NIFTY price starts chaning at 9AM itself. WHy?
What you see changing at 9am is the equilibrium price. So based on all the pre-market orders, an equilibrium price is calculated. (price at which maximum quantity can be matched).
So yes order matching at 9.08 am, but between 9 to 9.08, prices change too.
Check this link.
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Where is that you are seeing this?
Some terminals start the day at 9 am and refresh the screen with yesterdays closing price.
(Erase the yesterdays LTP and change it to yesterdays closing price) at 9 am
May be this is what you are seeing.
This happens in free sites like google finance, yahoo finance.
Zerodha terminal displays the value correctly for the whole day.
As the 50 constituents of the Nifty are allowed to trade in the Pre-Market session, their prices wud change. Respectively, the index tht constitute them would reflect its prices. So, the nifty index price change happens whenever a single change happens in any of its constituents and tht is wht is reflected between 9AM-9.15AM.
What I could guess is, since NIFTY is an aggregate, the moment a stock’s equilibrium is found out, NIFTY changes, and between 9 to 9:08, all stocks (of NIFTY) equilibrium is found out. Hence the changes.
hi Astroguru, I see that in Z5 in fact google finance changes at 9:08 correctly. However, Nitin’s answer is logical, the equilibrium price is found out.
@prash
What Nitin is referring is equibrium price which gets released by 9:08 am.
Before 9:07 am only order collection is done.
I see no reason why price has to change at 9 am.
Maybe Nithin should explain further.
Since no trading happens in between 9 to 9:07 am and equibrium price can only be calculated after all orders are received. I am bit doubtful on Nithin’s explanation (what he is really trying to explain)!
@Astroguru : You got me thinking now…Nithin’s earlier remarks on AMO was this "@ Sukesh, what time you place an AMO has no significance on the priority in which your order is executed. As soon as the market opens at 9.15am, all the AMO orders are sent by the broker end. ".
SO, if AMOs get released at 9:15 and pre-open orders are allowed to enter from 9:00AM to 9:07AM, then how can NIFTY change at exactly 9:00AM? (I see this everyday at CNBC TV 18 as well, they comment on NIFTY change at 9:00AM and give a few minutes for it to settle down).
My guess is the moment the pre-open orders are entered at 9:00 the nifty starts changing too as equilibrium price is constantly found till 9:08.
@prash
Thanks for pointing out. Yes, this could be possible.
Even if equilibrium price changes during 9:00 to 9:07, only the final values at 9:08 has any significance, since no trade takes place during that period. Nifty can go up and suddenly can come down also. But most orders pour in during the first 2 mins or so. I should agree to that.