Zebu blog

Tag: Market Rituals

  • Why Is Muhurat Trading Special?

    Muhurat trading is an old ritual that has been done by traders for hundreds of years, even before the existence of the share market. This is the lucky hour of trading that happens on Diwali, and the stock exchange decides when it happens every year. People have thought for a long time that trading or investing during the Muhurat will bring money and success for the whole year. During this session, which is mostly held in the evening, most traders buy stocks.

    The word “Muhurat” means a good time to do business. According to the Hindu calendar, this is when the planets are lined up in a certain way, making it a good time to do business. Most traders do business during this time of year for sentimental, religious, and customary reasons.

    How did it all begin?

    During the Muhurat trading session on Diwali, brokers used to set up new settlement accounts for all of their clients. Indian stock exchanges are the only ones that can do Diwali Muhurat Trading. On Diwali, a ceremony called Laxmi Pooja is held on the stock market, and investors buy shares of reputable companies to keep for future profits. Muhurat trading tells us two things that are clear and loud: pay attention to quality and make investments with long-term goals.

    Information you need to know about Muhurat Trading

    1. The best day to put money away

    People believe that the day of Diwali and, especially, the season of Muhurat trade are especially good times to invest money. This is one reason why a lot of traders start the day with special prayers and buy shares in companies they want to invest in for the long term. To make a smart investment, you also need to know what happened on the stock market the day before.

    2. Good for first-time investors

    The best time for a new trader to make their first deal is called the “muhurat deal.” One can learn about the market while exploring with a small amount of money. Once they understand it well enough, traders can choose the best stocks to invest in.

    3. Helps day traders make money

    Many traders believe that muhurat trading is a good way to make a lot of money because the Sensex will be going up, for sentimental reasons. Because of this, many people buy and sell stocks on the same day. But people should be careful because the Sensex has lost money on some Muhurat trading days. There have also been times when the Sensex went down the day after an event.

    What do you need to do?

    Before making an investment, a person who wants to make money should look for stocks or equities with a high return and a strong cash flow. Adding gold to your portfolio of investments needs careful thought if you want to make money from it. Today, you can easily buy Gold in the form of ETF or bonds.

    Muhurat trading If you’re one of the many traders who hasn’t yet found the right time to buy or sell on the stock market, this is the year to do it. This is a very exciting time for both traders and investors. But it’s important to remember to trade wisely and not let your desire to make more money take over.

    So get ready by doing research on the stocks you want to trade and the money you want to put in during the Muhurat Trading this Diwali. Open your Zebu trading account and get started now.

  • Everything You Need To Know About Muhurat Trading – Part 2

    Who Can Benefit from Muhurat Trading?

    SInce there are so many trades during the Muhurat trading session, it is a good time to buy or sell stocks. Also, the market is usually good because people are optimistic about the economy and stock markets during the holidays because they are thinking about getting rich and being happy. So, the Muhurat trading session is a great time for traders and investors, both experienced and new, to make money.

    If you’ve never bought stocks before, Diwali is a great time to start. Look for good companies and buy a few stocks in line with your investing plan and with a long-term view. If you want to get into stock trading, you might want to watch the markets during Muhurat Trading to get a feel for how things work. You should probably do some paper trading as well. Since you can only trade for an hour, markets are known for being very volatile. Because of this, new traders are told to be careful.

    As a sign of respect for the good luck of the day, most investors and traders will buy or sell stocks during this session. This means that experienced day traders can also make money during this session.

    It may be more important to do something than to make money from it. So, day traders with experience can make money by taking positions after giving them enough thought. This year, the economy has been hurt by the effects of the pandemic on both businesses and people’s lives. Many experts think that the Muhurat trading session in 2022 will be a good one, but you should keep your excitement in your heart and use your mind when choosing trades.

    Things to think about before getting into Muhurat Trading

    1. Most traders and investors think that now is a good time to put money into stocks.
    2. At the end of the trading session, all open positions will have to meet certain settlement requirements.
    3. On October 24, 2022, there will be a muhurat trading session. On October 24, the markets will be closed for Lakshmi Pooja.
    4. Traders need to keep a close eye on the resistance and support levels. During Muhurat trading sessions, it has been said that the markets might move in a random way and not go anywhere. So, as a day trader, you will be able to make better trading decisions if you keep the resistance and support levels at the centre of your trading decisions.
    5. Before investing in a company’s shares for the long term, investors should make sure they still believe in the company’s core values. Most of the time, trading during Muhurat is very exciting, and rumours can spread quickly. Keep things simple and invest based on your investing strategy and how much risk you can handle.
    6. Since the trading window is only open for an hour, if you want to make money from the volatility, you should be careful to choose stocks that have a lot of trades.
    7. Investing during this time frame does not guarantee a return. Even if the stock has a good Diwali, its performance in the future will depend on how its fundamentals and macroeconomic factors change.

    Make use of the positive sentiments around Diwali to invest in your favourite stocks. To get started, open your Zebu trading account today.

  • Everything You Need To Know About Muhurat Trading – Part 1

    The Hindu calendar says that the Festival of Lights, or Diwali, is a lucky time. It shows that good wins over bad, that knowledge wins over ignorance, and that light wins over darkness.

    Diwali has a lot of different traditions, rituals, and beliefs that go along with it, just like any other religious holiday. One of these is Muhurat trade. Today, we’re going to talk about this tradition and tell you everything you need to know about it.

    What is Muhurat Trading?

    Before we answer the question, “What is Muhurat Trading?”, let’s take a look at the word “Muhurat.” The word “Muhurat” means a fortunate time. Hindu traditions say that muhurat is a time when the planets are in a good position to make sure success.

    A lot of traders in India follow a tradition called “Muhurat Trading.” On Diwali, this one-hour window is thought to be a good time to buy stocks. The time for Muhurat trading is set by the stock market every year.

    The belief is that people who trade at this time are said to have a higher chance of being rich and successful for the rest of the year. As a gift to Goddess Lakshmi, most people choose to buy stocks around this time, which is often the evening of Diwali. This is only in the Indian stock market.

    Muhurat Trading’s History

    When did Muhurat Trading get its start?

    Many stockbrokers started their new year on Diwali. So, during Diwali, they would open new settlement accounts for their clients during a lucky time called the Muhurat. On Diwali, brokers would also worship their ledgers by doing Chopda Pooja.

    Many people believe that this time is lucky, so muhurat trade has become more of a symbol than a traditional practise. Most Hindu investors do Lakshmi Pujan, which is a prayer to Goddess Lakshmi, and then buy shares in strong businesses that have the potential to make money in the long run.

    How do things work at Muhurat Trading?

    The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) both let people trade on Diwali for a short time. Most of the time, the session has the following parts:

    1. Block Deal Session: This is when two people agree to buy or sell a security at a set price and let the stock exchange know about it.
    2. During the pre-open session, the stock exchange decides on the price that is just right (usually around eight minutes).
    3. During the normal market session, which lasts an hour, most trading takes place.
    4. Auction Session: this is when securities that are hard to sell are traded. A security is said to be illiquid if it doesn’t meet the requirements of the exchange.
    5. During the closing session, people who trade or invest can place a market order at the closing price.

    To open your account with Zebu to invest during the auspicious day of Muhurat trading, get in touch with us now.

    To know more about Muhurat Trading, read out next blog for part 2 of this blog post.