Pre-open session of NSE & BSE-How it actually works?

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You may have watched on business news channels a pre-open session for NSE and BSE from 9.00 AM to 9.15 AM during market days. But you actually know how your placed orders are executed during this session? It is very interesting and must know factor for all who are interested to invest in stocks.

Before we proceed let us look for the types of orders you can place in market. Their are two types of order placing methods. 1) Market orders-These are the orders where you have not specified any price while buying or selling. Hence such orders execute as per the availing market rates. 2) Limit orders-These are the orders where you have specified the price and quantity for buying or selling. These get executed once find the matching orders.

Pre-open session as I told above starts from morning 9.00 AM to 9.15 AM during the market days. This 15 minutes consists of mainly 3 slots.

1) 9.00 AM to 9.08 AM-Order collection period-During this period you can place the orders, modify or cancel them.

2) 9.08 AM to 9.12 AM-Order matching period and trade confirmation period-During this period placed orders are confirmed based on the price identification method called “Equilibrium price determination” or “Call auction”. Will discuss about these methods below. During this period you are unable to modify or cancel the placed orders.

3) 9.12 AM to 9.15 AM-It is called buffer period and which facilitates transition from pre-open to normal market session.

How Equilibrium Price determination or Call-auction session actually works?

Let us say with example of XYZ stock and previous days closing price of the stock is Rs.100. Now during the market pre-open session types of price and quantity reflect may be as below.

1) Scenario I-We found only one share price with highest trading quantity.

NSE-1

In above case share price with 105 have highest trading quantity with 27,500. Hence it will get executed as equilibrium price or call-auction price.

2) Scenario-II-We found two matching maximum tradable quantity for different share prices.

NSE-2

In above case we found two matching maximum tradable quantity for share price of 105 and 99. In that case minimum unmatched orders quantity is for 105 (8800) than 99 (9000). Hence in this scenario share price 105 is considered as equilibrium price or co-auction price.

3) Scenario-III-We found two matching maximum tradable quantity and same unmatched orders for them too.

NSE-3

From above table we found that for the share price of 105 and 99 we have matching maximum tradable quantity and same unmatched orders. In such scenario previous days close is come into picture.  Here I told earlier that previous days close for XYZ is 100 which is nearer to 99 than the 105. Hence in above case 99 is considered as equilibrium price or call auction price.

4) Scenario IV-We found two matching maximum tradable orders with same unmatched orders and share price are equally distanced from previous closing price of share XYZ.

NSE-4

In above case we found that share price 101 and 99 have same maximum tradable quantity and same unmatched orders. Also share prices 101 and 99 are equally distanced from previous days close. In such case previous days close share price 100 is considered as equilibrium price or call-auction price.

Points to remember regarding Pre-open session.

1) After finding the equilibrium price or call-auction price all market orders are executed at the equilibrium price and all no executed limit orders are carry forwarded to open market as it is.

2)  Price band of 20% shall be applicable on the securities during pre-open session.

Any comments or suggestions?????

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306 Responses

  1. Sir
    I want to know whether matching of orders will take place during 9:00am to 9:08am or this period is only for placing orders?

  2. I am holding shares of a company which has gone out of NSE/ BSE. What is the disposal for them.
    or
    Can I wait for the re entering of the same company NSE/BSE in future.

  3. I want to understand the priority of order in the below condition.

    During a pre-market value one places a buy order with price set to market value. But, unfortunately it’s not executed at 9.08 am due to high demand and low supply. also the share gets locked at upper circuit and there a many pending limit orders at pre-market (9.08am) session.

    Now, at 9:15, I know that all market orders will be pushed as limit orders with opening price value. But, real question is which has the highest priority? The order that was places as market order during pre-market or the pending limit orders with buy price as upper circuit price ?

  4. Sir my question is, in Pre market session(in ipo) share is fistly listed on issue price ? if yes then why this price not consider as Opening price ?

  5. Hi sir hw r u…my question is can I buy share at 9am for intra day? and is there any advantage of gap up opening after buying share at 9am for intra day ?? Or I will able to buy at 9:15 only ?..plz leave comment

  6. Hello Sir
    What is the difference between “Buy and Sell” and “Demand and Supply”. I tend to think Buy = Demand and sell = Supply. How there are different. This may be a very basic question. Kindly explain
    Regards

  7. Hello Sir,
    Very well explained!! Thank you for that.
    Will you please don’t mind to answer my question.

    How to make sure that order is executed first in the day?
    Like by placing After Market Order or Pre-Market Order?
    Which is given higher priority?

    Thank you in advance!

    1. Sir, my question is: for ex: on 14-08-2020 Pre open market price declared as Nifty50 11.353.30 52.85 (0.47%) Advances:44 Declines: 4 Unchanged:2
      Here Nifty50 open price is 11353.30 and the difference price from Yesterday’s Close Price is 52.85 here they mentioned in % as 0.47%,
      i want to know this percentage calculation method/ pattern. If any knows about this please mail me hmsgdg@gmail.com or on whatsapp 9481056949
      Thanking you
      Prakashrao
      9481056949 karnataka

  8. Good morning sir, during 9 to 9.08 am only we can place orders in stock market during pee market session. After 4 min trade confirmation happens. Then why there is increase number of trade during first 8 min.

    1. At what basis order will executed.. i asking in terms of priority lets say 100 is uc and 10-15 order have been placed on previous day @market than
      which order executed first?

  9. Sir,
    Nice article.

    Could you please explain below point.

    2) Price band of 20% shall be applicable on the securities during pre-open session.

    Another Query: After Market Order with Market Price (not AMO with LIMIT), How it is calculated in pre order session.
    Which has highest priority?

    1. Dear Smruti,
      It means the bid and offer price must not be more/less than 20% of the previous day’s closing price. “Which has highest priority?”-The price discovery will continue as usual irrespective of the price you set the order.

  10. Thanks for explaining things beautifully, it cleared lot of doubts. Here I have one more

    Does FIFO applies on pre-market session and later on AMO orders or vice versa?

  11. Sir,
    Your post is very informative.I have 3 query.
    1.some shares allotments takes place place even in upper circuit.What is the logic for allotment is it FIFO basis or some other.
    2 Is there any difference between ami orders and pre orders in allotment.
    3 Is there any difference between limit orders and market orders while allotment in uc.

  12. Wonderful explanation ! Thanks a lot.

    I have a query i actually placed a market order in between 9 to 9.05am and then cancelled and placed a limit order for it before 9.08am, but, even after that, my order got executed at the equilibrium price.
    Is this also a scenario and can happen or should i contact my broker if its an issue ?

  13. That’s the beautiful explanation. Many thans for that. Here I have one more query.

    Does the pre market ordered prevails over the pending orders of last day. I mean what we bid after market

  14. Hi, I have understood very clearly on the four scenarios. I have two questions.

    1. Apart from these four any other scenarios are applicable for the calculation of Equilibrium price?

    2. Is share price only only increase when buy happens or any other source that affect for raise?

    Thank you for the Help.

      1. Hi

        Thank you so much for quick response. So Demand means Buy and Supply means Sell?. If not , can you please explain?

  15. Hi, firstly I sincerely thank the author for this post and easy explanation, I really appreciate your efforts, I will come back again and again to check for updates on this blog. But I have a small request will you please share the source of this information?

    1. Sir, I didn’t understand the concept as the images you quoted are not visible. Please, if can check it once more.

      Thanks in advance.

  16. Beautiful explanation.. Cleared my long pending query!! I think that I will be visiting more often!!
    Keep enlightening the people.. A lot of us need it. 🙂

  17. You have explained it as simple as possible. Your effort is greatly appreciated. Thank you very much Sir.

  18. 1. In scenario 2 quantity of demand and supply at 99 is the same as in scenario 1. This could be an error which has been corrected in scenario 2. I understand during pre-open only market orders can be placed. Then how do you match demand and supply at different price levels?

  19. I don’t understand how you get 36500 as demand and 12500 as supply in last row 4th and 5th column of 1st example.

  20. Dear sir if i place a limit order of a stock at price 500 but seller puts limit order at 480. Then at what price trade would execute?
    500 or 480?

  21. Dear Basavaj,

    Could you explain the difference in buy and sell quantity versus demand and supply quantity?? Also, What is the importance of buy and sell quantity in determining equalibirium price? Also, What is a “At the open (ATO) orders and how they help in driving the market in active trading session??

    Thanking you in anticipation.

  22. Sir , Please suggest on the below scenario :

    I wanted to buy 500 stocks of cummins ind on 1st aug.
    I had placed buy at market order at 9.05 am and the stocks were not bought.
    Instead stocks were carry forwarded to open market with limit of 680 ( which was the decided equilibrium price at pre open market ). Do you think this happened due to low volume ?

    Thanking in advance for your help.

  23. Thanks for explanation, please let me clear how can we can anticipate the price in pre-market session, or its simple luck by chance if order get executed. if there is any good or bad news of stock so how one can decide as to which price stock will open.

  24. Sir can any individual or retail investor as small as 100 shares can be placed order in pre open market ?

      1. Dear sir
        By the time 3.30PM to GNFC closed at rs414/-. But 3.31PM it changed to 401.95. Why that sudden change. Normally to get Rs3.00 change thousand of share to be traded.

        1. this happened because in post market order i.e from 3.30pm to 4pm there were buyer and seller who traded at the price of 401.95

  25. 1. Is demand & supply is based on buy & sell market Order?
    2. What is the difference between buy, sell order & cumulative buy sell order in pre-market?
    3. Why bids is greater than offer in pre market?

    1. Vishwesh-1) Not market orders but during Pre-Open Session.
      2) I am not sure of cumulative. May I know the details of the same.
      3) Because there are someone to buy and sellers look for higher bidders.

      1. Ok ok got it. Sir I’m a intraday trader I always follow pre market strategy. I have little more doubts can give u share Ur no.
        My number :- 8850609088

  26. If Market Orders quantity is greater than unmatched tradable qty …

    How remaining market orders will get execute which are placed in pre-open session.

  27. Dear Sir,

    I would like to view the past Pre-Open Market data by date wise. Any possibilities to get this.

    Please help me in this regard.

  28. HELLO BASU SIR !!!
    Can you pls help me with this !
    At what price i should bid in pre open market.?
    Can i bid at any price in the upper &
    Lower circuit range?
    And why do previous close price & next day’s opening price is different?
    Does it is only due to the equilibrium price calculation or there are some other reasons?

  29. Hello sir I would like to know where can I get this premarket data does anyone provides this because I need the quantity of shares traded in the premarket session which is responsible for a gap up or gap down.By knowing that one can predict if it’s a real or just an anxiety move since some stocks might be oversold or overbought because of certain news but the performance of stock might not reflect the move and there may be a chance of gap filling. It would be really helpful if you could tell me where I can get this since I trade on zerodha they don’t provide this. Even Amibroker with its feeder doesn’t provide that or if there is any setting which I could change on amibroker such that I get the volume on the premarket data please do tell me thank you.

  30. Hello,

    As explained by you in above cases for example case 1 where 105 is the equilibrium price of the share,then when the market opens at 9.15 is 105 going to be the opening price?In short is the pre-opening equilibrium point also the opening point at 9.15?
    Also, is after hours trading don in india?

  31. You only explained the defination of pre-open session here, I beleive. Could you please tell us how should this be taken for the entire day intra-day. I mean if the pre-open session was mostly selling, will only selling happen throughout the day for intraday or viceversa?? What’s the importance of pre-open session for intraday?? Please share your valuable honest opinion per your intraday/stock market experience! thanks

  32. A very nice blog which clear lots of doubts. Few questions to ask you if you please clear the doubt

    1) Suppose a HNI trader with 50 crores capital wants to trade a script which is has closed at 200 previous day.Obviously his volumes will be more. So what will be his ideal strategy to fill the orders quickly AMO or Pre opening session?

  33. Great article!

    Few questions.

    1. Let’s say I place an order in premarket, when do I find out if it gets matched?
    2. If it does get matched, will I know the price?
    3. What other info do I get? (for example, is it possible to glance at the book before market open?)
    4. And most importantly, if it doesn’t get matched, does it roll over to market open? Do any orders rollover to market open?

    Thanks!
    – Raghu

    1. Hi Basu,

      I have few doubt about circuit limit

      Recently i observed that Indiabulls share price raised by 50% in a day, Adani enterprises raised 27%, Divi’s lab dropped by 24%, how can this happen as they fall into the 20% price band.

      thanks
      Gani

          1. Correct, circuit filters are not applicable to stocks which have derivatives e.g. futures and options. Remember SATYAM ? 80% fall in a matter of minutes, so be careful. Happy trading.

  34. what does 3 min of buffer do?
    Does it perform specific task other then facilitates transition from pre-open to normal market session?
    what exactly happens in this 3 min of buffer period in pre open?

  35. Basu i have new doubt,

    per my understanding whenever a script breaches the circuit limit within bse prescribed hours trading will be halt for 15 min(2pm), 30 min(1pm) and 45 min(11am). after each halt the equilibrium price determination process repeats

    pls ref bse website and circuit limit field, pl confirm my understanding is correct or not

  36. Basu,

    1.GTDC stands for good till date, this option is available for some scripts in BSE and we can put order validity upto 1 month for both sell and buy, but am not sure whether unexecuted order will be taken for pre-open session next morning or not, but it will be taken for regular market b/w 9.15-3.30pm daily upto 1month

    2.if i have demat a/c with 1 broker can i trade with different broker and transfer shares to my 1st broker demat a/c, because some firms provide less brokerage but not sure about long term guarantee

  37. Hi Basavaraju,

    1.May i know when will be the circuit limit for each script fixed
    2.As the circuit limit for all scripta is 20% during pre open sesson, if i place the order at +20% and if the circuit limit for that script is fixed to 5% how it will be transferred to regular market
    3.If i place the GTDC order after market hours will unexecuted order be considered for pre open session
    4.If i place the order before 9.00am will that be taken for pre open session

    thank you very much for your time,

    Best regards
    Gangadhar
    9686570238

    1. Gangadhar-1) It is fixed by NSE based on the script considering many aspects like liquidity and volatility.
      2) It is script specific.
      3) GTDC stands for?
      4) You are not allowed to place before 9 AM.

  38. Hii, I’ve got a question sir,
    1. Their r two types of orders, after market order n pre open session order; whats the advantage of them over each other?

    2. If i want my order to get executed at highest odds, what precautions shall i take? (ex. Place order at most probable price point or place order as early as possible, as soon as pre market session starts?)

  39. 1. If two people have placed buying order at same price, Which order will get priority to be matched if supply is less than demand?

    2. Which order get priority to be matched, limit or market order if at limit price order, supply is less than demand?

    3. Which order have high probability of execution?

    Thank you for sharing excellent article.

    1. Hansmukh-1) Both if punched to be exactly at same time then for market it is considered as ONE order but not two orders.
      2) There is no such differentiation, if market order and limit order at same price then they treated equally but based on timing the priority will be given.

  40. sir one small doubt. often my stop loss order is executed much above the feeded price as input during intraday trade. for example , for SBI as scrip I have ordered Stop Loss at Rs. 235.00 but the Stop Loss order gets activated at price say Rs. 238.00, many a times it has happen to me. Please help.

    1. Could you please put opening sessions of BSE and NSE differently, also elucidate the closing sessions. Thank you so Much!!!

  41. Sir,
    After the selection of “Equilibrium Price” which orders are given the priority
    (i) The Market Orders OR
    (ii)The Limit Orders – Here the Limit Orders I am talking about are the one which ultimately decided the Equilibrium Price i.e the ones with maximum tradable quantity. Here as the limit price of these orders equals the new market price
    which type of orders are completed first?…. (i) or (ii).

              1. But, the thing is it has rejected the transaction! so no question of equilibrium price!

                Anyways thanks for the reply man!

  42. Sir, i have a question. If i place an order in pre-market session then can i get the shares at market price or do i have to use limits?

  43. is it good to invest in penny stocks using delivery mode through zerodha because zerdoha not charge on delivery as compare to other brokers?

      1. Hi, i think no broker gives guarantee on profit.. and regarding safety of Money… our money in our account or in form of stocks.. where does it go? Pl clarify

  44. can i buy shares on 9 Am and sell at 9:30 Am ???
    .
    .
    should i get share on yesterday closing price ??.
    .
    .
    thank you

    1. Rajesh-Yes, you can place the order. Once it matches the opening price, then it get executed based the priority. Then you can sell the same at 9.30. No, you will not get the share at yesterday’s closing price.

      1. thanks sir. i have one more query regarding to this.

        i will get stock at open price. And suppose it comes down than open price at the end of the day but its more than the previous day closing price. then whose profit is this. is it my profit or company profit. i m asking about intraday shares.
        .
        .
        thank u .
        regards- rajesh

  45. I am little bit confused. I have following quaries
    i) Am i eligible to place an oreder with market price (instead of Limit)?
    ii) If so, once the equilibrium price will be set as per your algorithm, the orders will be executed?
    iii) How the traded quantity calculated whether it is based on the pending orders or previous day’s traded quantity?

    Thanks in advance.

      1. Futures and cash segments are allowed in After market orders.

        Only in pre-open sessions cash segment alone is accepted.

        1. hi buddy,

          So i want to ask you a question here, this means it is a very rare possibility that my order will be executed. i mean what are the chances here that i quote exactly the equilibrium price.. am i getting it right?

            1. In that case, why do investors/traders even bid or place orders in a pre market session, i mean, what is the point , its like winning a lottery – right? if i am wrong please correct me and explain me sir.. confused on this.

  46. Sir news channels shows nifty movements around 6.30 to 9am, that shows nifty is up or down. How can we see them on any other website or applocations before pre open .how news channel knows all this before 9am.

  47. Hi sir i have a question from this article.
    In case-4 what would happens to the orders placed at 101 and 99 when previous days closing price 100 is considered as equilibrium price or call-auction price? Will they be going to the open market?

  48. Nice article. Let me ask a question. Some sites advocate the application of the Chandelier exit by setting your stop upon entry at a multiple of, generally, 3 times the Average True Range (ATR). The ATR at entry for this trade is sitting at 0.0122. So they have calculated ATR as 3X122 pips=366 pips and have the initial stop at 366 pips lower. Now let me know how to calculate for the Indian stock market? What should be the equivalent of pips in the Indian stock market? I hope you would kindly help me.

  49. Hi!! Thanks for the information. I am very new to the technical terms in the market. So, my question may be naive. My question is I want to buy a stock xzy. The closing price yesterday was 100. Just imagine the lower and upper circuit for the stock is 20%. I strongly believe the stock will move to 115-120 range after few minutes market opens. Now, i want to buy the stock at better price anywhere between 100-110. If I want to place order during pre market session (i.e between 9-9.08 am), how I can choose the price? any random price between 100 and 110 or the better price (for example 105) will be shown any where in the broker site (in my case ICICIdirect)?

    Thanks

  50. So, the Equilibrium Price could be higher/lower than the pre-open price(which we get at 9:08 am) of a stock. Please correct me if i am wrong …

  51. Sir thank you for the great article!

    Can I place after market order at market price so that it can get executed at equilibrium price. For example, Infosis results are out and it was excellent, last closing price was around 1162, I anticipate it to increase on Monday. To avoid gap when placing limit price, can I place a AMO at market price and by placing market order will I get best price around the equilibrium price.

  52. Minor typo – Scenario 2 supply Qty for share price is incorrect in figure. Should be 27500 instead of 12500. Great article otherwise. I have 2 questions as well. Do prices move in the same fashion in regular session as well? 2nd – Where can the order book details be found?

  53. IS there any way to carry forward my last day selling order to next day in NSE?

    Also what strategy should i adopt to exit from a stock which is going in lower circuit from past 4 days?(Every days some 3000 sell oders is bring the stock to LC)

    I want to place a request in a such a way that it get executed first in NSE as NSE will place first come/first serve basis

    At what time/what method should i adopt so that NSE will take my orders first?

    1. Sam-No, you can’t carry forward your selling order. The order expires after the market closure. It is hard to guide as to what you have to do with the stock which is trading at lower circuit. It is purely your call of buying. Hence, can’t guide the strategy to SELL from my end. It is everyone’s dream that their orders MUST execute at any cost. But it will not happen like that. Because it is market driven by many of like you and me.

    2. Also just want to know whether any benefit is there for placing selll limit offline order one day in advance instead of giving in pre open session on the same day?

  54. Good morning sir, if a stock closes at 55 rs and in pre opening session it is at 56 or 57 (9:06 am) and I want to buy 500 stocks at the same time, so can I purchase it?

      1. Sir like we purchase stocks after stock market gets open is there any way like that to buy stocks in pre open session

            1. Shariq-All brokers provide this facility. Do remember that trading means you have to buy or sell orders. Based on price mechanism your order may get executed. Please read above post about how the orders executed during pre-open session.

  55. Please let me have your help here.
    I understood the process Pre Open Session as you have explained. However, one question that I have is whenever I place an order to buy or sell any stock at market price instead of limit order during Order Collection Period then I suppose my order will be considered in or as equilibrium price. Is that correct?

      1. Sir i m having same doubt. Whether we can place buy order at market price instead of limit price in pre-open trading time I.e 9:00 to 9: 08 , so that my order will be executed with opening of market.
        Thank u

  56. Dear Sir, I have identified one scrip. My observation is that it definitely goes HIGH from it’s that current days OPEN price. Suppose I want buy that share in the morning with stop loss order but no higher selling price target, what time I should place order? If I have to place buy order what price should write in buying price place in tradetiger to get confirm order? If I put yesterday’s closing price will I get order? If it gap opening at higher price then I can not decide price. I am confused. But I am sure it goes definitely higher from open price except for few days. Please guide me.

      1. No sir it is not like that. If u give me ur e-mail address I can send u excel file with my observations. U have to tell me my thinking right or wrong. U have to guide me. That is all.

  57. Hi sir,
    I have done MBA after BSc , currently working for an Investments firm(2.5 years of experience into BPO finance operations). I am planning to do Certified Financial Planner course. Is it a right move. if so what would be the career as CFP and also can u suggest some good Institutions in Bangalore. Please let me know the course duration and expected fees for it. Thanks in Advance.

    1. Sreni-It is good to know that you are interested in pursuing CFP. There is a huge scope for it. As far as institutes, I did my CFP under my mentor Mrs.Padmalochini who not associated with any institutes, but handles the classes individually. Institutes only care for you up to the time of your fee payment. Later on they not bother whether you completed or not. Hence, I suggest to follow her. If you need her contact details then mail me at tonhokrani@gmail.com.

  58. Hi Sir,

    I bought nitin spinners at 1408@ 73 and due to upper cicuit it went till 103 and now its on lower circuit and has fell to 81.90. im placing a sell order everyday and my order is being pending as there are some 3 lakh pending orders, today my sharekhanbroker has told me i should place order at 11pm in the night i.e premarket session, i dont knw if this is true or not…is he fooling me?? I need to sell my stock at any cost before it crosses my buy price. so tomorrow is the day and i need to place an order….plz help me! do i need to place an order at 11pm tonyt or 9am tomrw morning….i have calculated the price fall since the last three days…its 4.75 fall one day,next 4.5 and today it fell 4.2….so by this trend im assuming it will fall 4rs tmrw, i need your suggestion at which price shall i place the order and at wat time i should place…manoj4cinema@gmail.com is my email id, plz kindly help me with an advice as early as possible
    THanks a lot in advance
    Manoj Chandra

  59. Dear sir, Nice to see you replying all the queries. I have a question. I am using investing.com for nifty and banknifty Future chart. In that i’m seeing candles from 6:30 am to 9:15 am and then normal market hours candle. how is it possible in Future sir?. Kindly see the investing.com streaming chart, you will see the above info. please let me know your thoughts.

    Thanks
    Raj s

  60. dear sir please tell me from where I can get all the entered orders in any particular script like when we checking on nse pre market page it only shows buy qty and sell qty ato and total if I want to check all enterd orders with al the rates in pre market. I mean want to get all the pre market order detailed summary

  61. Hi sir ,
    I have one doubt. if previous close of x share is 100rs. So i have placed an order of 10 shares at 100,and it goes down(say 98) in pre open session. So i wanted to cancel it before 9.08(end of pre open session). is it possible to cancel or as soon as it reached 100 it is excecuted. please explain briefly

      1. Thanks for your reply. Actually I am not modifying. I placed an order at 9.01 or earlier but in pre open session Stock price is going down and i could notice it at 9.05 (still 3 minutes to end pre open session) so can i cancle it before 9.08(say at 9.06 or 9.07) or it would have been excecuted already

  62. Hi,

    I have a question. In the BSEIndia website when I checked Bharati Airtel price in todays trade it dispalyed as follows

    Previous Close : 413.70 Open : 427.00

    Why there is difference in Previous close and open price ?
    Any information on this would be appreciated

    Thanks

    1. Amit-When trade start today and there are huge buyers then automatically the first trade get executed at higher price (in your case it is Rs.427). So it shows the difference. At the same time, when there is a huge sellers then the price will automatically goes down (like 310) also.

  63. I have one small doubt, consider a company xyz

    SYMBOL qty EP Prev.CLose
    XYZ 5000 100 90

    I am a little confused with the qty here, does it state 5000 shares have been traded for this stock at EP?

    Thank You

      1. Like say for today 5th of Aug 2015 Preopen market of TATASTEEL is like

        EP: 260 %Chng:1.44 Prevclose: 256.30 Qty :13,516

        Does this mean 13,516 shares have been traded for the Ep price. *EP being equilibrium price*

        Can yo please let me know the role of QTY in Premarket sessions

        Thank You

  64. Its very nice article, i m novice in the stock market, your article made me understand the pre market session, but i have a doubt. i have a sell order in the day market at the closing price at under price(friday), due to less demand it could not get executed. but i could see the price after 3.30 has appreciated beyond expectation. my question is that can i place pre market order to sell on monday market for the same stock?

    Thanks basavaraj in advance.
    Adarsh

  65. I learning share market last 6 month I want to know how can I know premarket buy n sell price. So I can buy or sell stocks.

  66. Hi Basavaraj ,

    I have placed the Buy order of 500 shares at 59.75 . the market was about to close . so my order was partially executed and executed quantity was 100 . But the strange thing is the share closed at 59.65 . I mean how can it be possible ? Will my remaining quantity go to pre market session next day ? Kindly clarify .

      1. Thanks a lot for replying . But still its difficult to understand that my order is already partially executed at 59.75 which means my order should be considered first as a buy at this price on the first come first serve basis .

        So , now the question is if my order was already there at 59.75 , how can the stock reached the 59.65 level without fully executing the partially executed order at 59.75 .
        This is total strange and my money is blocked for 500 shares instead of 100 shares. I am not understanding it .

  67. Hi,
    I checked Pre-Open Order Collection for NSE at http://www.nseindia.com/live_market/dynaContent/live_watch/pre_open_market/pre_open_market.htm. When I click on any scrip it tells me me buy QTY, Price and Sell QTY. and finally it shows Pre-Order Collection summary. I am unable to follow your instructions above in those examples and IEP is something different. Can you please explain how the aggregation works in buy and sell qty? I think that is one of the parameters for deciding the price.

    Thanks
    J

  68. Is this the reason…if the stock is up 5% in pre-open…as soon as the market opens…the stock goes down….

  69. Hi Tonagatti,

    Very Nice Article and helpful for Traders…..
    One question confusing me that…. if Order will excecute after 9:08 AM, then why NIFTY and SENSEX Keep Changing from 9:00 AM to 9:15 AM Continue in Up/Down Pattern with huge Difference.

    What is the Reason for that…. ?

  70. Nice article..feeling great..

    but neeed some more clarification,..

    1.how pre open market is helpful?

    2.how to decide the trend upside/downside based upon preopen market?

  71. Great writeup. What a way to shaft innocent derivatives holders. The pre-open session has been the biggest fraud heaped on unsuspecting traders of NSE/BSE. I don’t understand why dalal st. crooks are allowed to benefit from gap openings and retailers/small investors always lose. SEBI is very much a party to this institutional fraud. We have the same round robin trades throughout the day. Indian markets are no longer Indian.

  72. I saw many days that NIFTY price changes at 9AM itself (you can see that on CNBC TV 18 too). How can this be? The market has to discover price from 9:08 to 9:12 right? How come price changes at 9AM and further changes at 9:15 AM?

  73. Thanks for a very nice article. One question to you Sir. For an equilibrium price , where demand is more than supply, few people will not get shares. How it is decided who will get shares and who will not..? Who decides this.? Thanks,

      1. Hi Basavaraj,

        Do you know any link where we can get archive data for opening pre session qty. I feel this is the
        deciding factor how share is going to react whole day.

        Regards
        Nisar

  74. Really good article..
    How is it beneficial to know about the Pre Market as by the time trades get confirmation so do the price too may get changed (i believe,may be i am wrong) of an xyz company?

    what is After Hours Trading Session?

    Are stocks gets manupulated by big investors? As they buy in huge quantity and sell them off as soon as posible
    i am a rookie..please can u suggest somthings more things to gain knowledge that will be really helpfull
    looking forward for your answer
    thanks

    1. Dominic-Pre-Open Session will give indication. Regarding After Hours Trading Session, you find wonderful explanation HERE. Yes sometimes they get manipulated. But there is something called circuit breaker to stop such huge manipulation.

  75. Sir, If I place a order in pre-open Market for buy xyz share in Rs. 100 and the equilibirum price comes Rs. 95 than on which price my order get executed. If my order get executed on Rs. 95 for which i had bided for Rs. 100. please tell Rs. 95 shall be debited or rs. 100 shall be debited from my account.

  76. With due respect to you Sir,
    Since last one week I am putting my buy order for Aimco Pesticide at 5% Upper Circuit Limit , but My order NOT GETTING EXECUTED . What is the mechanism , why my order is not getting execution ? I am entering at shaft 8.45am on BSE terminal . Can you please guide me how can I PUT my order atFirst , , so that I can atleast get 100 shares ?
    With regards
    Vakharia Mahesh

  77. Hi Basu ,
    Superb Article!!!!!
    Could you please elaborate on Advantages and Disadvantages of Day Trading..?

    Thanks in Advance.
    Rahul

  78. When I can place an order in pre=market session? Should I use AMO or can I place the order like normal (market open time) time I do?

  79. Hello
    I really appreciate for the contents of article, but there are some doubts may be because stock market is new for me. I will be glad If you clarify the following doubts.
    Scenario I – Order book – buy and Sell – are these quantity for a period say 9.00 to 9.12 or at a start of session.
    Demand and supply quantity and Maximum trad able quantity – not clear to me, how you derived these quantity numbers.
    Unmatched orders – is the difference between demand and supply? Why it can not be difference between buy and sell.

    Thanks

  80. Excellent Article!!

    Can you please elaborate on “Price band of 20% shall be applicable on the securities during pre-open session.”

  81. Hi,

    Very nice article. Is there any partial execution happens in pre-open market? If yes, Premarket partial executed market orders, what rate it will be executed in the regular market?

  82. but why there is always a significant move in pre market as compared to normal trading sessions? and also if our limit order does not get executed in pre market , then later do we have a option to modify or cancel it?

    1. Krishna-It is the speculation that leads to high volatility during this period. Later part the non executed orders are considered as limit orders hence you have option to modify or cancel them.

    2. Hi, please clarify one point during pre market trading.

      Suppose i place a buy order at market price @9 AM (which shows last day traded value), does it automatically pick the market price after call auction price and execute the buy order or it waits till 9.15 am to pick the stock open price and then execute the buy order.

  83. Hii Basu

    A very nice article
    I want to know about how price band works ?
    and what do you mean by buffer period ?

    1. Sumeet Gupta-Are you asking about IPO Price Band? Then it is the decision of Issuer who decides price band for that particular issue consulting with underwriter of that issue. Basically it is based on the company valuation and expected demand. Regarding buffer period, I wrote in above post. It is the transition period from pre-open to normal market period. Hope I answered your queries.

      1. Thank you so much. I was longing for this . I have one question , all market orders will be executed , n what about the limit orders which are matched with decided pre open price?

        1. Sarvana-They will converted into normal limit orders (I mentioned the same in last lines of this blog).

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