Why does the LTP for F&O contracts change in the Kite position page before the market opens?
To understand why this happens, we need to know that LTP (last traded price) at end of market trading hours and closing price are different.
The last traded price of the day is the actual last traded price. The closing price of the day on NSE is the weighted average price of the last 30 mins of trading. The closing price and settlement price will remain the same for liquid contracts.
The Settlement Price is updated in place of LTP once we receive the BHAVCOPY (daily report with OHLC data, traded value, qty, OI etc.)from NSE. This happens between 6:30 AM and 7:00 AM the next day.
Due to this, the LTP value for F&O contracts changes to the settlement price instead of the last traded price.
For illiquid contracts, if trades have not taken place in the last 30 minutes, the exchange will provide a theoretical settlement price which will be shown in place of the Last Traded Price.