BSE, NSE Special Live Trading Session: Why Buying, Selling To Be Different In Stock Market On January 20?

The stock market will be open for trading on Saturday, January 20. Yes, you have read it, tomorrow, investors are allowed to buy or sell equities, derivatives and other market-related instruments. Both BSE and NSE have notified the same. This is part of the Sebi's guidelines for the switchover of the trading system to the Disaster Recovery (DR) Site. However, Saturday will not have the normal dynamics of trading. As an investor, you must remember certain points if you're planning to place your bets on Saturday.

Market watchdog Sebi enables Market Infrastructure Intermediaries (MIIs) to carry out test and live trading sessions for the switchover of functionality from the primary site to their Disaster Recovery site (DRS).

As per Kotak Securities, SEBI mandates stock exchanges to switch to their Disaster Recovery site in a live session as part of their business continuity plan. This ensures they have a robust backup system in place to maintain smooth operations in case of any disruptions.

Explaining in detail why Saturday's live session will be different than any other normal trading day, Anand James, Chief Market Strategist, at Geojit Financial Services said, "Investors do well to note that Saturday's trading dynamics will be different for a variety of reasons. For one, a shorter time frame as well the truncated nature of the session would mean that traders would not have enough time to get their eyes in."

James added, "Volatility may be limited, as the daily operating range would be restricted to 5% for all stocks and derivatives for the day while those already in the 2% band will continue to remain so. Also important to note that pending orders from the first session would be flushed out before the start of the second session."

Meanwhile, Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher said that in this special live trading session, investors will be able to place their buy or sell order in cash and F&O segment. However, he also added that the session will be small due to which an investor will have to place one's orders at a faster rate. Apart from this, one won't have much time to see the trends as they do in a normal trading session.

The Live Session Of Trading On BSE, NSE On January 20:

Trading will be divided into two part

The first one will be Live trading from the Primary Site. The timings are:

- Morning Block Deal Window Session-1 open time: 08:45 hrs
- Morning Block Deal Window Session-1 close time: 09.00 Hrs
- Pre-Open open time: 09.00 Hrs
- Pre-Open close time: 09:08* hrs
- Normal Market open time: 09:15 hrs
- Call Auction Illiquid session 1 open time: 09:30 hrs
- Call Auction Illiquid session 1 close time: 09:45 hrs
- Normal Market close time: 10:00 hrs

There will be a gap in trading before the second session begins. This will be Live trading from the DR Site and the timings are:

- Pre-Open open time: 11.15 hrs
-Pre-Open close time: 11:23 hrs
-Normal Market open time: 11:30 hrs
-Call Auction Illiquid session 2 open time: 11:45 hrs
-Call Auction Illiquid session 2 close time: 12:00 hrs
-Normal Market close time: 12:30 hrs
-Closing Session open time: 12:40 hrs
-Closing Session close time: 12:50 hrs
-Trade Modification end time: 13:00 hrs

Futures & Options (F&O) Segment:

Live trading from the Primary Site:

- Normal Market open time: 09:15 hrs
- Normal Market close time: 10:00 hrs

Live trading from the DR Site:

- Normal Market open time: 11:30 hrs
- Normal Market close time: 12:30 hrs
-Trade modification end time: 12:40 hrs

But before participating in the special live session on January 20, investors need to remember these five points.

- All securities (including those on which derivative products are available) will have a maximum price band of 5%. Securities already in the 2% or lower price band, shall continue to be available in the respective bands.

- Price bands of 5% will be applicable on all close-ended Mutual Funds.

- All futures contracts shall have a daily operating range of 5%.

- No flexing of securities or futures contracts shall be applicable on that day.

- The price band for equity segment and futures contracts which will be applicable at the start of the day at DC shall be applicable at DR too. Any changes in price bands of options contracts due to market factors up to the close time at the Primary site would be carried forward to the Disaster Recovery site.

These will be applicable for the Special Session only. Securities and futures contracts will revert to the regular price band structure / DPR% / dummy bands & flexing mechanism from the next trade date.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.