Muhurat Trading Strategies for Beginners: What to Buy, What to Avoid and How to Manage Risk

Key Takeaways

1. Muhurat trading is a special trading  session held by NSE and BSE on Diwali. It marks the start of a new Samvat year.
2. Liquidity and trading activity can vary during the short session. In less-traded stocks, wider bid-ask spreads and limited orders may make prices move sharply.
3. Some investors  use Diwali Muhurat trading to make small, planned purchases of stocks they already researched, rather than trying to earn quick profits.
4. Unverified tips, illiquid stocks and leveraged futures and options positions can carry significant risks, particularly for beginners who are unfamiliar with them.
5. Limit orders, a fixed budget and a clear exit plan can help you manage risk during Muhurat trading.

Every year, the stock exchanges hold a special trading session on Diwali. Many first-time investors consider placing a  trade during this session because it is traditionally viewed as an auspicious time to start investing. 

However, festive excitement and a short trading window may lead to rushed decisions.

Muhurat trading follows applicable exchange  rules, but the limited session time calls for preparation.  This blog explains how Muhurat trading works, what beginners may consider buying, what to avoid and how to manage risk during Muhurat trading.

What Is Muhurat Trading?

Muhurat trading is a special trading session held  by NSE and BSE on the day of Diwali (Lakshmi Pujan). It marks the beginning of a new Samvat year in the Hindu calendar, which is a tradition observed by many investors  and business communities.

In the year 2026, Diwali falls on 8 November, marking the beginning of Samvat 2083. The Muhurat trading session is scheduled from 2:20 PM to 3:30 PM, with a pre-open session from 2:05 PM to 2:20 PM.  

Trades executed during Diwali Muhurat trading are settled as per the applicable settlement rules, check your broker's square-off rules and the product-specific conditions before placing orders.

How Is Muhurat Trading Different From a Regular Session?

A regular equity trading day has a longer trading window than the Muhurat session. During a shorter session, the amount of trading activity and available liquidity can vary by stock. This may affect how easily orders are executed and the prices at which they trade.

• Lower participation: Volumes in certain stocks may be thin.
• Quick price moves: With fewer orders in the system, a few large orders may move prices more than usual.
• Wider bid-ask spread: The gap between buying and selling prices may be wider in less-traded stocks.

Here's a simple way to compare the two:

No single stock suits everyone. The choice depends on your goals, risk appetite and research. Here are a few approaches beginners often follow:

Stocks you already track

Some investors use Diwali Muhurat trading to add shares of companies they have already researched. The short session is not a substitute for reviewing a company’s business, financial position, valuation and risks.

Small, symbolic purchases

Some investors make a small symbolic purchase as part of the Diwali tradition. If you choose to do this, set a budget in advance and remember that even a small purchase can lose value.

Index-linked ETFs

Some investors consider an index ETF instead of selecting individual stocks. An ETF provides exposure to a basket of securities, though the value can still rise or fall with the market. Review the ETF's objective, costs and risks before buying.

What Should Beginners Avoid During Muhurat Trading?

Unverified tips

Social media groups may share "Diwali picks" before the session. Do not act on a recommendation just because it is popular or time-sensitive. Review the company's fundamentals and verify the source before making a decision.

Penny and illiquid stocks

Low-priced and less-traded stocks may have limited buyers and sellers, wider bid ask spreads and sharp price movements. You may not be able to exit at your expected price.

Leveraged F&O positions

Futures and Options may involve leverage, margin requirements and substantial losses. Beginners who are not yet familiar with derivatives should avoid taking positions simply because the session is short or the occasion feels auspicious.

Overtrading

Every trade may involve brokerage and other applicable charges, as well as market risk. Decide in advance what you want to trade and avoid placing orders just to participate in the session.

How to Manage Risk During Muhurat Trading

Set a budget before the session

Decide in advance how much you will invest, and keep it to an amount you are comfortable holding even if prices fall.

Use limit orders

The market order may execute at a price different from the one you last saw if the market moves before execution.A limit order lets you specify the maximum price you are willing to pay when buying or the minimum price you are willing to expect when selling. However, a limit order may not be executed if the market does not reach your price. You can read more about how order types work before the session.

Plan your exit for intraday trades.

If you trade intraday, decide your exit price and stop-loss approach before placing an order. A stop-loss order can help manage risk, but it does not guarantee execution at the specified price during a fast-moving market. Read our guide on stop losses and position sizing for more information.

Keep your account ready.

Log in ahead of the session and check your available funds, holdings and order settings. If you plan to sell delivery holdings, check whether your account requires sell authorisation through TPIN/e-DIS or whether DDPI is already in place.

Common Doubts About Muhurat Trading

Is Muhurat trading profitable for everyone?

No. Muhurat trading doesn’t guarantee profits. Prices may rise or fall, and past market movements do not indicate future results.

Can I sell shares during Muhurat trading?

Yes. You can buy or sell shares during the session, just as you would on a regular trading day, subject to the applicable rules.

Are charges different during Diwali Muhurat trading?

The same brokerage and statutory charges that apply to regular trades generally apply to trades placed during the session. Check your broker's current charges before placing orders during Muhurat trading.

How mastertrust Supports Muhurat Trading

mastertrust lets you take part in Muhurat trading through its platform on mastertrust.co.in. You can place orders, track prices and check your funds and holdings in one place.

Final Thoughts

Muhurat trading is a short, festive session that follows the same market rules as any other trading day. Prices can move quickly, and gains are not certain.

Set a budget, focus on stocks you have already researched, consider using limit orders and understand the risks before placing a trade. During  Diwali Muhurat trading, make decisions based on your financial goals and research rather than festive excitement.

Frequently Asked Questions (FAQ)

1. What is Muhurat trading?

Muhurat trading is a special trading session held by NSE and BSE on Diwali to mark the start of a new Samvat year.

2. When is Diwali Muhurat trading in 2026?

Diwali falls on Sunday, 8 November 2026, marking the beginning of Samvat 2083. Recent reports state that the equity Muhurat trading session is scheduled from 2:20 PM to 3:30 PM, with a pre-open session from 2:05 PM to 2:20 PM as per the announcement by NSE and BSE. 

3. Are trades during Muhurat trading settled normally?

Trades executed during Muhurat trading are subject to the applicable settlement rules. Intraday positions are also subject to the broker's square-off policy and product-specific conditions, so check these before placing an order.

4. What should beginners buy during Muhurat trading?

Beginners can consider  stocks they already understand or buy index ETFs depending on their financial goals and risk tolerance. Any purchase should be based on your own research and risk appetite and not just the occasion.

5. Is Muhurat trading risky?

It can be. Liquidity and price movements vary across stocks, and prices can move sharply in some securities. Set a budget, understand the order you are placing and consider the risks before trading.

6. Can I take part in Muhurat trading with mastertrust?

Yes. You can buy or sell stocks during the session through the mastertrust platform, subject to the exchange timings and applicable rules.