Extended trading hours will help traders who take overnight positions. Now they can hedge their position even after the cash market is closed. Their risk of a gap up/gap down opening will be mitigated.
But i don’t think there will be enough liquidity for intraday traders. So i would wait and watch the market liquidity for a few months before taking any trades.
Just a small query …
If cash markets are closed which means the underlying are not being traded then the F&O will solely operate on speculative trades or on events?
I am a bit confused here …
Will there be a good opportunity to make a quick profit on the next day cash opening basis yesterday’s F&O closing?
@nithin, I believe brokers shud ask exchanges to implement trading hour extension till 5PM for 6months before gng ahead for extension till 11:55pm. By this brokers can scale up operations in a stepwise manner.
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This may not happen as NSE’s main plan is to attract foreign investors who trade Indian derivatives on all other offshore jurisdictions and this can happen only if markets are open till midnight.
Also in coming few months data feed license between NSE and Sgx is going to end and upon which investors may look for alternatives and NSE should be ready by that time.
Meanwhile NSE also got approval from CFTC to sell it’s products to all US based institutional investors which will enable them to trade in NSE-listed derivatives with out any restriction, another reason for markets to open till midnight.
NSE also planning to introduce commodity derivatives soon.
It has been already informed well in advance and I personally believe enough time is given to scale up operations.
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Going by ,all the moves by SEBI & Exchanges , it seems that FNO trading is going to be tailor made suit for FII’s . In one hand SEBI is going to bar retail traders in FNO in the name of ( disguising as ) of protecting retail traders and on the other hand EXchanges are desperate do all sorts of thing to attract FII’s , On net net it seems retail traders are going to loose opportunities!!!
Instead of repeating all the news briefs, it wud gr8 if u cud elaborate on how brokers are scaling up for the trading hour extension.
Most of the brokers are already equipped with infrastructure, most of the processes are digitized hence there should not be any transition issue for big brokers but initially their fixed costs may rise due to increase in manpower. Everyone is awaiting from NSE on the flow of few processes, that’s it. Said this I personally still believe there may be few initial hiccups in transition across brokers not on infrastructure side but on implementation side.
Only indices fno or stock fno also please clarify and normal stock trading hour will change also?
Nothing is out yet, need to wait for few more days, but for sure trading hours for index derivatives will be extended.
Speculation is the drive force for fno, i beelieve ther is no neeed to extend cash market timing, as more sppeculation willl more liquidity and more participation in fho market
Hi @Vandana1 
There will be lunch break, dinner break and intermittent snacks breaks also 
Everything depends on us. Novice & casual traders will face lots of problem due to this extended trading hours. But this will be an advantage for Professional Traders for sure. My screen gazing time is 20 to 25 mins only/day with an active trade and I don’t think it will increase more than 30 mins with extended trading hours. It’s unprofessional to micromanage a trade. Moreover we will be able to avoid some Black Swans and even take advantage of during such events with mkts open till 11.55 pm.
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Then it’s good. With so many goodies and breaks trading will feel like a picnic …overall extended timings till late at night will reduce shocking gap openings for traders who keep the trades overnight. But I feel overall volume could reduce or become spread out during the day and we could see less movements in stocks and indices.
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Let’s hope @siva, everything goes on smoothly.
By the way, have u ppl checked out yesterday’s NSE circular for mock trading on 2ndJune? It has two trading sessions having Break in between with market open at 10am. Is it a subtle clue on what might be cmg ahead!
@Vandana1 Yes. I think the Bid:Ask Spread might be slightly widened due to spreading of the volume. My only suggestion is - Welcome this welcome move whole-heartedly. Wish you Best Of Luck 
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This is normal, even last few mocks has break in between.
Thanks 
best of luck to you too
Point 2 in circular states that all outstanding orders shall be purged before the start of the new session … does it mean our stop loss orders will get cancelled too? Do we have to enter stop loss orders once again after the break.
Yes, this is similar to market close and start trading on next day in this case.
From june 4 its going to wxtend or wat?
No, this is just about mock trading which is conducted by exchange on every month for brokers to test their connections and systems.