Pre - Opening market session

 History 

Since 2010 , the National Stock Exchange (NSE) has allowed for a 15 minute pre - market or pre - open session. This helps to reduce the prove volatility right at the opening of the market. 

What is pre-opening market session

The pre-open stock trading session is conducted from 9:00 am to 9:15 am everyday as the trading session starts. It has the duration of 15 minutes. This pre - market session is conducted both in NSE and BSE. 

• Order placing

During the pre - market session for the first eight minutes, i.e, from 9:00 am to 9:08 am , orders are collected, modified or cancelled by the exchange. 

After these initial eight minutes, no orders are accepted. 

•Order matching

From 9:08 am to 9:11 am, the orders got matched. 

During this time, you cannot buy, sell, cancel or modify your order. 

•Buffer session

And in the last 4 minutes, not much movement remains. 

Facilities the transition from pre-opening to regular market session. 

Advantages 

15 minutes session from 9:00 am to 9:15 am, the heavy fluctuations in the market got absorbed. 

There is a benefit for small investors as they will guess the trend of the market when market actually opens. 

The 10 am rule in stocks

9:30am to 9:40 am , stocks that open higher or lower than they closed usually continue keep rising or falling following the trend upward or downwards according to their change in difference from their previous day close. 

For the first five to ten minutes, from 9:40 am to 10:00 am before reversing course for the next 20 minutes , conditions any major news not came at night. 

Which one is better AMO or pre-market order?

After market order(AMO) executes from 4:00pm to 9:00am. We may place amo's but they get executed at 9:15am.

Placing the pre-market order has a better chance of being executed than an AMO. 

But if you have busy schedule or an employee then for convenience you can definitely go with AMO as you can place it between 3:45 pm to 8:57 am for NSE and 3:45 pm to 8:59 am for BSE , without waiting for pre-market timing. 

Pre-Open Market on NSE

You can check the pre-open market on the official website of NSE. 

Approximately at 9:07am the site gets open and list the stocks according to their gap-up, gap-down and unch basis. 

The screenshot of the website. 

The link of the official NSE website from where you can watch the pre-opening market session is provided below. 

Pre-opening market session

You can check the changes occured in the stocks in order to predict the trend of the market. 

         Happy investing!