Let’s understand Stock quotes - BSE Quotes

f you have ever wondered about stock market jargon and if stock quotes intimidate you, then you came to right place. Yes really!!! For beginners in the stock market

reading quotes is some what confusing task.

Reading and understanding stock quotes is a very important task for any investor. Quotes give a glimpse of almost everything about a stock.If you can read quotes, they will reveal technical and fundamental aspects of stock/stock market.

Those who are entering into the stock market, understanding of quotes should be a primary task. So, at LastBull we have taken the responsibility to teach you every thing we knew about quotes. First we are concentrating on BSE quotes in parts. Some of the terms are self explanatory in BSE quotes but others need explanation. Just reading the quotes may not be sufficient for investment decision but understanding them thoroughly, relate them with peers, digging more about the stock based on your conclusion on quotes can give you a clear picture on where to invest and when to invest….stay glued to this space for further information soon.

BSE quotes - Circuit limits

The Circuit limits for a stock indicates the maximum and minimum possible price values of a stock on that particular day. The values given on the ’stock reach’ screen are  ‘Highest possible price’/'Lowest possible price’ for that day. ‘Circuit limits’ for a stock is necessary to regulate the manipulative or one way price rigging of the Particular stock.

Generally small caps suffer from manipulative actions due to low equity capital. The percentage of circuit limit varies based on many factors. If  particular stock price increases/decreases 10% on two consecutive days then the Exchange may reduce the circuit filter to 5 %

 

BSE quotes - Bid Qty / Rate, Ask Rate / Qty

 

BSE quotes - Bid Qty / Rate

Another most important factor is the Bid Qty. It represents Bid Quantity. It shows the demand for that particular stock at that point of time. This is from buyer’s perspective.

In the above figure, the value of Bid Qty is 76 and Rate is 1820.00. Let’s try to understand what it indicates. It indicates, the demand for this share at that point of time and at a rate of 1820.00 is 76 (shares).

So, only 76 shares are in demand for that stock at that point of time? Not exactly. The ‘76’ shows the demand at highest price of Bid. The total Bid Quantity may be more if we consider all the bids. Say for example, some traders/investors may bid for shares at Rs 1819 or Rs 1700 or anywhere lower than Rs 1820. But all this quantity can’t be seen on ‘Stock reach’ screen.

BSE quotes - Ask Rate / Qty

If you understand the ‘Bid Qty / Rate’, it is easy to understand this. This is from seller’s perspective. Ask Rate is the lowest demanded price from a share holder(s) at that point of time. The Qty indicates, the total number of shares available at the ‘Ask rate’ price.

 

Circuits limits of sensex and nifty

Like circuit limits on individual stocks, there are restrictions on the movement of indices (Sensex and Nifty). There are 3 types of circuit limits 10%,15% and 20% limits. These circuit limits are applicable for the movement of the indices either in positive direction or in negative direction.

Trading in both the exchanges will come to halt if the movement exceeds the limits in any one of the exchanges.

If the 10% movement takes place before 1:00 p.m. then market will be halted for an hour and if it takes place at or after 1:00 p.m. but before 2:30 p.m. then market will be halted for half an hour. If the movement takes place after 2:30 p.m. then there won’t be any trading halt.

On resumption of trading after the halted period is elapsed, if the market hits 10% again there won’t be any halt in the trading. But if the market hits 15%, there shall be a halt of 2 hours if the movement happens before 1 p.m. If the 15% limit is breached at or after 1 p.m. but before 2 p.m. then there would be trading halt of 1 hour. If it happens after 2 p.m. then there won’t be further trading on that day.

On the resumption if the market hits 20% limit at any time during the trading hours, the trading will be suspended on that day.

These limits are put in place to stop excessive speculation and control the liquidity.

A point to be noted here is that the absolute values of these 10%, 15% and 20% limits are not based on the previous day’s close as in case of individual stocks circuit limits. These values are calculated and announced by the bourses (NSE and BSE) at the beginning of each quarter. The absolute points are calculated based on closing level of index on the last day of the trading in a quarter and rounded off to the nearest 10 points in case of Nifty. This limit is applicable for the entire quarter.

BSE Quotes - Week Ago - Close/Net Change/% and Month Ago - Close/ Net Change/ %

Week Ago - Close/ Net Change/ % :

Week ago price represents the price of the stock (LTP) exactly one week back. Net Change represents the change in the price of the stock in absolute terms with respect  to last week LTP price. And ‘%’ gives the change in price value in terms of percentage.

These quotes gives glimpse of price direction compared to last week. These quotes are more important for short term traders.

Month Ago - Close/ Net Change/ % :

These quotes also similar to above except these are for a period of month. These quotes

give clear picture than weekly change, Long term investors may need to

BSE quotes - 2 Wk Avg Qty

This gives the 2 week average quantity of a particular stock. That means it is the sum of TTQ values of a stock for last 10 days(1 week has only 5 working days for BSE in general) and divided by 10…(High School maths )..

It gives the glimpse of investors confidence on that stock. If this quantity is more than itsnormal value…we should sniff the change in the investors/traders confidence in this stockand should do more research to know the reasons before making an investment decision.

BSE quotes - LTQ/TTQ

LTQ stands for Last Traded Quantity and TTQ stands for Total Traded Quantity.

LTQ represents the total number of shares transferred in the last (latest) transaction at a particular instance in a particular day. TTQ represents the total number of shares transferred till that time in a particular day

LTQ value is more at any instance means, traders/investors are showing interest on that stock (by buying) or at the same time they are loosing confidence on that stock (by selling). Interesting right? Yes, the transaction doesn’t complete with out a buyer and a seller.

TTQ give clear picture than LTQ, if TTQ is more on particular day (i.e. volume increased) then we should analyze the stock further for the causes of sudden rise of the volume….the causes may be…good news coming from counters, more than expected

BSE quotes - Open/High/Low

You can easily understand what it is …by looking at this, right?.Yes,these quotes indicate the price of a stock on a particular day at different instances.
For example,From the figure…

Open price = 1862.00 (At this price the first transaction has been taken place on that day)
High price = 1882.80 (This is the highest price paid/received in atleast of the transaction on that day)
Low price = 1818.00 (At this price the last transaction has been taken place on that day)
So, what information you can get from the above,Of course a lot!.If the difference between highest and lowest price is high regularly, then it must have already witnessed the day traders love.Every so called day traders dream to enter the script at lowest price and exit the script at highest price(or sell at high and buy at low…short trading)..and of course fails often for many reasons!!. And for investors this price variations is next to nothing as generally the holding period is long.This price variation often influenced by market conditions.

BSE quotes - Wtd Avg Price and 52 Week - High/Low

 

Wtd Avg Price:

Wtd Avg Price = x1 * n1 + x2 * n2 + xn * nn…../ n1 + n2 +..nn

Where x1, x2, xn are the prices of the stock in different transactions and n1, n2, n3 are the quantities traded in corresponding transactions. And denominator represents the total traded quantity on that day.

I am sure you are good at maths. So You can understand it better now !

52 Week - High/Low:

This is one of the important factor in your investment decision.

It gives the Highest and Lowest values of a particular stock in a year (i.e. from today to exactly one year back (52 weeks)).

Let’s check how to get a hint on whether this is the right time to invest or not?

Just check the attached Infosys quote, 52 week high value is 2140 (on 10 Oct 2007) and lowest is 1212.20(on 22 Jan 2008) and present price is 1826.40(as on 23 May 2008). Present price is in between Highest and Lowest.

If you are a long term investor, it is a thumb rule that you get in when price is at lowest and get out when price is at highest. But GOD only knows, when the price of a share hit either lowest or highest!. So, If the company’s earnings are on track and PE ratio is good in the niche it’s better to invest when the price of a share is nearer to 52 week low.

In this case, Infosys share is in between Highest and Lowest values of that year. So it’s safe to invest at this price for longer tenure if other conditions are met.

BSE quotes - LTP/Prev. Close and Change - net/ %

    

 

LTP/prev. close:

LTP stands for Last Traded Price and Prev. close for Previous close price.As the name suggests LTP gives the Last traded price of a single stock/share.i.e. the last(latest) transaction has been taken place between a buyer and seller upon an agreed amount at that price.This LTP varies most rapidly when the market is open.

Prev close is nothing but the LTP of previous day.i.e. LTP of a particular stock at which

previous day market closes.

Change - Net/%:

It implies the change in the price of a stock in absolute terms as well as in terms of percentage.

Example: In the above figure Change is -34.30.It means that the price of the stock has lost Rs 34.30 in absolute terms.The same can be expressed in terms of percentage also.

The price of the share has lost 1.84 % of its value.These values varies continuosly(in most of the cases) when the market is open.

If we relate the above two quotes,

Prev.close - LTP = Change

1860.70 - 1826.40 = 34.30(or loss of 1.84%)

stay glued…………