How is the NSE/BSE Stock Open Price Determined? - PowerPoint PPT Presentation

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How is the NSE/BSE Stock Open Price Determined?

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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. – PowerPoint PPT presentation

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Title: How is the NSE/BSE Stock Open Price Determined?


1
HOW IS THE NSE/BSE STOCK OPEN PRICE DETERMINED?
2
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.

3
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)

4
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.

5
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.

6
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.

7
  • 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.

8
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.

9
  • 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
    maximum profit with minimum risk by providing the
    free intraday tips. For Free Trial you can
    register here to avail our Free Intraday Tips for
    2 days. You can also download A1 Intraday Tips
    mobile app here. For more information call us
    at 07506090788 / 07600797534.

10
CONTACT US
  • Phone Number 7506090788 / 7600797534
  • E-Mail ID info_at_a1intradaytips.in
  • Timing Monday To Saturday
  • WEBSITE
  • http//www.a1intradaytips.in/
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