Hello everyone,
Zomato is listing today. I was looking at the pre-opening market depth (at about 9:03am).
This looks very strange to me, especially the Sell orders. The cutoff price was Rs. 76, why would people place so many orders to sell at 25% loss even before the first trade happens? Are these system-generated “dummy” orders placed by the exchange’s software itself, but why would they do that?
Buyers want to buy at any price and sellers want to sell at any price, any way the trade only happen at equilibrium price, so you can see more buyers are there so likely trade will happen at upper end only.
They are just indicative, you can know more here about pre open.
Also on listing day preopen will be from 9 to 9.45 am.