Nifty always forms a daily red candle from last 13 years on Muhurat session 🪔

Industry Insights
1

Happy Diwali to all my friends and fellow traders here at TQnA,

Buying shares on muhurat day is considered as an auspicious thing for Investors and looking at the past 14 years data, for short selling traders at the open.

The strategy of sell at the opening and cover back by the EOD worked all these years and looking at the way SGX is shaped up today, unless, our investors are in a completely different mood, it seems like history may repeat itself.

13 Consecutive daily red candles (!!!) on muhurat day

Date Prev day close Open Gap up/down Close % return Diwali to Diwali return
28/10/2008 2524.2 2526.2 2 2684.6 6.35% -55.71%
17/10/2009 5142.15 5159.35 17.2 5141.8 -0.01% 104.23%
05/11/2010 6281.8 6321.85 40.05 6312.45 0.49% 22.53%
26/10/2011 5191.6 5214.95 23.35 5201.8 0.20% -17.51%
13/11/2012 5683.7 5689.7 6 5666.95 -0.29% 9.10%
03/11/2013 6307.2 6332.05 24.85 6317.35 0.48% 11.29%
23/10/2014 7874.5 7997 122.5 7995 1.53% 26.29%
11/11/2015 7783.85 7838.8 54.95 7825 0.53% -1.98%
30/10/2016 8638 8672.35 34.35 8625.7 -0.14% 10.63%
19/10/2017 10210.85 10210.35 -0.5 10146.55 -0.63% 17.73%
07/11/2018 10524 10552 28 10530 0.06% 3.35%
27/10/2019 11583.9 11662.25 78.35 11627 0.37% 10.52%
14/11/2020 12719.95 12823.25 103.3 12780.25 0.47% 9.96%
04/11/2021 17829.2 17935.05 105.85 17916 0.49% 39.86%

Source : SouravSen Guptal’s twitter

  • Other than that, We have had 4 negative and 10 positive closes from previous closing in last 14 years

  • As you can see, in absolute terms nifty is up from 2526 to 17600 levels in last 14 years.

  • We have only had 3 negative diwali to diwali returns in last 14 years - that’s a good win rate if you ask me.

Summary

  • If we are day trading today, shorting at the opening seemed to have given returns.

  • If we buy shares for the medium to long term today, it has yielded pretty good returns in the past

Once again, HAPPY DIWALI FOLKS :stars: :milky_way: :fire: :fireworks: :sparkler: :diya_lamp:

5 Likes
2

Don’t day trade on muhurat. It’s not worth it.

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3
  1. People believe in Buying on Muhurat.
  2. People believe in Profit booking on Muhurat.
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4

if everyone buys on muhurat who will provide liquidity?

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5

For me, it is just another day.

2 Likes
6

Few mistakes here:

a) For 2008, the data apart from ‘open’ is incorrect.
b) For 2013, the previous day close is incorrect.
c) In 2014, it was on 23/10, not 22/10.
d) For 2016, the previous day close is incorrect.
e) In 2018, it was on 7/11, not 6/11.

1 Like
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Thanks for pointing out Sachin.