How to Calculate Daily Price variation/range of a Stock?

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How to Calculate Daily Price variation/range of a Stock and How Nifty 50 is Calculated?





    Introduction

    The daily value variation of a stock is that the distinction between its highest and lowest worth's on a given commerce day. Daily price variation may additionally visit the difference between one day' gap price and also the next day' opening price. Daily price variation may be a live of volatility, or what proportion a stock' value changes. though it's a daily measurement, average daily variations are often calculated by adding up individual daily price variations and dividing the entire by the quantity of days to identify a a lot of long-run trend.


    How to Calculate Daily Price Variation?

    To calculate the amount of a daily value variation, you'll ought to apprehend the high and low costs for a given stock on a given day. Most newspaper and on-line stock quotes give this basic information, tagged "high" and "low." cipher the smaller number from the larger number to see the daily price variation. Since it's solely a live of variation, or difference, it doesn't matter whether or not the stock gained or lost value.


    How Nifty 50 price/range is Calculated?


    Nifty 50 is calculated by weighting the value of 50 stocks listed on the NSE and is based on the free float market value. The index value is calculated based on the market value and reflects the value of the stock related to the base period. As the product of several stocks and the market price of one stock.


    Calculation


    Index value = current market value / (base market value * index base value) 

    Since Nifty's value is based on value weighting, companies with larger stocks have a greater impact on value than companies with less capital.

    It can be difficult to select an operation from a huge list of operations. This is where the stock index comes into play. The stock index reflects the general market situation. It can be used to compare stock prices over a period of time to calculate its performance. These characteristics of stock indexes make stock selection easier. General market trends can be analyzed with stock indexes. There are two main stock indexes; Nifty is an index of the National Stock Exchange (NSE) and Sensex is an index of the Bombay Stock Exchange (BSE). Nifty 50 is a combination of two words: National and Fifty. It consists of weighted shares of the 50 largest Indian companies listed on the NSE. It covers approximately 14 industries and is one of the most actively traded contracts. 

    This range means that the total movement in any discretional direction only. For fastened levels on top of and below the worth level you'll use GANN Levels, Fibonacci Levels as expressed by the opposite answers here.


    What is nifty 50 daily/monthly turnover ?

    For Nifty 50 Turnover you need to visit their Official Website for up to date results


    Conclusion

    Investors use daily worth variation data in a  exceedingly in a awfully range of ways. the info serve foremost as an indicator of volatility. A stock with a very giant daily price variation is extremely volatile and will be expected to vary its value quickly over time. once daily price variations are small, it indicates a lot of agreement inside the market regarding the worth of the stock. Stable daily price variations over time show that a stock is unlikely to increase or plummet in value on any given day. 


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