Buying at a 52-week low
A 52-week low is the lowest price in the last year. It can look like a bargain. The figures below show what followed new lows in Indian stocks.
What it measures
A new 52-week low is a day when the price trades below every price of the previous year.
How it is calculated
Compare the day’s low with the lowest price of the previous 250 trading days. If it is lower, it is a new 52-week low.
What happened next, in Indian stocks
These figures come from Sensifty’s monthly research and load here.
Why cheap can keep getting cheaper
A stock at a new low is cheaper than it was, but not necessarily cheap. Prices usually fall for a reason, and the reason does not stop on the day of the low. Our own tests found that stocks reaching the very bottom of their five-year range kept falling more often than not.
A note on these figures
The data covers stocks that still trade today. Companies that kept falling and were delisted are missing, which makes the results after new lows look better than they really were.
Related
Sensifty measures each of your stocks against its own history, and tells you once when a stretch cools off. Add to Chrome
Figures describe the past, among the 500 most traded NSE stocks at each date. They are not a forecast or a recommendation.