best time to invest in quality long term stocks for wealth creation. Since the markets are open only for an hour, you need to do your homework in advance and come prepared with a list of well-researched quality stocks to buy during Muharat trading.
  2. Pay attention to the technicals: After shortlisting quality stocks, do not get swayed away by market sentiments and buy stocks at an expensive level. Decide your buying price in advance and wait for a good opportunity to invest in the share. Remember, it is not compulsory to trade during Muhurat trading. If you buy a fundamentally bad stock, then no ‘muhurat’ can save you from disaster.
  3. Diversify your portfolio: Muhurat trading is an ideal time to add asset classes like gold to your portfolio. Instead of buying physical gold, you should invest in gold mutual funds, gold ETFs and gold sovereign bonds.

 2020 has been a tough year, to say the least. From businesses shutting down to the exodus of labourers to corporate pay cuts, the misfortunes don’t seem to end. But with the Sensex registering a 66% gain since March 2020, Diwali 2020 is already looking bright. 

To make your Diwali even brighter, Samco has handpicked 10 stocks which can change your fortunes in just 12 months! These 10 stocks have the potential to deliver 15% returns over the course of the next 1 year. So, invest in the 10 best stocks for Muhurat trading 2020 by opening the best Demat and trading account in India with Samco and usher in abundant wealth and prosperity. 

Happy Samvat with Samco!

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