SEBI allowed to extend F&O trading till 11:55 p.m from Oct. 1.

[headstrong007]

• On the last day of the contract— the last Thursday of the month—next month’s contracts would be eligible to trade.

^^^^^^^^^^^^^^^

Read the in-between lines of above statement.

Contracts will expire around expiry day 3:30 cash market closing session. Only next month contract for the evening session.
That's easy.. But, the in-between line is Stock Futures will be available so that 3:30 pm settlement(physical settlement).

If it is only index derivative no one care settlement time 3:30 or 11:55.

So, smart guess: Stock F&O is also available sooner or later for the extended session.

 

[headstrong007]

Someone close to me and related to brokerage business informed me that extended trading session to start from 5 pm to 11:55pm.

That is a clear huge 90 mins gap. It's like two trading session of 6 and a half and 7 hr inside one day with a break of 1 and a half hr. The break is entertainment for all type of break news, company results, economic data release, govt key decision etc.
Insider news traders, the market manipulators would be happy.

BTST STBT traders may also be interested(with F&O) when results in between that gap. But real BTST/STBT cash market overnight traders may miss the opportunity, as the market may give the desired move in evening session already. So real BTST/STBT cash market traders ko milega "babaji ka thullu".

Possibly, day traders will get another big opportunity within 5- 6:30 hr. If your stomach is full close your terminal then.

 

[Satya.]

Someone close to me and related to brokerage business informed me that extended trading session to start from 5 pm to 11:55pm.

@augubhai ji already posted d link @ mrning

http://www.traderji.com/community/threads/general-trading-chat.96368/post-1297125

 

[bpr]

Someone close to me and related to brokerage business informed me that extended trading session to start from 5 pm to 11:55pm.

That is a clear huge 90 mins gap. It's like two trading session of 6 and a half and 7 hr inside one day with a break of 1 and a half hr. The break is entertainment for all type of break news, company results, economic data release, govt key decision etc.
Insider news traders, the market manipulators would be happy.

BTST STBT traders may also be interested(with F&O) when results in between that gap. But real BTST/STBT cash market overnight traders may miss the opportunity, as the market may give the desired move in evening session already. So real BTST/STBT cash market traders ko milega "babaji ka thullu".

Possibly, day traders will get another big opportunity within 5- 6:30 hr. If your stomach is full close your terminal then.

I want to speculate somebody lobbied for this 90 minute gap. Please note how it coincide with 5PM that is end of working day for most companies.
If there is no gap up/gap down with results the insiders are going to make less money.
There is no rational for this 90 minute gap.
We will loose momentum , volume in nutshell a very bad idea and it is kind of sabotaging the whole night trading.
It is like NSE is forced to launch this and they hate it themselves.

On the other hand I understand(even though I hate it as a trader) gap is essential for closing the day and settling all derivative contracts for the day.
Nobody wants to do these activities at midnight. Also as Cash is getting closed at 3:30 it is ideal that they close the day for derivative at 3:30
But 90 minutes seriously?? 15 minutes or at most 30 minutes is ok. 90 minutes is just too much.

Ideally cash market should extend till 5 and then 5 to 5:30 derivative can take a break.

I hope BSE takes some action to teach NSE some lesson but highly doubt it.

 

[headstrong007]

@Satya. I saw it. This is extra confirmation bcoz still few day ago, there was a news published that Brokers say they would resist any move to keep trading open till midnight.
Still, some large brokers are against individual stock future trading. They want only Index F&O. But, Gormint & NSE want more volume. Still, the internal fight is on. As a result, we may see only Index F&O first. Let's see the development.

NSE is overcoming the hurdles step by step. Yes, as bpr said, some of influential bodies are forcing/restricting NSE for full implementation. Previously NSE-BSE both said there is a need for continuous hedging from Investors. Now a gap/break in most vital time! This is India.

 

[Satya.]

Ideally cash market should extend till 5 and then 5 to 5:30 derivative can take a break.

bpr ji cash mrkt ko garib bpl trdrs k liye chhod do

 

[bpr]

bpr ji cash mrkt ko garib bpl trdrs k liye chhod do

Don't worry I am not sebi head or nse head I can only whine here

 

[timepass]

The charts will be out of whack

The futures traders will either have to look at equity charts or rationalize the futures charts to match

 

[headstrong007]

The charts will be out of whack

The futures traders will either have to look at equity charts or rationalize the futures charts to match

No more equity charts after 3:30 PM, only future charts.
Just treat the night session like separate EOD with gap up or gap down. Now approx 44 EOD (as per session) per month instead of 22. Actual EOD/Weekly chart will automatically merge.

 

[timepass]

No more equity charts after 3:30 PM, only future charts.
Just treat the night session like separate EOD with gap up or gap down. Now approx 44 EOD (as per session) per month instead of 22. Actual EOD/Weekly chart will automatically merge.

But the futures charts the next morning will reflect the effect of the extended session. Imagine 20EMA on 5 min at 9:30am