Understanding 52-Week Low Stocks
The prices at which shares are bought and sold on the NSE and the BSE fluctuate based on the demand and supply. When a stock touches its lowest price on any of the two exchanges in the past year (or 52 weeks), it is recorded as a 52-week low on that exchange.
52-week low stocks are the shares of companies that have reached their lowest trading price in one year. Investors and traders tend to focus on these stocks for different reasons. Typically, when a stock nears its 52-week low, it may present an opportunity for investors to buy low and sell high at a later date.
How are Stocks Near 52-Week Low Identified?
To identify 52-week low shares, the closing prices of the stocks on the NSE and the BSE are considered and compared. When the closing price of a stock hits its lowest point in 52 weeks, it is tagged as a 52-week low.
Often, the price of a stock may touch or move below its current 52-week low during a trading day, but it may rise and close higher by the end of the trading session. This means the stock has not breached its previous 52-week low. Nevertheless, it’s a good idea to monitor such stocks near their 52-week lows or breach them during a trading session.
How to Find 52-Week Low Stocks?
Both the primary stock exchanges in India publish their lists of the stocks that hit their 52-week lows each trading day. One of the easiest ways to find 52-week low stocks on the NSE and the BSE is to check these lists.
Alternatively, you can also set up a 52-week low stock screener on your preferred trading app or mobile trading platform to be notified whenever a stock hits this level. This makes it easier for you to track good stocks at their 52-week lows.
Benefits of the 52-Week Low Share List
Tracking the stocks that hit their 52-week low share prices can offer many advantages to traders and investors alike. They include:
- Identification of value stocks: The list can potentially highlight fundamentally strong stocks at their 52-week low, so traders can buy good stocks at a bargain.
- Reassessment triggers: For companies, hitting the 52-week low may be a trigger to reassess their business operations and financial strategies.
- Market sentiment analysis: An increase in the number of stocks nearing 52-week lows or hitting this point may indicate an overall bearish mood in the market.
- Importance in technical analysis: Traders using technical analysis may find the 52-week low NSE and BSE lists useful in spotting oversold conditions.