InvestorQ : when market close how next day gapup opening and gap down opening is possible in nifty future anyone know please ans me.
shaik aarif made post

when market close how next day gapup opening and gap down opening is possible in nifty future anyone know please ans me.

Answer
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Dawn Cherian answered.
1 year ago


Nifty futures gap up and gap down is driven by 3 broad reasons. Firstly, when there is overnight risk like worsening of the trade war or BREXIT concerns then you have a gap down in the Nifty futures the next day. Secondly, the SGX Nifty that starts trading well before the spot Nifty is also a good gauge for gap or gap down on the Nifty futures since SGX itself is representative of futures. Thirdly, if the Nifty heavyweights are expected to be under pressure then the Nifty futures open gap down in tandem with that view.