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

[headstrong007]

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

The future chart will end at 11:55 pm as continuous (including extending trading session) with a probable gap up or down around 5 pm. 9:15 am morning gap will actually reduce from the current time. Just see other markets with a trading break in the middle for charts effect.
What you are saying will certainly reflect (extending trading session effect) in cash charts which can't grab the move after 3:30. I am eager to see the volatility in the morning due to the matching of spot and future prices in the morning for individual stocks.

Lots of market has lunch break. You can call it here snacks break. You can't call it a lunch/dinner break.

https://en.wikipedia.org/wiki/List_of_stock_exchange_trading_hours

 

[headstrong007]

I am showing the charts with NIKKEI 225-> JAPANESE MARKET with 1hr 11:30AM-12:30 PM lunch break.

Our nifty future will look like this with a gap down or up in the middle of the day.
Before October see the possible look of Nifty or Bank Nifty chart.
But we need the individual stock futures active for night session for more momentum in Index. Only index F&O is not good enough.

Hope this help.

One problem trading view doesn't show extended trading hour chart freely. It's available only with the subscription. Maybe most of the free web chart will not show extended trading sessions.
I hope paid MT4 providers/servers(outside India) will catch the extending hours. Let's see.

 

[VJAY]

IMO need totally diferent mindset to trade in index after this time extension.....nf/bnf will look like 2 faced coin....it will be totally diferent in evening session
which markets are this type of extended timings?means longer time trading?

 

[headstrong007]

which markets are this type of extended timings?means longer time trading?

NSE-BSE is following worlds most popular CME Group.

During the week, the futures markets close for 15 minutes after CASH Trading closes at 3:15 pm.
Future market opens again 3:30-4 pm. With a 60-minute break each day beginning at 4:00 p.m Market reopens again 5 PM.
It's basically a 24 hours market with a 60 min break. Additional 15 min window closing after cash market closing is probably helped for settlement etc.

https://www.cmegroup.com/trading-hours.html#equityIndex

 

[hemantmandhare]

More specifically if current profit loss target is 7-10%. We have to reduce it percentage wise, depending on how much movement size is decreasing.
Say Average intraday movement is about 30% now, where u are targetting 7-10% which is 20-30% of total movement. Now, movement size reduced to 20%, your target will also be going to reduce in the same percentage, ie 20-30% of 20% is only 4-6%.
We, need to find out the possible effect on new movement in percentage first, then we need to adjust all things mathematically.

One can calculate current profit tgt / sl in ATR terms & aim for the same ATR while trading one's strategy when extended trading is a reality..

 

[hemantmandhare]

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.

1) It is like Pre-Open trading for next day starts at 5.00 p.m. each day and ends at 11.55 !!

2) Also Intra-day trades taken at Night session can be squared off in morning (main) session as the settlement is at 3.30 p.m !!! and EOD gap is for 90 minutes only .. !!!! >>> So in principle Indian markets open @ 5 p.m. in line with western markets. !

3) this has become possible due to technology.. helping quick settlement within 90 min.! Compare this to 15 days of settlement (& Badla trading) on BSE in yesteryears till the 90s.

... Isn't it so ??

4) If yes, thus the real "Intra day(Night) Gap" is for Indians @ Night.!!!! >>>> i.e. 11.55 p.m. to 9.00 a.m !

5) FII s will hedge their positions in the night according to western markets and thus set the tone for next session..!
-> This Intra-day kind of overnight derivative trade is important Value-add for Foreign investors and also for savvy traders here...Cheers !

 

[headstrong007]

2) Also Intra-day trades taken at Night session can be squared off in morning (main) session as the settlement is at 3.30 p.m !!!

All the points are valid except above one.

Intraday trades valid from 9:15AM-11:55PM only. On settlement day it is valid for 9:15-3:30. Last Thursday from 5 pm only next month Future valid (current month expired). For bank weekly option current contract would expire 3:30 pm every thursday.


***********
My experience, many traders are excited with extending trading timing, although most of the traders are scared.

***********
It's good for dual market equity-commodity traders like me. If there is enough volume & movement in Bank Nifty and Nifty I'll stop trading Crude as a better instrument is available. MCX will lose volumes.

 

[headstrong007]

Cash market closes at 3:30 after that future market will catch the rest of the movement. But,
Many traders trade only in cash BTST, STBT and delivery trades as future trading required big capital.
Let's see how they react to the night session movement (price gap or down) in the morning.
Let's see how it affects the volatility in the morning opening.

 

[hemantmandhare]

All the points are valid except above one.

Intraday trades valid from 9:15AM-11:55PM only. On settlement day it is valid for 9:15-3:30. Last Thursday from 5 pm only next month Future valid (current month expired). For bank weekly option current contract would expire 3:30 pm every thursday.

There's no cash trading in Night session in the beginning.

F&O trades can always be squared off anytime just like intraday as there's no delivery brokerage and delivery mechanism required.

>> However, what I mean is that we may use "intraday" leverage starting trade @ night and square off timing should be at 3.20 p.m.

>> Also if cash trading for selected scrips if and when it's started @ night session may have this (intraday) kind of window @ night.

>> Just imagine Intra-day trading halt @ Japanese NIKKEI = Indian trading gap bet.n 11.55 to 9.00 !!

>> In this case we can use intraday leverage for the whole time span, i.e. 5.00 p.m. to 3.30 p.m. Next day (total 22+ hrs. including overnight gap)

>> I think this might be the reason SEBI wants only qualified traders in F&O !
>> Novice F&O traders with scant resources may not be able to withstand the overnight gap in leveraged trades. That's why this requirement for ITR etc & limit on exposures.

 

[headstrong007]

According to some news, intraday leverage is from 5pm to 3:30pm since it will be difficult to get enough back office stuff at midnight.

So practically Indian Market opens at 5pm and closes 3:30. That is a very surprising thing.

Also, that means that we have to close all type of leveraged intraday position by 3:30. We can't continue it to next session although same day! More brokerage and taxes and more volumes for NSE.