Why index open with huge difference -points or +points in next trading day

F&O
1

Hello everyone my question is why index open in next trading day with huge different from previous close price.

eg; Nifty previous close 10888 next trading opening 10789 why this huge difference comes and from where?

Anyhow, exchange won’t allow to do any trading after 3:30 pm and 9:15 am.

Please anyone help me in this regards.

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2

That is drawback of Indian stock mkt, ideally they should allow to trade Nifty futures entire day like Dow futures are traded

Next day whatever are the pre open bid and ask trades for Nifty stocks will decide Nifty opening and it can be anything compared to previous closing, no rules

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@Newbie420, you mean due to nifty future the difference comes in next trading day?

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Nifty derives value from Nifty stocks, not from Nifty future. So whichever price the Nifty stocks open next day in pre open session, Nifty opening will be based on that at 9:08 am

Nifty future trades based on value of Nifty starting from 9:15 am

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