What Are 52-Week High Stocks?
A 52-week high is the highest price point at which a stock has been traded during the course of one year. It is a technical indicator used by traders, investors, and analysts to analyze the current value to predict its price movements in the future. As a result, there is an increased interest in a stock when its price comes close to a 52-week high or low.
52 week high NSE stocks are those stocks listed under NSE that have peaked in a 52 week range. To determine 52 weeks high stocks, NSE takes into account those stocks which are nearing their highest stock price in the last year. Similarly, 52 week high BSE stocks are those stocks listed under BSE that have peaked in the previous year.
To understand this better, let us look at an example. Let us assume that a stock X trades at a 52 week high share price of Rs. 100. This means that in the last one year, the maximum price at which X has been traded is Rs. 100. It is also known as its resistance level. Once the stocks near their 52 week high, traders start selling the stock, and once the 52-week high is breached, the traders start a new long position.
You can understand the significance of a 52-week high in the sense that it represents the market standing of a share from a one-year perspective. This is in contrast to a Gainer, which shows the market standing of a share on a daily, weekly, monthly, or yearly basis.
How Is A 52 Week High Determined?
Every day, the stock exchange opens and closes at a specific time. Every stock listed under that stock exchange opens at a particular stock price. This is the price/value of a stock at the beginning of the day. This stock price fluctuates during the day like a wave, and it can touch high and low points throughout the day. The crests (highs) reached by a stock price during the day are called Swing Highs.
A 52-week high is determined by the closing price of a stock on a daily basis. Sometimes, a stock may reach or cross its 52-week high during the day but end up closing at a lower price. Such kinds of 52-week highs are not considered. However, coming this close and still failing to register a new 52-week high is something trade analysts watch very closely.
Every stock exchange index in India marks its own 52-week highs. For example, a NIFTY 52 week high will be a stock listed under NIFTY breaching its 52 week high price, while a SENSEX 52 week high will be a stock listed under SENSEX breaching its 52-week high price.