What is a 52 week low? How to calculate them?

How to low calculate them?

In the share market, 52-week low points out the lowest amount of price for which a stock has been traded all through the previous year. The current value of a stock is largely resolute by analyzing the 52-week low and it also assists in precisely forecasting the direction in which the price of the stock would move in the near future.

What occurs when the price of stock draws near the 52 Week Low?

At any time the price of the stock draws near its 52-week low amount, people who are investing in that picky stock have a high level of concern in the said stock. A large number of investors pursue a fixed strategy which engages selling the stock as quickly as its price moves below the value of the 52-week low.

They chiefly do this due to the reality that if the price of a picky stock is moving below the 52-week low value in the financial market, there is a very high likelihood that the price will continue to move in the same direction, which can then be effortlessly made positive for the concerned investor.

For Example: NSE stock future 52 week

Symbol Open High Low LTP 52w L
M&M 879 901 875.05 894.5 612
BAJFINANCE 2,063.30 2,130.00 2,056.25 2,130.00 1,301.90
COALINDIA 281 292.5 277.65 288.75 233.7
YESBANK 335.75 344 332.65 343.9 280.3
BAJAJFINSV 5,848.65 5,995.30 5,815.00 5,973.00 3,942.00
KOTAKBANK 1,276.85 1,308.40 1,270.30 1,302.15 936
HINDUNILVR 1,569.50 1,594.80 1,557.00 1,592.00 1,038.75
POWERGRID 207 211.95 207 209.5 189
ZEEL 560 563.9 553.3 563.35 458.1
TECHM 678 691.25 678 685.05 356.65
SBIN 260.5 268 259.95 266.95 232.35
HDFCBANK 2,019.70 2,053.00 2,016.30 2,050.50 1,616.15

Another effective approach preferred by investors is as follows:

Investors presume that shortlythe price of the stock obtains the value of the 52-week low, the price is going to rise and henceforth they buy the stocks quickly as possible. In order to pursue this technique and come to this solution, a large number of technical analysis is carried out to balance and add to the fundamental analysis. This guarantees that the decision that has been taken is extremely accurate and there is no place for error.

According to exchanges such as the National Stock Exchange; this 52-week low, when combined with the 52-week high; decides the entire breadth of the market in which trading of equity shares, stocks and other financial instruments takes place. Moreover, traders need to keep a sharp eye on the calculation of both 52-week highs and lows in order to avoid any major hassles.