Premarket Session Screening and Strategies | For Dummies

premarket analysis india

What is the Premarket Session in India ?

The NSE and BSE Stock exchanges in India opens at 9AM, weekdays.

However, The trading starts only 9:15 AM

The 15 mins between 9 AM  till 9:15AM , is called the Premarket session in India.

During 9:00AM and 9:08AM the exchanges accepts Premarket orders from traders who are in a hurry to accumulate or dump stocks.

The orders received during this First 8 minutes are matched, and an opening price is determined at 9:08Am

What time does the premarket data analysis start?

The premarket analysis and screening starts at 9:08 AM.

Exactlt at 9:08AM the exchange releases premarket trading  information to the public.

The gaps for the day, Premarket volume are know at 9:08AM

A daytrader now has 7 minutes for their daily premarket analysis.

What information are screened during premarket session ?

During the Premarket session, the daytrader normally analyse the premarket data for:

  1. Bullish or Bearish sentment of the Nifty Index.
  2. Opening Gaps of individual stocks, The top 5 gappers.
  3. Premarket volume data strength.

Why do day traders analyse gap and volume data during premarket session ?

It is generally considered that stocks with a higher opening gap up combined with a strong preopen volume has a huge demand .

Likewise socks opening with a big gap down combined with strong pre open volume are likely to have a sell-off during the day.

Where to find information on Preopen session at 9:08AM ?

Preopen Gaps and Preopen Volume strength data can be screened using the Free FataFat Stock Screener.

What are the tradeable strategies using premarket session screening data ?

Day Traders who analyse the premarket data use the premarket data are mostly momentum traders. Their strategies include

  1. The HIGH or LOW of Day breakouts, after retracement on low volumes, Gap and Go Strategy.
  2. Bull and Bear Flag Patterns.