Can i buy stock for intraday trading in the pre market session

Hello Trader,

Yes you can.

Place a MIS order between 9AM to 9:08AM to buy or sell during the pre-market session.

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NSE and BSE — has introduced the 15-minute special pre-open trading session, a mechanism under which investors can bid for stocks before the market opens.

The mechanism, known as ‘pre-open session call auction’, will last for a duration of 15 minutes (from 9:00—9:15 a.m.).

While, this system has been started to reduce the quantum of volatility — typically visible in the first few minutes of trade — but going by the first day’s action this special session was more volatile than the normal trading session.

In the first 15 minutes, investors can place orders for eight minutes on the basis of which the exchanges will determine the rates at which trading will happen.

Market experts believe that the introduction of pre-open session assumes special significance, especially, in situations when there is any major event or announcement comes overnight before market opens.

Such special events may be such as merger and acquisition announcements, open offers, delisting, debt-restructurings, credit-rating downgrades or any rumours regarding any of such events, they said.

On a normal day with no major event before 9:00 a.m., this pre-open session may appear to be a non-event and a routine exercise. However, on a day when there is any major outcome before the market hours this mechanism assumes special significance.

In a call auction practice, participants indicate their willingness to buy or sell units of a security by placing an order for a number of units at the prevailing price before the opening of trade.

The introduction of pre-open session with a call auction mechanism is expected to reduce the quantum of volatility, typically visible in the first few minutes of trade, analysts said.

Initially the call auction session will be applicable for those stocks, which are the part of Sensex and Nifty.

Sensex, the benchmark index of BSE, comprises of 30 blue-chip stocks, while Nifty — the NSE barometer — lists 50 scrips.

I tried to place a sell order for 1000 NTPC shares @ 115 at 9.06AM at NSE. There was a matching a bid with same quantity n price. But my trade was not executed. Why?

During pre-market session from 9 AM till 9:08 AM you can only place, modify or cancel orders.

After price discovery is complete, there is order matching period from 9:08 AM till 9:12 AM. Orders are matched at the equilibrium price, where Limit Orders are matched with Limit Orders and Market Orders are matched with Market Orders. You can check how pre-market session works here.

Orders which aren’t matched are carried forward to normal trading hours.