While the market will remain shut for normal trading, the special window will be operational. Trade modifications will be permitted until 2:55 pm. All trades executed during the session will result in settlement obligations, similar to regular trading hours.
For many investors, Muhurat Trading is considered an auspicious beginning to the new Samvat year in the Hindu calendar. Historically, Dalal Street has witnessed enthusiastic participation on Diwali, with both seasoned investors and retail traders entering the markets to make token purchases of equities as a symbol of prosperity.
Market volumes during Muhurat Trading are typically lighter than in regular sessions, but sentiment is usually positive.
In past years, the benchmark indices — Sensex and Nifty — have often closed the Muhurat session in the green, reflecting festive optimism.
This year’s Muhurat session comes at a time when markets have been volatile for the past few months. So far this year, Indian markets have languished at the bottom, delivering only a 1.9% return in dollar terms.In comparison, Japan’s Nikkei has rallied 22.5%, China’s Shanghai Composite has gained 21.4%, and Brazil’s Bovespa has surged 38.5%.FII sentiment has also been bearish, with Rs 1.4 lakh crore in outflows. Analysts said the consistent FII selling trend can be attributed to the superior performance of developed markets and currency concerns.
Trade tensions with the US have added to the pressure, creating policy uncertainty that has heightened investor caution and accelerated portfolio shifts toward cheaper emerging markets.
For investors, the session on October 21 is expected to be more than just symbolic. It offers an opportunity to mark the festive start to the new year with fresh bets, even as broader market cues continue to drive sentiment in the days ahead.
Outlook
Analysts currently maintain a constructive view and believe the ongoing corrective pullback presents a tactical buying opportunity within the broader uptrend.
“On the upside, the index faces resistance at the 25,500–25,600 zone. A sustained breakout above this supply zone could trigger further upside in the coming weeks,” said Bajaj Broking.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
as a Reliable and Trusted News Source