Why is the opening price of a stock different from its previous day's closing price on Kite? (2024)

FAQs

Why is the opening price of a stock different from its previous day's closing price on Kite? ›

Sometimes these prices are different. During a regular trading day, the balance between supply and demand fluctuates as the attractiveness of the stock's price increases and decreases. These fluctuations are why closing and opening prices are not always identical.

The reason for the difference between the closing price on the NSE and the last traded price (LTP) is that the LTP represents the actual last traded price, while the NSE's closing price is calculated as a weighted average of the last 30 minutes of trading.

This premarket window can affect the opening price of stock based on the demand and supply of that particular stock. In a nutshell, this causes the opening price to be different from the previous day's closing price. After market orders (AMOs) can also contribute to the difference between the closing and opening price.

Net change is the difference between the closing price of a security on the current trading day and the previous day's closing price. Even in the era of 24-hour trading, there is a closing price for a stock or other asset, and it is the last price it trades at during market hours.

Several variables influence it, including pre-market trading activity, market sentiment, supply and demand dynamics, and overnight news. Traders and investors regularly observe the starting price to evaluate market circ*mstances, make trading decisions, and determine the general market direction.

The change in price and percentage displayed is based on the preference in the Marketwatch settings. If the change is set to the open price, it may not match the change compared to the previous closing price as the absolute or percentage change is calculated using the previous day's close by default.

It is not a hard and fast rule, but rather a guideline that has been observed by many traders over the years. The logic behind this rule is that if the market has not reversed by 11 am EST, it is less likely to experience a significant trend reversal during the remainder of the trading day.

Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.

This rule suggests that a stock's price tends to move in cycles, with the first 3 days after a major event often showing the most significant price change. Then, there's usually a period of around 30 days where the stock's price stabilizes or corrects before potentially starting a new cycle [1].

When should I sell my stock? ›

Investors should aim to sell a stock after it experiences considerable growth and before it decreases in value. It is difficult to predict when a stock will start decreasing in value, but economic conditions and news reports can be good predictors.

Why do stocks spike after hours? A stock will spike after hours when there's significant news released that affects how the market values the stock. Most big after-hours stock price movement is the result of a company releasing its quarterly earnings results.

Stock prices change everyday by market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up.

During a regular trading day, the balance between supply and demand fluctuates as the attractiveness of the stock's price increases and decreases. These fluctuations are why closing and opening prices are not always identical.

Market volume and prices can and do go wild first thing in the morning, precisely the first 15 minutes. People are making trades based on the news. Power hour between 3:00 pm and 4:00 pm is also a very popular time. The best time to buy stocks is 9:30 am to 11:00 am EST because the market is most liquid.

Many different forces can affect stock prices, including company news and performance, industry performance, investor sentiment, and economic factors.

The Closing Price is not the same as the Last Traded Price

The Last Traded Price is simply determined by the demand and supply for that scrip. Whatever price the buyers and sellers traded last (i.e at 3:29:59 PM) becomes the LTP of that scrip. The Closing Price, however, is actually a calculated value.

Companies can release news after the market is closed and shift investors' sentiment. Shifting investor sentiment can change a stock's price without trades occurring.

The reason why you see the price of your option position change after the market closes, is because we have to load a different price for the product at that time of day. During the trading day, we display the prices of options, as the mid-price between the best bid and the best ask.

While the closing price simply refers to the cost of shares at the end of the day, the adjusted closing price takes dividends, stock splits, and new stock offerings into account. The adjusted closing price is a more accurate indicator of stock value since it starts where the closing price finishes.