Can we buy/sell equity stock at previous close price using MIS product type in pre-open session?
No its is not possible, unless it is opened at that price or is someone offering you at that rate.
You can place order at previous close price using MIS product type in pre open session. But the odds of success rate that your order will be confirmed (executed) is near to zero.
You order will get confirmed only, if the opening price of today is calculated at same price of pervious day’s close. The chance of this happening is very rare. (at least for all MIS listed shares)
But if you are having enough money in your trading account to buy it in CNC product code, then you can buy those shares of previous day closing, at yesterday evening itself, from 3:40 to 4:00 pm, this is called post market order.
Example, today you want to buy 100 shares of ABC limited company (assume 9 times leverage) at rupees 50 per share using product code MIS. For buying 100 shares in MIS, you only need around 560 rupees.
If you have more than 5000 rupees in your account.
You can buy the ABC limited company 500 shares in CNC itself, but during yesterday evening post market session. (3:40 to 4:00 pm only CNC is allowed and at closing price only)
Your 5000 rupees will be taken from your account. You would have bought 500 shares at previous day’s closing price.
Today morning when normal market opens, just convert your 500 shares from CNC to MIS, now margin required will be only 560, so your 4440 rupees will be returned back to your trading account which you could use other types of trading.
Hurrah! you have bought 500 shares in MIS at previous day’s closing price.
Hope you understand, what I say.
Note: Even in post market order, you can only buy if some seller is there, otherwise your margin amount will be restored, without actually buying any shares.
But how can I convert the CNC order to MIS next morning?