Watch out for November 1: Expert tips for Muhurat trading 2024

The festive season signals the arrival of Muhurat trading, a one-hour session rooted in tradition and positive sentiment.

This brief period, observed to mark the start of a new Samvat year, based on the lunar calendar, is characterised by lower trading volumes and subdued volatility, making it an ideal time for strategic moves.

Conducted annually on Diwali, Muhurat trading is a ritual on the Indian stock exchanges, with many believing that trading during this "auspicious hour" brings good fortune.

Steeped in tradition, the session sets a positive tone for the financial year ahead. Beyond economic significance, it symbolises the optimism that comes with new ventures.

Muhurat trading on November 1

This year, both BSE and NSE will hold the Muhurat trading session on Friday, 1st November, from 6:00 pm to 7:00 pm.

While markets remain closed during the day, this evening session allows for token investments, blending Diwali’s festive spirit with the market.

"When it comes to Muhurat trading, it’s more about tradition than profit-driven strategies. Investors often buy small amounts of shares symbolically rather than diving into extensive trading. This approach values sentiment over immediate gains," says Trivesh D, COO at Tradejini.

Generally, markets remain stable during Muhurat trading, but strategic investors can still make tactical moves.

While some choose aggressive action, many focus on cautious participation, especially given the current market correction phase.

"Muhurat trading is more than just another session—it’s a positive ritual. The one-hour session is less volatile with lower volumes, ideal for tactical positioning rather than high-risk moves. Savvy investors might consider strategies like the butterfly option. With the market in a corrective phase, a smart, rather than aggressive, approach is wise," notes Puneet Sharma, CEO and Fund Manager at Whitespace Alpha.

Outlook for Muhurat trading 

The markets have trended down throughout October, with the Nifty 50 falling almost 8 percent from its peak of 26,216.

On the Nifty chart, a head and shoulders pattern is visible, with a decline following the break below the support level at 24,777.

This downward trend is confirmed by the 50-day moving average, which has turned negative.

Nifty is currently trading at 24,309, with immediate support around 24,000. If this support level is breached, further declines could follow, although a rebound may see it consolidate within a stable range.

Bank Nifty, meanwhile, is showing signs of positive momentum. Currently testing resistance at 51,756, a bullish reversal pattern is forming on the chart, suggesting a possible upward trend.

Additionally, a crossover between the 10-day and 21-day moving averages is emerging, with Nifty holding above its 50-day moving average.

(By arrangementt with livemint.com)