Stock Market Timing in India
An investor should look upon various things into notice before making a trade. Time plays a critical role in trading or investing. For a trader, time is equal to trading opportunity. The price of a stock may surge in no time and the price of a stock may fall in no time. Timing helps in separating a good trade from a bad trade. Timing will help in determining the profitability of your hypothesis. You can lose money, if your timing is off. For example, a person who makes an early trade is going to get a better advantage, in case the stock price surges. Similarly, if a trader sells its stock before it breaks the support price, then he/she will minimize its losses.
An investor should be aware of the stock market timing. Each country has different timing as well as different time zones. In the case of India, the share market timing is between 9: 15 A.M. and 3:30 P.M. from Monday to Friday.
India stock market timing is divided into three parts:
- Pre-opening Timing:
The pre-opening session starts from 9:00 A.M. to 9: 15 A.M. which is further classified into three parts.
- 9:00 A.M. – 9.08 A.M.
The stock market opening time starts at 9:00 A.M. and orders for any transaction can be placed afterward. At this time, the order entry gets first preference, when actual trading begins as these orders are cleared off in the beginning. Any trader or investor during this time can be changed or cancelled according to needs, which is beneficial to investors. But one should always remember the fact that no order can be taken after the period of 8 minutes during the pre-opening session.
- 9:08 A.M.- 9: 12 A.M. (Indian Share Market Timing)
This timing is also called as Indian Share Market Timing. This time period is responsible for price determination of security. Price matching is done only by corresponding demand and supply price.
- 9: 12 A.M – 9: 15 A.M.
This small period acts as a transition period between pre-opening and normal Indian share market timing. But one must note that, no additional order can be placed during this time. This time period can be called an order matching session.
- 9: 15 A.M. to 3.30 P.M (Normal Trading Session):
This is the main trading session, which starts at about 9: 15 A.M. and ends at 3.30 P.M. Any investor can buy and sell shares in that time period. It is also considered as the actual timing of the stock market. Any transaction made during this time period follows a bilateral trading matching system, where the transaction price of security is determined through demand and supply forces.
- 3.30 PM (Closing Session): The closing of the stock market in India happens at 3.30 p.m. There will be no exchange after this period. But the time schedule is important as it helps in determining the closing price as well as having a significant impact on the following day opening price.
It is further divided into two parts
- 3: 30 PM – 3.40 P.M.: This time period is used to calculate the closing price of the stocks. It is calculated by taking the average value of all the stocks in the last half an hour from 3.00 P.M. to 3.30 P.M.
- 3.40 P.M. – 4.00 P.M.: The post-closing session is from 3.40 P.M. to 4.00 P.M. One can place an order for trading if the buyer or seller is available, your order can be done at the closing price.
Apart from that, an investor should also be aware of the trading holidays, which is announced in advance by the respective exchange. But there is also a trading session on the auspicious occasion of Diwali known as Muhurat Trading. It is notified by respective exchanges of India, a few days before.
In case, if a trader misses the trade in time 9:00 A.M. to 4.00 P.M., then they can also place AMO ( After Market order ). AMO basically allows you to place orders to buy or sell stocks for the next day’s trading before commencement of trading.
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.