You may have read about Muhurat Trading, its history and the advantages of trading during this session. Every year, the time frame of the Muhurat Trading session is designated during the most fortunate hour of the day, and the timings are determined by the exchanges. This year, the session will be held on Thursday, 4 November 2021.

If you are wondering how to go about placing orders during this hour-long trading session, this article has you covered. It discusses the very basics of how to place orders, and answers if placing orders during this session differs from normal trading sessions. Trawl through and educate yourself so as to be prepared to invest during the Muhurat Trading.

This article covers:

Market schedule on Muhurat Trading

Difference between placing orders on Muhurat Trading and normal days

  • Trades performed during the session are identical to usual trades, and the exchanges’ operations remain unchanged, with the exception of their regular timings. 
  • During Muhurat Trading, all deals result in settlement obligations. When buying or selling shares, both the buyer and seller must fulfill their obligations in order for the transaction to be completed. During the settlement period, the buyer pays for the shares, and the seller delivers the shares.
  • Following Muhurat Trading on 4 November 2021, the markets will be closed on 5 November 2021, in observance of Diwali. The shares will be sent to your Demat account on 8 November 2021.
  • 10 minutes before the market closes, all MIS, BO, and CO positions will be squared off. After market orders (AMO) will be accumulated until 5:57 pm for equities and 6:10 pm for F&O to be placed in the Muhurat Trading session.

Types of orders

Here are some types of orders you should know about while placing a regular order:

  • Margin intraday squareoff (MIS) is the type of order which is used when you intend to buy and sell the stock on the same day during the same trading session.
  • In Bracket order (BO) you can trade in a range. As in you put the target price and the stop loss. This marks your bracket. Here while placing the stop loss you are supposed to input the amount you can afford to lose. If you can afford to lose Rs. 10 per share then whenever the current price of the stock falls by Rs. 10, your stop loss would get hit and your order will get booked with the loss of Rs. 10. The same goes for targets.
  • In Cover order (CO) you get more leverage, you can buy more at a lesser margin, you put a stop loss trigger so that your risk is covered.
  • Cash and Carry (CNC): Use this if you want to hold the stock for more than a day/long term investment.
  • Market (MKT): In this, you buy the stock at the current price. If you click on this option, you cannot change the price at which you want to buy the stock and the order will be placed at the current market price of the stock.
  • Limit (LMT): In this type of order, you can decide the price at which you want to buy the stock. As soon as the market price hits the prices you chose, your order will get placed.
  • Stop loss limit order (SL): If you want to curtail your loss, you must put a stop loss. For example, If you put a stop loss of Rs. 1,000, then if the price of the stock you are holding hits Rs. 1,000 or below, your stock will be sold off.
  • Stop loss market order (SL-M): In this you set the trigger price, which is the price at which your stock gets sold off around the trigger price you’ve put.
  • After market order (AMO): If you could not place an order during the Muhurat Trading session then you can place order for the next day.

Steps to place orders during Muhurat Trading

Having a Demat and a trading account are the prerequisites of starting to trade/invest in stocks. If you are planning to start investing, use Tickertape app.

Follow these steps to place order from Tickertape:

  • Visit Tickertape web or launch the app on your cell phone.
  • Make sure that your broker account is linked to Tickertape, and funds are  available in your broker account ledger.
  • Once you have researched your desired stocks, search them on Tickertape (for example, here in the screenshot of how the screen looks when we searched for the Tata Power stock).
  • When you input the name of the stock, you will reach the stock page. On this page you can see all the key metrics and investment checklist for that particular stock.
  • Click on Place order. An order details box appears, allowing you to customise your order.
  • In this popup, you may indicate the kind of order – Buy or Sell – as well as the quantity that you want to transact. The amount field is auto-populated with the stock’s quantity and Last Traded Price. Because Tickertape orders are market orders, this figure is an estimate of the ultimate buy/sell amount because the trade may be performed at a different price than what is represented above.
  • You may then opt to place an individual order for this specific stock by choosing Buy (or Sell) Now, and if you want to place more than one stock order, you can choose the basket feature. Click on ‘Add to Basket’ and transact in bulk at a later time.
  • When you click on the ‘Buy now’ option, you will be redirected to your broker account and you can review your order by clicking on ‘Review Order’ as shown in the screenshot, then click on ‘Place Order’ and the ‘Confirm’ and Voila! Your order will get placed.

Make sure you have enough funds added to your broker account ledger for the order to be processed.

Here is your guidebook on Ticketape features which you may use to start preparing for Muhurat Trading:

  • Stock screener – a tool for screening companies based on different fundamental and technical characteristics.
  • Market Mood Index – a sentiment indicator for the Indian stock market.
  • Learn – a site for learning basic financial and economic terminology, and some of the features of this platform.
  • Basket and Transactions – This feature is exclusive to Tickertape and represents a new method to trade equities. Through this multiple stocks can be purchased and sold at the same time.
  • Tickertape supports four asset classes: equities, exchange-traded funds (ETFs), mutual funds, and indices. Each of them includes an Asset Page that delves deeply into the key facts required to make sound investing decisions.
  • Tickertape also allows you to monitor and maintain your whole portfolio.

Now you know how to place an order using Tickertape on Muhurat Trading. If you are still seeking for the perfect muhurat to begin investing, Muhurat Trading 2021 can be your lucky start. Look for firms with excellent fundamentals, potential for growth, and a positive cash flow. If you are unsure about which stocks to invest in, you may begin your study using Tickertape’s Screener. It includes over 200 filters that allow you to quickly sift through a multitude of companies based on crucial key indicators.

In addition to the Screener, Tickertape also has other investment analysis tools such as comprehensive Asset Pages for Stocks, Mutual Funds, ETFs, Indices, Market Mood Index, and more.

Don’t miss out on this once-a-year opportunity! Invest during the Muhurat Trading session. Happy Diwali, and may this Muhurat Trading session bring you good fortune!

Ayushi Mishra

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