Muhurat Trading Session - Samvat 2077 [14th November, 2020]

General
1

A Muhurat trading session is conducted by exchanges every year on account of Diwali - Lakshmi Puja.

Before the advent of electronic trading in the stock markets, trading would only take place in the designated trading halls of stock exchanges. Nobody apart from stockbrokers and their registered assistants would be allowed entry into the trading halls. Clients would have to stay outside the hall and get instructions/information relayed to the stockbroker with the help of the brokers’ assistants.

However, on Muhurat trading day, stockbrokers could also invite some of their clients and friends into the trading hall to witness the open-outcry trading. One would be encouraged to buy a stock to mark activity and welcome luck for the next year.

Check this post on Tradingqna from a couple of years ago to read more about the significance of Muhurat trading.

Muhurat trading this year for Equities, Equity F&O, Currency F&O, and Commodities will be conducted on Saturday, November 14, 2020.

As a thank you for the continued support from all of you for the last Samvat (Hindu calendar year), we will be waiving off all brokerage charges on this day. Zero brokerage on all Intraday, F&O, and commodity trades.

Market Schedule Start Time End Time
Block deal session 5:45 pm 6:00 pm
Pre Open * 6:00 pm 6:08 pm
Normal Market 6:15 pm 7:15 pm
Call Auction Illiquid session * 6:20 pm 7:05 pm
Closing Session 7:25 pm 7:35 pm
*Random closure in last one minute

All MIS, BO, CO positions will be squared off 15 minutes prior to market closing. After Market Orders(AMO) will be collected until 5.57 PM for Equities and 6.10 PM for F&O on November 14th to be placed in the Muhurat trading session.

Please refer to the circulars from NSE and BSE for more information.

2 Likes
2

What is call auction trading ?
Who can trade in it ?
How to trade in it during normal trading days ?

3

You can learn all about Call Auction here.

4

Can u pls tell me a few stocks scrips names trading in this category?

5

You can check this section on NSE website.

6

Sorry for asking off the topic
Can we trade options in muhurat trading
i. e can we buy options suppose on friday and sell at muhurat trading on sunday lets say
Or can we buy option in muhurat trading and carry forward it till next session?

7

Yes, you can do all the above. The Muhurat Trading session is similar to normal market hours, just that this is short session held on the day of Laxami Puja.

8

@mohitmehra, @ShubhS9,

Can we buy and redeem Mutual Funds on Coin on Diwali Muhurat Trading hour on 14th November 6:15 pm to 7:15 pm? Cut-off timing if so, and will the NAV be applicable for the same day only? Please guide.

9

You will not be able to purchase or redeem Mutual Funds, the cut-off time will remain the same ie. 1:30 PM.

10

I have a doubt. 14 Nov is Saturday. Usually, market is off on Saturdays. You mentioned MF buy/redeem cut-off timing on Coin on 14th Nov would be 1:30 pm while the Diwali Muhurat trading hour is 6:15 pm to 7:15 pm when the market would remain open. So how does it work then?

11

What I wanted to say was there will be no change in cut-off time for Mutual Funds, Saturday is not a working day so your order will not be processed, it will be processed on next working day.

12

You have still not answered my question.

The way you can buy/ sell an equity delivery during the Diwali Muhurat trading hour and the stock price during that one hour matters for profit/ loss. Likewise, can you buy/ sell Mutual Funds too during the trading hour?

To help you understand my question better -
I have stock X. Let say during the Muhurat trading hour, the price of X is Rs 100. I can buy or sell for that price.

Similarly, I have Mutual Fund Y. Can I buy/ sell units of Y also during the Muhurat trading hour and the same day’s NAV is applicable? Because The underlying price of stocks in Mutual Fund Y and thus it’s NAV would be affected during the Muhurat Trading hour.

Or
Muhurat trading doesn’t apply to Mutual Funds?

Need to understand this.

13

No, you will not be able to purchase or redeem Mutual Funds during Muhurat Trading session, you can place orders but these will be processed only on next working day.

14

Does this means, the NAV of a MF on Friday 13th Nov, 2020 EOD may be different from the NAV of the same MF on Saturday 14th Nov, 2020 EOD? Because the underlying stock prices in the MF have changed during the Muhurat Trading hour which would reflect in the NAV.

But as a Mutual Fund holder, you won’t be able to participate on Muhurat Trading day. If you buy or redeem MF on Monday 16th Nov, 2020 the NAV of Monday would be applicable. So essentially, a mutual fund holder would miss taking action on NAV of 14th Nov 2020.

Please correct me if I am wrong.

15

Let me confirm this. Depends on whether the MFs participate during the session

16

Sir …i have some doubts :-

  1. Is the price of the scrip will move in the first 45 min of the call auction session as no order matching is takes place or is it will move is last 8 min of order matching session?

  2. The scrips which are listed in the call auction session are available for trading in normal market hours after the buffer period of the call auction session… Or the trading for that scrip will stop for rest ofbthe day?

I always appreciate your replies :pray::pray:

17

But sir the brokerage fee off in the occasion of muhurat trading will not be realised… right …because it will only off for mis orders…??

18

No idea about this, haven’t really looked at this section :slightly_smiling_face:

The scrips in Call Auction can only be Bought or Sold through periodic auction sessions, normal market like trading doesn’t happen in these stocks. Exchange conducts periodic call auction sessions of one hour each throughout the trading hours from 9:30 to 3:30 to facilitate buying and selling in these illiquid stocks.

Yes, there will be no brokerage charged on any trades done on the day of Muhurat Trading session.

20

How does muhurat trading affect options ? What if Nifty swings too much on the day of muhurat trading ? Can we get any data for how much nifty moves on muhurat trading in previous years ?

21

The effect on F&O prices will be the same as movement of Nifty has during normal trading hours. You can find historical data on NSE website.