Works in All Markets - Adapts to Gap Type
| Strategy Type | Gap Exploitation - Fade or Follow |
| Market Outlook | Works in All Markets - Adapts to Gap Type |
| Risk Level | Moderate to High |
| Time Horizon | Intraday to Short-Term (Same day to 3 days) |
| Best Conditions | Clean gaps with volume, news-driven moves, overnight developments, earnings reactions |
| Avoid When | Low liquidity gaps, unclear catalyst, extreme market volatility, holiday-shortened weeks |
| Global Cues | Overnight moves in US (Dow, S&P, Nasdaq), Asia (SGX Nifty, Nikkei, Hang Seng) • Major driver of Nifty gaps • Check by 8:30 AM IST |
| Sgx Nifty | Singapore-traded Nifty futures trade when NSE closed • 6:30 AM onwards IST • High correlation with NSE opening |
| Corporate News | Earnings, management changes, M&A, regulatory actions • Often released after market hours or before open • Stock-specific gaps |
| Macro Events | RBI policy, government announcements, global events • Can occur anytime • Sector or market-wide gaps |
| Pre Open | 9:00-9:08 AM - Price discovery, order matching |
| Pre Open Order Entry | 9:00-9:00 AM - Order entry period |
| Pre Open Matching | 9:08-9:15 AM - Order matching, opening price determined |
| Normal Market | 9:15 AM - 3:30 PM - Regular trading |
| Gap Assessment | 9:15-9:20 AM - First 5 minutes critical for gap analysis |
| Average Nifty Gap | 0.3-0.5% on normal days |
| Large Gap Threshold | > 1% considered significant |
| Gap Fill Rate | ~70% of gaps fill within 3 days |
| Intraday Fill | ~50% of gaps fill same day |
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