Muhurat Trading: How to Make Smart Trading Plan for Diwali 2025?

PNN
New Delhi [India], October 17: As we all are waiting to celebrate Diwali with our loved ones, there are enthusiastic investors who are looking for Muhurat trading. This year, we'll see this trading session happening in the afternoon from 1:45 PM to 2:45 PM on October 21, 2025 (Tuesday).
But the big question remains of how to make the most from this auspicious trading session? This blog will provide you with all the answers on how you can pick the stocks, set up trades, and make it a really Happy Diwali.
8 Tips for Successful Muhurat Trading in 2025
Firstly, you need to open free Demat Account with SMC Global Securities to ensure a faster and smoother trading experience. Here are the 8 important tips you need to keep in mind while entering the Muhurat trading in 2025:
1. Decide Between Trading and Investing
The first and foremost thing you need to decide before going for Muhurat trading is to choose between trading and investing. While one style requires faster execution and early gains, the other benefits from fundamental and compounding strength. At this time, you can trade and invest across equities, commodities, currencies, and F&O.
It is important to pre-decide on which stocks and futures, and options (F&O) you want to trade and invest. This provides a clear roadmap to execute the order in the short duration of 1-hour Muhurat trading.
2. Go with Large Cap Stocks
Large-cap stocks are ranked among the top 100 companies based on market capitalization. As Muhurat trading time spans only for 1 hour, these stocks provide sufficient liquidity to execute buy and sell orders.
If you go with small-cap or penny stocks, then they have thin volumes and lower liquidity. This can lead to loss of opportunities and sharp fluctuations, which can erode your invested capital. However, the blue-chip or quality stocks have strong fundamentals and face lower volatility, making them an ideal choice for Diwali 2025 trading.
3. Avoid Cyclical Stocks
Cyclical stocks are the ones that are closely linked to economic performance. They tend to be highly volatile, as their prices can fluctuate sharply due to policy changes, geopolitical developments, or economic cycles. Examples include pharmaceuticals, real estate, and automobile stocks.
On the other hand, non-cyclical stocks, such as FMCG and utilities, have more predictable business models, making them relatively safer choices. However, it is important to conduct specific stock analysis, as not all non-cyclical stocks give stable returns.
4. Be Ready with Your Stock Analysis
Stock analysis is something that you need to do every time you execute a buy and sell order. For fundamental analysis, you can prepare a list of stocks that have a reasonable valuation in their respective industry, have a stable ROE, and have a history of delivering stable returns and regular dividends.
Since this is also the time for second-quarter results announcements, you can also look for companies that have shown a sharp turnaround in profits or announced major investment and expansion plans for the coming quarters.
5. Stick to Your Trading Plan
In the Muhurat session, trading required sharp actions in just one hour. For this, you can prepare the list of stocks based on moving averages, RSI, MACD, etc. For example, if a stock's 50-day moving average crosses above its 200-day average, it may indicate a bullish trend.
Identifying such patterns a day before the Muhurat trading can help you save time, and you can mark them on your stock alerts watchlist for faster updates. You will directly get the notification when the stock breaks out of such patterns, and you can grab the opportunity at the right time.
6. Invest in Gold and Silver ETFs
Gold and silver are breaking all the records this year, and the festive season is considered to be auspicious to invest in the yellow and white metals. As the prices of these metals are touching the sky, it might be difficult for everyone to buy physical gold or silver this year.
With gold and silver ETFs, anyone can start investing in these assets just by buying one unit of the fund. You can consider allocating at least 10% - 15% of your investment in these metals to diversify your portfolio.
7. Keep a Check on Your Budget
It is a time when your monthly budget can get haywire for buying new clothes, gifts, sweets, and much more. So, the amount you usually keep aside from your monthly income for investments may get redirected towards festive spending.
To avoid such a situation, you can keep aside the amount you wish to deploy for Muhurat trading. You can also use the dedicated apps to keep track of your spending activities and stay aligned with your budget.
8. Avoid Any Fake Stock Tips
During Diwali, you may see an endless number of reels and posts on unauthorised social media handles providing you with stock tips. It is crucial to distinguish the fake stock advice from the honest one, which is backed by research analysts and brokerage houses.
For this, you can visit the respective sites of the brokerage and research firms and study their detailed report. However, you should be ready with your trading plans and list of stocks to execute timely trades on the Diwali special Muhurat trading session.
Conclusion
For Muhurat trading, it is important to follow one mantra: "Every successful execution requires prior planning." From picking quality stocks to investing in gold and silver ETFs, this is a celebratory time for every investor. To bring in the new financial year, take your first step towards investing and keep reading SMC Global Securities blogs to stay updated on stocks, mutual funds, and more.
Disclaimer: This article is only for informational purposes and does not intend to advise or recommend any sort of investment or platform.
About the Author: I am Sheetal Goel, working as a content writer at SMC Global Securities. I hold 5+ years of experience in financial research and writing. As an Economics graduate and MBA (Finance), I possess the right skills to craft valuable blogs and make finance easy for readers.
Disclaimer: This is a press release for informational purposes only and should not be considered a substitute for professional advice or decision-making. Investing in stocks includes financial risks, and past performance is not indicative of future results. Readers should conduct their own research or consult with a qualified advisor before making any decisions.
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