How is the NSE/BSE Stock Open Price Determined?

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HOW IS THE NSE/BSE STOCK OPEN PRICE DETERMINED?
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FEATURES OF NSE STOCK OPEN PRICE

• The opening price of the stock is price at which
  a first trade take place when NSE opens for the
  day.
• An opening price of the stock is not equal to its
  previous days closing price.
• Buy Orders by Buyers and Sell order by sellers
  determine the NSE Stock Opening price.
• Demand and supply for a stock is the major factor
  on which the stock opening price is determined in
  NSE market before we tell you how the NSE / BSE
  stock open price are determined, we should know
  the NSE market timings and what happens during
  the same.

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NSE MARKET TIMINGS

• The Market timings can be divided in to four
  parts
• 1) Pre-open Session (900 AM to 915 AM)
• 2) Regular Trading Session   (915 AM to 330
  PM)
• 3) Closing Price Calculation Session   (330
  P.M. to 340 PM)
• 4) Post Closing Session  (340 P.M. to 400
  PM)

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1)  PRE-OPEN SESSION STOCK PRICE
DISCOVERY

• NSE/BSE Stock open Price determined in the
  pre-open session, so we should study the pre-open
  session in detail. We at A1 Intraday tips have
  given in-depth information about Pre-Open session
  that is easy to understand for beginners in the
  stock market too.
• 2) REGULAR TRADING SESSION
• (915 AM to 330 PM) Normal trading take place
  during this session. Trade take place depending
  on the order places by buyer and sellers.

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3) CLOSING PRICE CALCULATION SESSION

• (330 P.M. to 340 PM) Closing price is
  calculated based on 30 minutes weighted average
  price from 300 pm 330 pm. during this
  session.
• 4) POST CLOSING SESSION
• (340 P.M. to 400 PM) Similar to pre-market
  orders, post-market orders are allowed only for
  equity trading. The post-market session or
  closing session is open from 340 PM to 400 PM.

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PREOPEN MARKET SESSION

• Preopen market session is divided in to three
  sessions.
• ORDER ENTRY SESSION  
• The First session takes place between 0900 AM
  Till 0908 A.M. both Market and limit orders can
  be placed, modified or cancelled during this
  Pre-open-session.
• PRICE DISCOVERY SESSION 
• This session happens between 0908 till 0912
  am, Price discovery happens during this session
  as both buy order and sell orders are matched
  during this session.

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• TRANSITION SESSION  
• This session is the final session of just 3
  minutes that start at 0912 and ends at 0915,
  when the normal market opens for trading. This is
  the transition period from pre-open session to
  normal market.

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HOW THE OPENING PRICE OF THE STOCK IS DETERMINED?

• Pre-open session is a 15-minute session in NSE
  market (900 AM to 915 AM), which helps to get
  the opening prices of stocks traded in NSE.  It
  is basically the period of trading activity that
  takes place just before the regular stock
  market session. During the pre-open market session
  , system takes all orders that are executed and
  then arrives at an equilibrium price. 
• The calculation of prices is completely
  automated, software driven and anonymous at both
  BSE and NSE, and the price is calculated by
  electronically matching bids and offers for a
  particular share recorded an electronic limit
  order book (ELOB).  The equilibrium price is the
  price of the stock that is derived based on the
  demand and supply of the stock during that time.

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• NIFTY 50 and SENSEX 30 stocks at NSE and BSE respe
  ctively, have been enabled for trading in
  the Preopen market session by the exchanges.
• We have provided in depth information about how
  the opening price of the stock is discovered
  during the pre-market session. This is very
  important for traders as they are clear of the
  happenings in the NSE market.
• If you are looking for the top intraday trading
  tips A1 Intraday Tips will help you to gain
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  at 07506090788 / 07600797534.

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