Various Market Studies

Weekend Gaps in Nifty

Here are couple of scatter maps showing weekend gap points in Nifty.

Re: Weekend Gaps in Nifty

These are of course based on the absolute value of the difference between Friday's close and Monday's open.

One reason for this study is that I thought there would be huge gaps so I decided to do some tests on Excel and the data shows that these gaps are quite manageable - an open position on weekends won't hurt so much by an adverse open on Monday.

Re: Weekend Gaps in Nifty

Here's a look at the daily gaps in Nifty. I'm venturing into positional trading and I wanted to know what's in store for me in terms of adverse gap opens.

Re: Weekend Gaps in Nifty


If you have a proper and consistent positional trading strategy, sometimes these gaps will work against you and sometimes they will work for you. On a longer time scale , they should eventually cancel each other out.

But major events ( Brexit etc ) are a different ball game. Personally I feel the best way to play a big event is not to play it at all.

Re: Weekend Gaps in Nifty

Well said, thanks!

Re: Weekend Gaps in Nifty

2016 is almost twice more volatile than 2015.
For ex in 2015, 80 point gap was only once in a year, in 6 months of 2016, we already have 2.

In this thread I will post some market studies which I do every now and then. These are on the Nifty index.

Here is the first one - If the open is inside the previous day's range then where is the close?

Three things can happen here

- Close is above the previous day's high
- Close is below the previous day's low
- Close is again between the previous day's range.

I wanted to check on this and ran some test on the EOD data from 2014 till date. Below is the result:



Out of 364 occasions, 49.7% of the time the close was again within previous day's range!!