Trading stocks that open with a gap and do they trend

Markets are random by nature.  We have to look for events where the market will behave in a non random fashion.

Take the stocks which opened with a gap of more than 2%, then wait for 5/15 minutes for the stock to set the opening range. Then, take the trade in the direction which is showing strength.

For analysis purpose, lets start with gap up of more than 2%, does the stock rise? Data tested from 2012.

StockName , Sum of (close-open) %, Sum of abs(close-open)%,  No of trades in 4 years

JPASSOCIAT	-27.32610219	186.49	49
HDIL	6.918107082	112.75	35
ARVIND	-15.62888451	37.44	10
ADANIENT	-5.435449073	54.09	18
HAVELLS	-21.25835332	41.05	9
MARICO	-39.96573965	59.93	21
INDIACEM	-68.85385005	124.15	37
ORIENTBANK	-42.11056829	115.61	36
AUROPHARMA	-46.51498804	91.83	20
ABIRLANUVO	-12.20098535	41.41	16
HINDPETRO	-22.54552241	80.6	29
LTFH	-26.20525764	86.26	35
TORNTPHARM	-65.52778734	95.43	40
BOSCHLTD	-18.62853516	37.35	18
JISLJALEQS	-43.31868274	101.4	28
GMRINFRA	-87.8594496	172.09	61
GAIL	-12.51424082	21.94	12
JUBLFOOD	-4.557456022	22.45	7
SRTRANSFIN	2.299413528	46.95	15
SINTEX	-23.85124559	98.82	37
SIEMENS	-15.55014222	21.18	10
SUNPHARMA	-2.391231081	22.7	14
JUSTDIAL	-15.71188357	50.5	14
ITC	2.886965737	5.11	3
APOLLOHOSP	-37.66990604	38.11	13
POWERGRID	0	0	0
GRASIM	11.04174322	11.19	4
INFY	-2.500189208	38.98	14
IGL	-13.85018987	42.93	14
RPOWER	-18.61653415	39.83	24
BHEL	16.12160525	45.63	20
GODREJCP	-89.51885313	90.26	28
BEML	-14.88913373	58.07	33
PNB	-28.62738614	59.73	18
TATACOMM	-19.49069376	88.32	32
OIL	-52.08247373	53.01	22
NIITTECH	-64.8338293	88.24	29
ALBK	-13.04923915	58.39	24
IDEA	-33.27583111	47.3	17
CROMPGREAV	-49.9852008	71.38	24
IDFCBANK	-9.65067349	9.65	7
TATACHEM	-20.10151924	25.29	13
BANKINDIA	-41.17012134	108.86	36
RCOM	4.287864937	80.79	26
MCDOWELL_N	-5.030194248	94	21
JSWENERGY	-19.23503614	149.36	40
ICICIBANK	8.120235266	39.84	26
TITAN	-17.77907956	59.17	17
IBREALEST	28.64923837	197.22	52
DISHTV	-7.809799645	49.45	21
RELINFRA	17.08722569	44.91	21
ACC	3.485578844	3.49	2
RELCAPITAL	15.13681549	75.17	28
RELIANCE	5.448744172	25.64	13
TATAELXSI	-19.61787874	26.67	13
UPL	3.918800681	5.79	4
RECLTD	14.44721147	41.51	18
AXISBANK	-2.395651934	55.77	28
JETAIRWAYS	-48.34884996	196.7	55
EICHERMOT	-74.99507894	129.14	51
JSWSTEEL	12.25074036	20.77	7
SOUTHBANK	-95.69516029	120.74	35
ASHOKLEY	-101.8843838	168.37	56
CADILAHC	-50.51199764	54.84	18
BANKBARODA	-6.932646783	67.95	21
BAJFINANCE	-40.38318483	78.94	38
ZEEL	-20.52294228	30.8	11
IRB	-34.8279921	91.9	37
TECHM	-45.58843225	69.61	18
ASIANPAINT	-5.630510755	5.63	3
WOCKPHARMA	-72.70258187	154.88	56
SBIN	-13.41877562	57	23
COLPAL	-44.48511644	46.1	14
LUPIN	-26.44000687	29.67	11
GODREJIND	-37.92813947	70.67	19
ADANIPORTS	-20.03265154	69.62	21
ANDHRABANK	-17.37331468	75.96	25
ULTRACEMCO	-8.093124692	31.9	13
IBULHSGFIN	3.853731371	41.68	13
AMBUJACEM	7.75268395	8.37	5
NCC	-92.74904606	310.37	76
FEDERALBNK	-61.58029764	92.88	37
TATAMTRDVR	-13.29062406	53.31	28
AJANTPHARM	-50.48423589	66.21	32
HINDUNILVR	-4.30677195	27.83	7
BHARTIARTL	-2.760943506	41.24	19
NTPC	7.108794797	13.48	6
HEXAWARE	-0.178899116	68.13	28
CANBK	-12.01056846	87.46	28
PFC	2.759165233	85.42	25
CUMMINSIND	-55.84490326	68.18	26
INFRATEL	-40.9635048	70.71	20
SRF	-46.21250814	106.32	38
EXIDEIND	-21.66887638	35.29	13
TATAGLOBAL	-25.69903946	52.64	17
TATAPOWER	-13.91952694	34.76	17
WIPRO	-5.162923704	16.2	10
LT	18.5049291	26.18	13
HCLTECH	-16.32849032	21.52	10
DABUR	-31.31283597	38.9	11
SYNDIBANK	-34.42217561	88.31	31
CASTROLIND	3.103825563	10.8	2
SUNTV	-7.577627704	62.85	20
TCS	-5.647374233	24.04	12
COALINDIA	-17.60770549	23.05	10
YESBANK	19.03962631	109.24	35
KOTAKBANK	-16.81416131	36.62	16
DLF	51.90427002	110.47	40
BEL	-44.58298807	92.13	29
CESC	-16.95623089	35.82	15
TORNTPOWER	-49.25612942	90.26	30
KPIT	-32.02608543	93.03	37
UNIONBANK	-34.17727551	87.42	25
NMDC	-6.231011045	39.84	17
GRANULES	-75.89438033	201.04	55
MM	-6.308605213	11.57	6
CIPLA	-11.26761811	15.09	9
OFSS	-22.42548012	30.39	16
PTC	-6.489572282	80.5	32
HDFC	-12.51945461	27.48	11
CEATLTD	-45.521239	69.88	25
PETRONET	-20.16833721	23.07	11
GLENMARK	-26.93497808	56.51	19
IDBI	-43.48651127	77.21	30
KSCL	-131.629617	209.67	79
ICIL	-731.3678047	1110.89	246
INDUSINDBK	-44.40555381	75.31	27
CAIRN	-21.22236281	57.47	22
BIOCON	-12.68110054	23.31	11
LICHSGFIN	-5.347311302	52.09	21
BHARATFORG	-17.4231582	46.18	20
MCLEODRUSS	-62.04295853	89.38	23
HINDALCO	-16.38579565	47.39	24
CONCOR	-95.64042868	117.35	40
MARUTI	-1.171339638	23.72	8
IOC	-49.4409745	61.85	22
PCJEWELLER	-82.93014342	175.21	47
DCBBANK	3.362272377	44.64	19
BRITANNIA	-21.58679726	45.79	19
PIDILITIND	-43.36076451	50.15	22
HEROMOTOCO	-20.27581526	20.28	8
PAGEIND	-84.75346482	97.97	39
NHPC	-74.29842794	98.13	27
HDFCBANK	-11.14099193	24.33	10
TATAMOTORS	19.41665744	42.91	29
BATAINDIA	-5.230801989	12.75	6
CENTURYTEX	1.969653423	36.08	18
VEDL	3.633897425	49	16
APOLLOTYRE	-50.73160818	59.29	20
DRREDDY	-8.280705509	10.73	6
TATASTEEL	-1.797890652	52.01	22
MRF	-21.95918899	26.92	13
DHFL	21.59590695	52.31	13
AMARAJABAT	-4.439943169	60.91	18
ONGC	3.323130734	47.41	21
MOTHERSUMI	-43.79802951	70.95	32
KTKBANK	-43.05275324	82.55	35
HINDZINC	-54.70236533	68.74	23
STAR	-70.41790671	80.6	21
ADANIPOWER	-56.99759995	113.94	45
BAJAJ_AUTO	-10.34207351	14.3	7
SAIL	1.993593884	47.59	22
TV18BRDCST	-61.1422626	226.33	55
BPCL	2.311829919	54.47	21
MINDTREE	-45.91844294	64.12	28
DIVISLAB	-24.82082949	45.18	15
JINDALSTEL	-23.03375172	95.34	30
UBL	-51.5736475	58.57	18
VOLTAS	-22.43468784	76.88	23
MMFIN	-64.98440681	93.73	30
BHARATFIN	0	0	0
TVSMOTOR	-140.0207785	183.65	50
IFCI	-23.62337616	104.79	37
IDFC	-3.258244886	81.15	27

Total trades : 4255
Total sum of % change(2nd column) : -5031%. Gaps getting filled.
Total sum of abs change : 12570.

2.95% change per trade.

The results look, stocks seem to be trending after a gap up.

Let's take a look from the gap down of more than 2%.

StockName, sum of % Change open -close, Sum of absolute % change open-close, no of trades

JPASSOCIAT	16.2	138.15	39
HDIL	-2.96	161.84	36
ARVIND	-6.44	29.34	12
ADANIENT	72.16	143.45	17
HAVELLS	-18.38	36.78	10
MARICO	-11.42	18.29	10
INDIACEM	-64.62	115.8	32
ORIENTBANK	-2.53	66.61	25
AUROPHARMA	-23.99	55.85	19
ABIRLANUVO	-11.69	51.2	13
HINDPETRO	-30.11	71.26	14.00
LTFH	-13.61	36.1	13
TORNTPHARM	-57.08	90.08	28
BOSCHLTD	-6.75	12.81	5.00
JISLJALEQS	-12.28	81.72	24.00
GMRINFRA	-39.73	114.21	39
GAIL	-7.41	10.16	8
JUBLFOOD	-24.72	35.6	10
SRTRANSFIN	-32.07	75.41	19
SINTEX	-12.97	82.87	23
SIEMENS	-4.12	7.48	4
SUNPHARMA	-5.05	28.73	13.00
JUSTDIAL	-1.02	43.47	14
ITC	-3.41	3.41	2
APOLLOHOSP	-7.38	18.79	7
POWERGRID	-0.35	16.51	4.00
GRASIM	-1.84	7.53	3
INFY	30.27	41.48	13
IGL	19.36	29.16	4
RPOWER	15.21	28.12	9
BHEL	12.52	49.57	13
GODREJCP	-73.45	73.6	12
BEML	-25.02	66.62	29.00
PNB	-5.9	44.52	15
TATACOMM	-15.53	39.11	12
OIL	-4.99	26.61	13
NIITTECH	-55.04	80.99	33
ALBK	-28.98	52.1	15
IDEA	-50.62	63.75	20
CROMPGREAV	-33.62	69.57	20
IDFCBANK	7.53	7.53	3
TATACHEM	-4.15	26.9	10
BANKINDIA	11.92	62.87	22
RCOM	-16.65	71.49	17
MCDOWELL_N	-73.52	94.45	18
JSWENERGY	-63.17	110.63	32.00
ICICIBANK	5.25	22.88	12
TITAN	-17.36	50.7	13
IBREALEST	3.02	101.82	28
DISHTV	-55.98	82.05	23
RELINFRA	3.78	56.11	12
ACC	-17.73	17.73	7
RELCAPITAL	-10.72	54.21	14.00
RELIANCE	5.25	9.67	4
TATAELXSI	-45.87	83.96	21.00
UPL	12.34	18.19	7.00
RECLTD	5.25	48.94	16
AXISBANK	16.94	52.21	19
JETAIRWAYS	-49.46	116.18	31
EICHERMOT	-16.46	43.68	16
JSWSTEEL	-21.74	35.55	9.00
SOUTHBANK	-51.65	52.89	14.00
ASHOKLEY	-113.38	139.88	31
CADILAHC	-14.19	28.52	12
BANKBARODA	-19.2	33.22	14
BAJFINANCE	-45.48	65.37	20
ZEEL	-23.64	31.22	12
IRB	-7.85	88.96	25
TECHM	-17.76	47.19	16
ASIANPAINT	7.40	8.27	6
WOCKPHARMA	-96.04	160.31	51
SBIN	-16.88	39.62	14
COLPAL	-30.54	32.97	10
LUPIN	-34.55	39.57	11
GODREJIND	-27.51	51.15	10.00
ADANIPORTS	-38.8	56.6	17
ANDHRABANK	-9.44	50.66	15
ULTRACEMCO	-40.18	42.18	12
IBULHSGFIN	-6.78	53.94	21.00
AMBUJACEM	-14.61	21.71	11
NCC	-18.15	133.37	35
FEDERALBNK	-9.07	42.56	21
TATAMTRDVR	-19.13	64.98	21
AJANTPHARM	-14.14	60.45	18
HINDUNILVR	-4.81	5.29	3.00
BHARTIARTL	-17.97	34.59	10
NTPC	17.55	20.71	5
HEXAWARE	-38.39	45.86	15
CANBK	8.85	72.95	23
PFC	-5.41	32.09	14
CUMMINSIND	-26.23	26.23	6
INFRATEL	-130.12	164.1	43
SRF	-31.1	92.87	29
EXIDEIND	-31.19	37.67	13.00
TATAGLOBAL	-38.24	39.55	11
TATAPOWER	-24.2	42.94	13
WIPRO	8.29	31.26	15
LT	1.18	21.3	9
HCLTECH	-2.82	30.99	15.00
DABUR	-7.7	18.26	9
SYNDIBANK	-3.3	58.34	20
CASTROLIND	3.89	7.48	2
SUNTV	7.93	95.81	20
TCS	7.06	15.86	10
COALINDIA	-7.23	18.93	12.00
YESBANK	20.01	65.57	17
KOTAKBANK	3.41	17.27	10.00
DLF	22.64	130.85	33
BEL	-33	58.36	20
CESC	9.72	35.97	11.00
TORNTPOWER	-12.88	44.98	13
KPIT	-41.88	128.09	20
UNIONBANK	-7.25	91.61	26
NMDC	-15.32	34.51	18
GRANULES	-47.62	76.22	17
MM	-5.85	19.4	9
CIPLA	10.63	10.63	3.00
OFSS	-13.94	37.18	14
PTC	-48.77	76.29	21.00
HDFC	2.82	9.48	6
CEATLTD	-127.23	149.91	40.00
PETRONET	-17.09	28.58	13.00
GLENMARK	-26.91	35.52	15
IDBI	-21.2	61.05	17
KSCL	-103.22	119.09	31
ICIL	-843.02	952.07	212
INDUSINDBK	3.56	32.62	11
CAIRN	-1.74	55.87	20.00
BIOCON	-15.66	30.77	7
LICHSGFIN	-10.1	32.65	9
BHARATFORG	-12.17	23.03	11
MCLEODRUSS	-34.88	57.19	12
HINDALCO	-26.71	55.35	22
CONCOR	-30.21	50.34	21
MARUTI	3.93	20.72	9.00
IOC	-33.44	46.33	17.00
PCJEWELLER	-9.99	57.56	25
DCBBANK	16.39	28.83	6
BRITANNIA	-47.58	49.86	8
PIDILITIND	-12.76	19.57	11.00
HEROMOTOCO	-8.35	11.47	6
PAGEIND	-31.62	48.33	22.00
NHPC	-54.90	56.13	10.00
HDFCBANK	4.90	5.68	3
TATAMOTORS	0.30	58.11	21.00
BATAINDIA	-28.16	49.27	20
CENTURYTEX	-17.09	53.88	16
VEDL	9.2	67.7	14
APOLLOTYRE	10.25	74.29	14
DRREDDY	-6.25	8.79	5
TATASTEEL	-3.53	46.96	14.00
MRF	-12.71	16.04	6
DHFL	-2.34	65.91	19.00
AMARAJABAT	-62.64	76.35	17
ONGC	-0.02	30.35	15
MOTHERSUMI	-54.38	92.23	24
KTKBANK	-39.68	76.6	16
HINDZINC	-32.86	32.86	15
STAR	-61.71	96.66	19
ADANIPOWER	8.28	67.00	21.00
BAJAJ_AUTO	4.15	9.59	5
SAIL	-6.84	40.34	13.00
TV18BRDCST	-38.97	76.3	29
BPCL	-0.03	27.74	11
MINDTREE	-23.77	41.19	14
DIVISLAB	-19.01	19.01	6
JINDALSTEL	-15.41	127.8	31
UBL	-12.96	48.88	15
VOLTAS	-45.61	71.98	24
MMFIN	-30.35	49.92	14
BHARATFIN	0.00	0	0
TVSMOTOR	-71.71	80.62	28
IFCI	-96.71	167.07	27
IDFC	20.68	69.01	16

In gap down, movement is good.

Total trades : 2984.
Total sum of open -close % (2nd column): -4069. => Gaps filled.
Sum of absolute change(3rd column) : 10252.

It shows a movement of 3.43% per trade.

The above also shows gaps are often filled. Now, further study needs to be done on the Opening range breakout on the stocks with a gap.

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Option charts for last month expiry.

Option charts for last month expiry. Strike Price choosen is Setltement Monday means Monday before Thursday expiry.

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Python script for finding NR7 stocks

It is difficult to upload the NR7 stocks everyday. So, I am sharing the python script here.

import re
import urllib2
import json
import matplotlib.pyplot as plt
import time


print("NR7 Stocks")
def check(stockname):
   

    proxy_support = urllib2.ProxyHandler({"http":"http://61.233.25.166:80"})
    opener = urllib2.build_opener(proxy_support)
    opener.addheaders = [('User-agent', 'Mozilla/5.0')]
    urllib2.install_opener(opener)
   
    url="https://www.google.com/finance/getprices?q="+stockname+"&x=NSE&i=86400&p=7d&f=d,c,h,l,o,v"
    html = urllib2.urlopen(url).read()
 
    min_diff=1000000
    for line in html.split()[7:]:
        diff=float(line.split(',')[2])-float(line.split(',')[3])
      
        if(min_diff>diff):
            min_diff=diff
        #print(stockname,diff,min_diff,float(line.split(',')[2]),float(line.split(',')[3]))
    if(abs(diff-min_diff)<0.01):
        print(stockname)
    return;
  

symbolslist=["ABIRLANUVO", "ACC", "ADANIENT", "ADANIPORTS", "ADANIPOWER", "AJANTPHARM", "ALBK", "AMARAJABAT", "AMBUJACEM", "ANDHRABANK", "APOLLOHOSP", "APOLLOTYRE", "ARVIND", "ASHOKLEY", "ASIANPAINT", "AUROPHARMA", "AXISBANK", "BAJAJ-AUTO", "BAJFINANCE", "BANKBARODA", "BANKINDIA", "BATAINDIA", "BEL", "BEML", "BHARATFIN", "BHARATFORG", "BHARTIARTL", "BHEL", "BIOCON", "BOSCHLTD", "BPCL", "BRITANNIA", "CADILAHC", "CAIRN", "CANBK", "CASTROLIND", "CEATLTD", "CENTURYTEX", "CESC", "CIPLA", "COALINDIA", "COLPAL", "CONCOR", "CROMPGREAV", "CUMMINSIND", "DABUR", "DCBBANK", "DHFL", "DISHTV", "DIVISLAB", "DLF", "DRREDDY", "EICHERMOT", "ENGINERSIN", "EXIDEIND", "FEDERALBNK", "GAIL", "GLENMARK", "GMRINFRA", "GODREJCP", "GODREJIND", "GRANULES", "GRASIM", "HAVELLS", "HCLTECH", "HDFC", "HDFCBANK", "HDIL", "HEROMOTOCO", "HEXAWARE", "HINDALCO", "HINDPETRO", "HINDUNILVR", "HINDZINC", "IBREALEST", "IBULHSGFIN", "ICICIBANK", "ICIL", "IDBI", "IDEA", "IDFC", "IDFCBANK", "IFCI", "IGL", "INDIACEM", "INDUSINDBK", "INFRATEL", "INFY", "IOC", "IRB", "ITC", "JETAIRWAYS", "JINDALSTEL", "JISLJALEQS", "JPASSOCIAT", "JSWENERGY", "JSWSTEEL", "JUBLFOOD", "JUSTDIAL", "KOTAKBANK", "KPIT", "KSCL", "KTKBANK", "LICHSGFIN", "LT", "LUPIN", "MARICO", "MARUTI", "MCDOWELL-N", "MCLEODRUSS", "MINDTREE", "MOTHERSUMI", "MRF", "NCC", "NHPC", "NIITTECH", "NMDC", "NTPC", "OFSS", "OIL", "ONGC", "ORIENTBANK", "PAGEIND", "PCJEWELLER", "PETRONET", "PFC", "PIDILITIND", "PNB", "POWERGRID", "PTC", "RCOM", "RECLTD", "RELCAPITAL", "RELIANCE", "RELINFRA", "RPOWER", "SAIL", "SBIN", "SIEMENS", "SINTEX", "SOUTHBANK", "SRF", "SRTRANSFIN", "STAR", "SUNPHARMA", "SUNTV", "SYNDIBANK", "TATACHEM", "TATACOMM", "TATAELXSI", "TATAGLOBAL", "TATAMOTORS", "TATAMTRDVR", "TATAPOWER", "TATASTEEL", "TCS", "TECHM", "TITAN", "TORNTPHARM", "TORNTPOWER", "TV18BRDCST", "TVSMOTOR", "UBL", "ULTRACEMCO", "UNIONBANK", "UPL", "VEDL", "VOLTAS", "WIPRO", "WOCKPHARMA", "YESBANK", "ZEEL"]
index=0
while(index<len(symbolslist)):
    check(symbolslist[index])
    index=index+1
    #time.sleep(1)

Script Link

http://pastebin.com/KQH5PYcn

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