Why opening price of stock is different (gap up/gap down) from previous day closing price?
It’s because of Market Sentiments and Any specific news which will affect the Market.
Any Specific news in that stock causes gap up/ gap down.
In pre open market Investor/Traders bid & Offer at a Price than after this Order matching has been done by the system.
If there is any good news people start buying it and if there is any bad news people start selling it.
I know only this much.
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Do you mean that the opening price is different because of lots of AMO (buy/sell) orders?
NSE calculates the average of the last half an hour ( It must be volume weighted for stocks and time weighted ( ? )for indices ) and disseminates them as closing prices. Similarly, BSE uses 10 min. avaerage for the close of the Sensex. All derivatives are settled at these closing prices of the underlying on the expiry day. On all other days, daily settlements of the derivatives are at the instrument’s closing price calculated as above.
When large price changes happen in the last half an hour of trading, close and LTP may differ widely. LTP simply means the last traded price.
Also Post market orders play important role for the gap up or gap down opening of different stocks
Therefore money control website daily show call and put volume for the market support and resistance.