Diwali 2023: To buy or not to buy - what should be your strategy for Muhurat trading?

livemint.com:

BSE and the NSE will conduct the ‘Muhurat trading’ between 6:00 pm and 7:25 pm on Sunday, November 12. The Bombay Stock Exchange (BSE), Asia’s oldest stock exchange, has been conducting the Diwali Muhurat trading sessions since 1957. The NSE started this tradition in 1992.

Over the past ten Muhurat trading sessions, the market concluded seven such one-hour windows with positive returns. According to the Hindu calendar, Diwali marks the start of a new year (Samvat) and this session sets the tone for the upcoming year. Should you buy in the one-hour window this year? And if yes, what should be your strategy? Most analysts believe that investors should buy on the day of Diwali.

According to them, since Muhurat trading marks a new beginning, it’s the right time to review your asset allocation and find out if your portfolio is performing as per your financial goals and rebalance. They suggest maintaining a stock-specific approach to buying for the long term and at the same time exercising caution. Since liquidity is very limited on the Muhurat trading day, it is not advisable to buy or sell a lot.

Still, most investors, especially new investors, can get started by making token investments in stocks they are interested in, on this auspicious occasion. In case you are confused regarding where to invest or what to buy, consult a financial advisor. Most brokerages have also come out with a number of top stock picks to help investors decide what to buy this Diwali.