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Tuesday, July 14, 2020

What are the share market timings?

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What are the share market timings?

Hello everyone in some of our last videos we covered the basics of investing trading and how to get started if you wish to enter the stock market now since we've covered the hull part let's move to the main part yes in this video we are going to tell you about the stock market timings in India and how the time slots are divided into the stock market let's dive right in to start with the stock market in India is open from Monday to Friday and is closed on weekends apart from this the stock exchange also releases a list of trading holidays for the entire year basically the Indian stock market timings are divided into three sessions namely pre opening session normal trading session or continuous trading session and post opening session the timings of normal trading session is from 9:15 a.m. to 3:30 p.m. during this time duration you're free to buy or sell shares it can be said that this is the actual time of 

The stock market a normal trading session a bilateral trading system is used under which the transaction gets automatically completed when the stock price of the buyer and seller matches if the buyer and sellers are a massive number then transactions get completed on the basis of price and priority of time the full normal trading session a pre opening session of 15 minutes is also allotted by the stock exchange the timing of the same is from 9:00 a.m. to 9:15 a.m. and it is further divided into three slots first from 9:00 a.m. to 9:00 8:00 a.m. call the order entry period in this slot you can place your buy or sell order and modify the orders as well second from 9 8 a.m. to 9 12 a.m. called the order matching session in this plot along with order matching the opening price of the normal session gets decided remember during this slot you cannot modify your order from 9 12 a.m. to 9:15 a.m. called the buffer period in this slot the smooth transition from pre-opening session to normal trading session takes place all in all the pre opening session is mainly for deciding or calculating the opening price for the normal trading session and for the purpose of discovering this opening price a multilateral order matching system is used under this system the price at which most of the buy and sell orders match technically known as the equilibrium price and it becomes the opening price of a normal trading session a few years back there was no pre opening session the opening price for normal trading session was decided by the bilateral order matching system but there was a lot of volatility in the opening price of normal trading session due to the usage of this system for calculation in order to reduce this volatility the pre opening session was introduced where the multilateral order matching system is used for deciding the opening price of the normal trading session as explained before here the price at which most orders match is taken as the opening price for the normal trading session thus reducing the volatility but in India there are very few traders who participate in the pre opening session most of them prefer to trade in the normal trading session only 
It's due to this reason that despite having pre opening session there still is certain volatility that last was sometime when the normal trading session starts in the morning according to a study made by I am Ahmedabad even despite having a pre opening session in the Indian stock market it takes about 25 to 30 minutes for this volatility and volume to settle after the normal trading starts hence be very thoughtful and attentive if you trade during the initial few minutes of the normal trading session once the normal trading session ends 10 minutes of time duration that's from 3:30 p.m. to 3:40 p.m. is allotted for the calculation of closing price at 3:30 p.m. when the normal trading closes then the price of any stock at that point in time is not the closing price the closing price of any share or any stock is basically the weighted average of the prices of that particular stock from 3:00 to 3:30 p.m. or the last half Ana in case of an index like nifty or Sensex the closing price is the weighted average of prices of listed shares for the last half an hour this is known as volume weighted average price closing price gets calculated usually within two to three minutes that's by 332 to 333 p.m. once the calculation of closing price gets completed there is a post closing session from 340 p.m. to 4:00 p.m. during this session the buying or selling of the shares takes place at the closing price of the normal trading session pre opening and post closing sessions are only available in the cash market and not in futures and options thus to sum up the Indian stock market timings are 9 a.m. to 9:15 a.m. free opening session 9:15 a.m. to 3:30 p.m. normal trading session 3:30 p.m. to 3:40 p.m. closing price calculation 340 p.m. to 4:00 p.m. post closing session at times owing to different reasons if you are unable to trade during the stock market timing then you can use amo or after market order under amo you get the option to place your order after the market closes and before the market opens the next day during this there is no buying or selling of shares you can only place your order for the next trading session one factor note here is that different brokers have different aftermarket timings in fact some brokers did not provide you with the option of aftermarket order apart from these timings there is a special trading session in Indian stock market known as mereth trading on the occasion of Diwali every year the stock market opens for one are the timings of the muder trading is announced by the stock exchange of few days before Diwali we hope this video will help you understand the timings of the Indian stock market that will help you to buy or sell shares accordingly
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