What Are 52-Week Low Stocks?
A 52-week low is the lowest price point at which a stock bought or sold during the course of one year. It is a technical indicator used by traders, investors, and analysts to analyze the current value of a stock to predict its price movements in the future. There is always an increased interest in a stock when its price comes close to a 52-week high or low.
52 week low NSE stocks are those stocks listed under NSE that have reached their lowest price points in a 52 week range. To determine 52 weeks low stocks, NSE takes into account those stocks which are nearing or breaching their lowest stock price in the last year. Similarly, 52 week low BSE stocks are those stocks listed under BSE that have breached their previous lowest price point. A 52-week low represents the lowest market standing of a share from a one-year perspective. This is similar to a Loser, which shows the market standing of a share on a daily, weekly, monthly, or yearly basis.
Let us consider an example to understand 52-week lows. A stock X trades at a 52 week low share price of Rs. 50. This means that in the last one year, the lowest price at which X has been traded is Rs. 50. It is also known as its support level. Once the stocks near their 52 week low, traders start buying the stock. Once the 52-week low is breached, the traders start a new short position.
How Is A 52 Week Low Determined?
The stock exchange opens and closes at a particular time every day. The stock price of every stock listed on that stock exchange is noted when the day begins. This is the price/value of a stock at the beginning of the day. This stock price fluctuates during the day and it touches high and low points throughout the day. The troughs (lows) reached by a stock price during the day are called Swing lows.
A 52-week low is determined by the closing price of a stock on a daily basis. Sometimes, a stock may reach or cross its 52-week low during the day but end up closing at a higher price. Such kinds of 52-week lows are not factored in when calculating the 52-week low of a stock. However, Traders consider coming close and still failing to breach the 52-week low a positive sign and like to monitor it closely.
BSE and NSE both publish their own 52-week low lists. For example, a NIFTY 52 week low will be a stock listed under NIFTY breaching its 52 week low price, while a SENSEX 52 week low will be a stock listed under SENSEX breaching its 52-week low price.