Muhurat Trading Strategy: Today the holy festival of Diwali is being celebrated across the country. On this day, Muhurta trading takes place in the Indian market which is especially for one hour and on this day traders and investors buy stocks to seek the blessings of Goddess Lakshmi and bring prosperity. This Diwali, we are telling you as per expert opinion how you can achieve great trades through good strategy during Muhurta trading.
What is the strategy of market experts
Harjeet Singh Arora, Managing Director, MasterTrust, says that it is essential to plan carefully, especially within the short time frame of Muhurat trading, we have to clearly keep our financial goals in mind. Whether we are looking for short term gain or long term investment. Generally we see volatile trading sessions so deep research is very important before fixing any trade.
Keep these things in mind
One should look for companies with strong fundamentals, positive income reports and growth potential. Additionally, we can also find stocks based on technical research for short term trading options.
Take care of risk management and liquidity
Risk management is a very important part which we cannot ignore. Risk appetite in the market varies from person to person, portfolio risk for long term investment can be reduced through proper diversification. We do not advise investors to concentrate all their investments in one stock or sector. However, considering the short period of Muhurta trading, liquidity is also a big factor. Especially for intraday traders, it is better to choose stocks with sufficient liquidity to execute trades easily.
Muhurat trading, also known as auspicious trading, is a one-hour trading session held on Diwali. In the last ten Muhurta trading sessions, seven instances concluded with positive returns, raising expectations of good opportunities for traders and investors in the market.
Outlook for Samvat 2080
Keeping in mind the increasing global headwinds, the Indian market is set to maintain its current bullish momentum till Vikram Samvat 2080. Popular central banks and financial institutions have clearly shown positive outlook towards Indian markets. Strong corporate performance, strong domestic economic data and growing expectations of the comeback of the Modi government, known for its pro-business policies, seem to be setting the stage for a market rally.
FDI flow into India in the year 2014-2015 was US$ 45.15 billion, which has increased to the highest ever US$ 83.6 billion in 2021-2022. The bullish sentiment has been further strengthened by the speculation that the US Federal Reserve has ended its growth rate cycle, which has become a major factor contributing to the positive market sentiment.
Diversification in investment is necessary
Investment in equities and gold should depend on your investment goals, timeline and risk profile, but proper asset allocation in the portfolio is required. Gold is considered a safe investment property and is used as a hedge against inflation. Gold should be seen as a long term investment option rather than a short term investment. Equity markets in India and globally remain volatile but are performing better than other investment options. One should invest in equity from a long term investment perspective, the equity market can give phenomenal returns. Ideally, you should diversify your investments as per your risk appetite and your original investment plan that you have made to achieve your short and long term financial goals.
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