Home >> Blog >> 5 Things to Know Before Opening & Closing of Indian Stock Market
5 Things to Know Before Opening & Closing of Indian Stock Market
Table of Contents
Introduction
Understanding the stock market is crucial for every trader, especially when it comes to monitoring essential data before and during trading hours. This guide will walk you through the important data points and markets to watch from the time the market opens at 9:15 AM until it closes at 3:30 PM.
Monitoring GIFT Nifty
One of the first and most important data points to monitor before the market opens is GIFT Nifty. Formerly known as SGX Nifty, this data is essential for predicting the Indian market's opening trends.
- Check before 9:15 AM
- Data available on Trading View
- 100+ points suggest gap up
- 100- points suggest gap down
Understanding whether GIFT Nifty is showing a positive or negative trend helps in anticipating the Indian market's opening. This is particularly important for beginners who may not understand why the market opens gap up or gap down.
The Importance of Dow Jones
Another critical index to monitor is Dow Jones. This American market index can significantly influence the Indian market's opening trends.
- Check before the Indian market opens
- Positive Dow Jones suggests a gap up
- Negative Dow Jones suggests a gap down
Keeping an eye on Dow Jones helps in making informed trading decisions without having to stay up all night monitoring international markets.
Tracking India Vix
India Vix, often referred to as the "fear index," is another crucial parameter to monitor. It indicates the level of volatility in the market.
- Monitor daily
- High Vix indicates market volatility
- Low Vix indicates market stability
India Vix is particularly useful during news events or sudden market movements. It helps traders understand the market's fear level and make informed decisions.
European Markets and Their Impact
European markets also play a significant role in influencing the Indian market, especially around 12:30 PM when they open.
- Monitor around 12:30 PM
- FTSE 100 is a key index
- Sudden movements can impact the Indian market
Understanding the European market's trends helps in anticipating sudden movements in the Indian market during mid-day trading.
The Role of PCR Ratio
The Put-Call Ratio (PCR) is another essential metric for traders. It helps in determining whether the market sentiment is bullish or bearish.
- PCR below 0.7 is bullish
- PCR above 1.2 is bearish
- Helps in understanding market sentiment
Monitoring the PCR ratio can provide valuable insights into market trends, helping traders make more informed decisions.
Conclusion
In summary, monitoring GIFT Nifty, Dow Jones, India Vix, European markets, and the PCR ratio are essential for making informed trading decisions. These data points help in understanding market trends and anticipating movements, allowing traders to strategize effectively.
Remember, trading is not just about luck but making informed decisions based on reliable data. By focusing on these key parameters, you can enhance your trading strategy and achieve better results.
Thank you for reading, and happy trading!
Frequently Asked Questions
GIFT Nifty, formerly known as SGX Nifty, is an indicator of the Indian stock market's opening trends. It is essential to monitor before the Indian market opens at 9:15 AM because it provides a forecast of the market's direction. A movement of 100+ points suggests a gap up, while a movement of -100 points suggests a gap down, helping traders anticipate market conditions.
The Dow Jones index, a major American market index, significantly impacts the Indian stock market's opening trends. Monitoring the Dow Jones before the Indian market opens can indicate potential movements. A positive Dow Jones typically suggests a gap up in the Indian market, while a negative Dow Jones indicates a gap down, guiding traders in their pre-market preparations.
India Vix, often called the "fear index," measures market volatility. A high Vix indicates increased market volatility and potential risk, while a low Vix suggests market stability. Monitoring India Vix daily helps traders gauge the level of market fear and volatility, enabling them to make more informed and cautious trading decisions, especially during news events or sudden market shifts.
European markets, particularly the FTSE 100, can significantly influence the Indian market, especially around 12:30 PM when they open. Sudden movements in European markets can impact mid-day trading in India. Monitoring these markets helps traders anticipate potential fluctuations and adjust their strategies accordingly during the trading day.
The Put-Call Ratio (PCR) is a metric that helps determine market sentiment by comparing the number of put options to call options. A PCR below 0.7 indicates a bullish market sentiment, while a PCR above 1.2 indicates a bearish sentiment. Monitoring the PCR ratio provides valuable insights into whether traders are more inclined towards buying or selling, aiding in making informed trading decisions.
