Gap analysis

Gap up opening – A gap up opening indicates buyer’s enthusiasm. Buyers are willing to buy stocks at a price higher than the previous day’s close. Hence, because of an enthusiastic buyer’s outlook, the stock (or the index) opens directly above the previous day’s close
Gap down opening – Similar to gap up opening, a gap down opening shows the enthusiasm of the bears. The bears are so eager to sell confirming that they are willing to sell at a price lower than the previous day’s close.