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Calendar & seasonalityPositionalNIFTYlow complexity

Diwali Muhurat long

A calendar trade built around Muhurat trading, the short special session NSE holds on Diwali to mark the start of the new Samvat year. The default version buys NIFTY futures at the close of the last regular session before Muhurat and sells at the end of the Muhurat hour, betting on the festive optimism often said to lift the market. Two other versions hold through the month before Diwali, or only during the session itself.
Buys NIFTY futures at the close before the Diwali Muhurat trading session and sells at the end of that one-hour session, testing the festive-optimism idea.
Market viewCalendar or event timing
TradesNIFTY near-month futures, 1 lot
RiskOpen-ended (loss not capped by the structure)
CapitalFutures margin
SuitsBeginner
Trades a month0.1
Typical hold23.3 hours
Profitable months0 of 12
Longest losing run1 trades
Made money inNot enough trades to judge (one per year)
Lost money inThe 2025 Muhurat session, the only test, lost
Default settings
Symbol
Variant
Pre window days
Session after
Max session hours
Roll time
Lots
Backtest this strategy →Change any setting, pick your own period and run it in the Quantsapp web app. Backtesting is part of the Max plan. Pro+ members can use it now as a free trial.
1

How it trades

What it trades
Universe
NIFTY Positional · 1 Oct 25 → 30 Sep 26
Enters
Last tick of the last regular session before the Muhurat session
Legs
BUY FUT · Near month · Near-month future, rolled at expiry · 1 lot
Exits
time Last tick of the Muhurat sessionroll If a futures expiry falls in between, close at 15:15 and rebuy the next month at the next open
Re-entry
None - once a year
Session
the Muhurat session is found in the data: a session whose first futures tick is after SESSION_AFTER and that lasts under MAX_SESSION_HOURS (it is an evening or afternoon hour, its time changes by year).
Entry
VARIANT "A" - buy LOTS at the last tick of the last regular session before the Muhurat session. "B" - buy at the last tick of the session PRE_WINDOW_DAYS trading days before the Muhurat session. "C" - buy at the Muhurat session's first tick.
Exit
"A" and "C" - the Muhurat session's last tick. "B" - the last tick of the last regular session before it.
Roll
a long that meets a futures expiry is closed at ROLL_TIME that day ("monthly roll") and re-bought on the new near month at the next session's first tick. Variant A is skipped in a year whose entry session is itself the futures expiry day (2024: 31 Oct expiry, Muhurat 1 Nov) - the expiring contract cannot be carried and the next month cannot be bought that afternoon.
2

Results

PRE-BUILT · DEFAULTS
NIFTY · 2025-10-01 → 2026-09-30 · 1 trades · before costs
Net P&L−₹26,625
Win rate0%
Max drawdown−₹26,625
Avg per trade−₹26,625
Profit factor0
Worst trade−₹26,625
3

Where it made and lost money

There is no market-condition evidence to speak of: the test window holds a single Muhurat session, so the default variant made one trade, held for about a day. That long lost ₹26,625 before costs. A seasonal rule like this produces one observation a year, which means no split by volatility, session type or trend can be judged, and even several years would leave only a handful of trades. The loss shows how the trade is exposed: it carries a full futures lot through the festive break and into a thin special session, so whatever happens in between is taken at the Muhurat price.

The same trades, split by the market conditions around each entry, before costs.
4

About this strategy

  1. Detect the Muhurat session from the data: a session that starts after 12:00 and lasts less than 2.5 hours.
  2. Variant A (default): buy one lot of NIFTY futures at the last tick of the last regular session before Muhurat.
  3. Sell at the last tick of the Muhurat session.
  4. Variant B: buy 20 sessions before Muhurat and sell at the close of the last regular session before it.
  5. Variant C: buy at the first tick of the Muhurat session and sell at its last tick.
  6. If a futures expiry falls inside the holding period, close at 15:15 that day and buy the next month at the following session's open.

Why traders use it

Muhurat trading is a tradition: many investors place token buy orders for good luck, and market commentary often reports that the session ends higher more often than not. The pre-Diwali weeks are also linked with festive spending and positive sentiment. Traders turn these beliefs into simple rules to see whether the pattern holds when tested on real prices, and a futures long is the most direct way to express it.

Works best whenIn principle, years when sentiment and global cues stay positive over the festive break, so the Muhurat session closes above the previous regular close. The single trade in this test did not get that.
Struggles whenYears when markets weaken over the festive break or news arrives before the Muhurat hour, as the one trade in this test did; with a single observation, no condition can be judged.

The year in plain words

The test window from 1 Oct 2025 to 30 Sep 2026 contains just one Muhurat session, on 21 Oct 2025, so the default variant made a single trade. That long lost ₹26,625 before costs and ₹26,867 after ₹20 per order and bid-ask slippage. Diwali 2026 falls on 8 Nov 2026, after the window ends, so there was no second observation. One trade cannot confirm or reject a seasonal effect: it only shows that the festive long can lose, and by a sizeable amount for one lot.

What the settings do

VariantA holds from the last regular close into the end of Muhurat; B holds through the weeks before Diwali; C holds only during the Muhurat hour.Pre window daysFor variant B, how many sessions before Muhurat the long is bought. A longer window captures more of any pre-festival run but adds more market risk.Session afterA session starting after this time is treated as a possible Muhurat session, since its timing changes from year to year.Max session hoursA possible Muhurat session must also be shorter than this, which separates it from a normal full day.Roll timeWhen a long is closed on a futures expiry day before being rebought in the next month.

Risks

  • There is only about one observation a year, so any result is mostly luck rather than evidence.
  • The long is held overnight and over the holiday break, exposing it to a gap at the Muhurat open.
  • Muhurat is a thin, one-hour session, so its closing price can be far from a fair level.
  • Futures need full margin, and one lot of NIFTY moves thousands of rupees on a modest change.

Who it suits

Traders curious about festival seasonality who want to see it tested on real prices, and who treat the result as a single yearly event rather than a regular income source. It needs futures margin and acceptance of overnight risk.

5

Questions traders ask

What is Muhurat trading?

Muhurat trading is a special one-hour session held on Diwali to mark the start of the new Samvat year. Its timing varies year to year; in 2025 it ran in the afternoon of 21 October. Many investors place small symbolic buy orders in it.

Does the Diwali Muhurat long make money?

In this backtest window, 1 Oct 2025 to 30 Sep 2026, there was only one trade, and it lost ₹26,625 before costs and ₹26,867 after ₹20 per order and bid-ask slippage. A single observation says very little, and past results do not guarantee future ones.

Why are there so few trades?

Diwali happens once a year, so each variant can trade at most once a year. The 2026 Muhurat session falls on 8 Nov 2026, outside this test window. Seasonal patterns like this need many years of data before any conclusion is meaningful.

What is the difference between the three variants?

Variant A holds the long from the last regular close into the end of Muhurat. Variant B rides the weeks before Diwali and exits before Muhurat. Variant C trades only the Muhurat hour, from its first tick to its last.

6

Before you rely on it

WATCH OUTabout one observation a year; the Muhurat session is thin, so its last print can be far from a fair price; results are cost-sensitive (STT on a one-hour trade). Gross of costs.
WHERE THE RULES WERE UNCLEAR · OUR CHOICESHit rates quoted range from 15/19 to 10/10; the pre-Diwali window is undefined in one source - variant B uses 20 trading days (spec). The Samvat-year (12 month) variant has too few observations and is not built. Variant C is the "positive Muhurat-day return" finding traded as a one-hour long.
Also known asmuhurat tradingsamvatpre-diwali rallydiwali effect
Backtests run on historical NSE data with fills at the last traded price. "Before costs" excludes brokerage, taxes and slippage. Quantsapp is not recommending any strategy; it is just a backtesting utility. Past results are not a promise of future returns.

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