The term Muhurat Trading refers to the special trading hour on the Indian stock exchanges on the auspicious day of Diwali. During this hour, traders undertake token trades to mark the start of the new year and in a bid to have a profitable portfolio.
The Muhurat trading hour usually begins at 6 pm and continues for an hour across various segments of stock markets like Capital Markets, Futures and Options, Commodity Markets, and Currency Markets.
The core principles of trading and investing hold true even in the Muhurat Trading session. Stocks backed by strong fundamentals and a thorough analysis should be picked over going with the market flow or the current buzz in the market.
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