Muhurat trading 2024: Expert tips to maximise your Diwali returns

The festive season brings Muhurat trading, a unique one-hour session steeped in tradition and optimism. This brief session, held to mark the beginning of a new Samvat year, attracts lower trading volumes and less volatility, making it a favourable time for tactical positioning rather than high-paced trading.
Muhurat trading is a unique session conducted by Indian stock exchanges on Diwali, rooted in the belief that this “auspicious hour” is a time to attract prosperity. Many investors, traders, and stockbrokers believe that trades made during this time bring good fortune and mark the beginning of a new and successful financial year. The tradition goes beyond economic gains, as it symbolises the beginning of new ventures with a hopeful outlook.
While the markets tend to be steady during this time, savvy investors can still employ strategic moves like the butterfly options strategy. For many, the focus is on cautious engagement, not aggressive plays, especially as markets are currently in a corrective phase.
One popular method for this session is the butterfly options strategy. This approach is ideal for those who want to limit their risk while keeping a chance for potential gains. The butterfly strategy involves setting up options in a way that profits if the market remains steady, which is typical of Muhurat Trading. The setup includes the following steps:
This arrangement creates a “butterfly” shape on the options graph, letting investors profit if the market stays within a certain range, making it a low-risk approach with a defined reward.
Puneet Sharma, CEO and Fund Manager at Whitespace Alpha, summarised the approach: “The butterfly strategy during Muhurat Trading lets you engage with the market while maintaining a balanced approach. It’s not about chasing wild returns—it’s about smart positioning, exactly what we focus on at Whitespace Alpha.”
Not everyone views Muhurat Trading as an opportunity for complex strategies. Many investors prefer a straightforward, sentimental approach. Trivesh D, COO of Tradejini, explained, “When it comes to Muhurat trading, there isn’t really a particular strategy to follow—it’s more about tradition than profits. Investors tend to use this symbolic session to make small purchases in stocks they’ve been watching, rather than engaging in active trading or making big plays. It’s a time-honoured practice, and many simply buy a few shares to mark the occasion, with a focus on sentiment over immediate returns.”
While some investors focus on Indian markets during this session, others consider diversifying their portfolios with international stocks. Shlok Srivastav, Co-founder & COO of Appreciate, sees potential in global tech stocks as the Indian market experiences volatility. He pointed to Meta’s promising performance, highlighting its robust revenue growth and future plans.
“Meta delivered an over-the-top second quarter, with revenue up by 22% year-on-year, and net income rising 73% to $13.46 billion,” said Srivastav.
“Meta’s advancements in AI-driven search engine technology could reshape the market, giving investors an opportunity to diversify with a strong performer,” he added.
Srivastav added that Meta’s recent performance has garnered enthusiasm among investors. “Meta’s 1-year returns are approaching 100%, and its 6-month returns are over 30%.” With the company set to release its third-quarter results soon, which are expected to reflect over $40 billion in revenue, Meta is attracting investors interested in steady global growth.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)