Muhurat Trading : History, Significance & Surprise Announcement

Muhurat Trading is a well-known old ritual of the Indian stock market. No other stock market in the world follows this custom of opening exchanges in the evening on the day of Diwali. :grinning:

The word “Muhurat” means an auspicious time, and it is propitiously received during the Hindu calendar. Many traders do their business during this time for religious, sentimental, and traditional reasons.

History of Muhurat Trading

Diwali is the time of year when many stockbrokers open new clients’ settlement accounts.Hence, they would open during the auspicious time – the Muhurat. Traders also worship their books of accounts on Diwali. Many beliefs are associated with Muhurat trading.

Significance of Muhurat Trading

On Diwali, both NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) permit trading for a limited time. Following sessions are allowed to perform during the muhurat trading period :

  1. Block Deal Session
  2. Pre-Open Session
  3. Normal Market Session
  4. Call Auction Session
  5. Closing Session

Muhurat Trading Timings - 2021

Things to keep in Mind Before Indulging in Muhurat Trading

  • Traders must keep a close eye on the resistance and support levels. During the Muhurat trading Sessions, it has been observed that the markets can be volatile with no specific direction.

  • Investors must ensure that they stick with the fundamentals of a company before investing in its stock for the long term.

  • Investing during this period does not guarantee returns. Even if the stock performs well on Diwali, its performance in the future will depend on its fundamentals and macroeconomic factors.

We are extremely excited to announce that there will be ZERO brokerage charges on all trades placed during Muhurat Trading session on the Dhan app! :sparkles:

We are extremely grateful to our users who have constantly provided us with their insightful and thoughtful feedback over the past few months, which we have constantly iterated on.
We wish you and your family a very prosperous and happy Diwali! :boom: :sparkles:

Growth @ Dhan


Dear @RahulDeshpande
Kindly confirm about today’s SIP trigger timing.

Usually when is market is open, it will get triggered at 10 AM.

Today the market is open only from 6:15 - 7:15 PM

Hi Vardhan,
Happy Diwali to you and your family. :grinning:
As markets are closed today and tomorrow on the eve of Diwali festival, we will be triggering SIP requests directly on Monday(8th November 2021).
We will not be triggering the SIP requests during today’s muhurat trading time(6.15PM-7.15PM) as well.

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