52-Week Low Stocks
Stocks which touched their 52 weeks low today
Share market or stock market both of these terms have become a part of household discussions,resulting in an increased interest of the general public in stock market investing. Let us briefly describe the stock market and its different components for a better understanding of 52-week low stocks.
- Stock market: In simple terms, the stock market can be understood as a cluster of all the elements that are put together to help investors buy or sell securities remotely. It is a marketplace where various financial instruments are bought and sold, thus affecting their demand and supply, which causes variation in the prices of these instruments.
- Stock exchanges: A stock exchange acts as a mediator that facilitates the transaction of securities between the buyer and seller. It is a platform on which companies can issue securities, allowing investors to trade in those securities for various investment durations. We currently have two active stock exchanges in India: the National Stock Exchange(NSE) and the Bombay Stock Exchange(BSE).
- Securities: Security refers to all the types of financial instruments that can be traded amongst investors. Stock market securities refer to those instruments that are traded, particularly on stock exchanges, such as shares, futures, options, etc.
- Technical indicators: These refer to tools usually used by stock market traders to identify and trade in various types of securities within the share market. Technical indicators are derived mathematically based on past prices and a company's financial matrices.
What are 52-week low stocks?
Since there are a huge number of stocks listed on stock exchanges, it is important for an investor to pick the right stock for investment to generate good returns. Hence, there are various types of indicators that investors or traders use to identify and choose the right share for investment. One of the important tools or indicators investors use is the 52-week low.
A 52-week low refers to the lowest price level of a stock in the past 1 year or a 52-week period. An investor can identify a 52-week low stock by looking at the closing price of that particular share. To understand this, let's look at an example: A stock of X Industries is trading at a market price of Rs.100 per share. On the previous day, it closed at Rs. 85 per share, and according to the past data of 52 weeks or 1 year, this stock has not previously closed for a price of Rs. 85. Hence, the closing price of Rs. 85 on the previous day is the 52-week low of this stock.
It is important to understand here that the 52-week low price of a share is calculated on the basis of the closing price of a trading day. Also, for a stock or share to be categorised under the 52-week low stock category, it has to close at its 52-week low or below that.
- The 52-week low is the lowest price of a stock in the past 1 year
- In the stock market, a 52-week low stock is based on the closing price of a trading day
What does a 52-week low price of a stock indicate?
In the stock market, the forces of demand and supply cause downward or upward trends in stock prices. If a downward trend is prolonged for a sustained period, it may push the stock price down to reach its 52-week low, categorising it as a 52-week low stock. Now let us understand the various conclusions that investors can derive when 52-week low shares are identified:
- Increased supply: The price of a share in the stock market is influenced by the demand and supply of that particular share. Hence, while looking at a 52-week low stock, investors or traders can conclude that there is an increased supply in the market, which has pushed the stock price down to its 52-week low. This increased supply also indicates that this 52-week low stock is currently in a bearish trend.
- The possible occurrence of an unfavourable event: The stock prices of a particular company are also affected by any event related to the particular organisation. Therefore, when a stock hits its 52-week low, it is possible that investors may have sold the shares of that company making it a 52-week low share. Such increased selling is sometimes triggered due to negative news or events surrounding the organisation whose shares are being sold in the market.
- Liquidity concerns: A decrease in the price of a security to an extent that pushes it to a 52-week low indicates that the number of sellers for that 52-week low share is more in comparison to the buyers. Thus, a 52-week low share flags liquidity concern for the reason that there is an increase in supply for the share, but buyers are not willing to buy it, thus leading to decreased liquidity.
- Possible buying opportunity: From a buyer's perspective, buying any asset at the best price is always favourable. Similarly, in the stock market, a 52-week low share may indicate a buying opportunity for investors since such stock is available at a much lower price in comparison to previous price levels. However, an investor should do thorough research and analysis before making investing in a 52-week low share.
- Breach of previous support level: Support or resistance levels are important price levels that investors and traders use to make a buy or sell decision in the stock market. Thus, when investors are looking at a 52-week low share, it is easy to conclude that the stock has breached its previous support levels and is currently trading in a downtrend trend.
• Liquidity: Liquidity refers to the ability of a security to get converted into cash without affecting its price significantly. The higher the liquidity, the easier it is to sell or buy a security in the market.
• Downward Trends: Share prices in the stock market usually move in a trend that helps investors analyse the performance of a share in a particular time frame. A downward trend is one such trend that refers to a price movement during which a share price keeps making new lows for a sustained period of time.
• Bearish trend: A bearish trend is a widely used term in the financial sector that signifies a negative momentum in the overall status of a market. When the stock market is in a bearish trend, it refers to the state when there is a downward movement in the overall prices of the market. Investors can use indices such as Nifty 50 or Sensex to gauge the overall health of the stock market.
How to identify 52-week low stocks?
- Stock screeners - Stock screeners are a very useful tool for identifying a number of stocks based on certain criteria for easy identification of the best possible investment avenue. Through the use of screeners, investors can filter out 52-week low shares and choose the right set of stocks for investment.
- News and media sources - Financial news channels or social media sites always keep a close eye on the events that take place in the stock market. A stock hitting its 52-week low is an important event in the stock market, and hence, investors can identify 52-week stocks from the reports and articles of news and other media channels.
- Price charts - This source is primarily used by seasoned investors or traders who are familiar with the working of price charts of stocks. These price charts assist investors in identifying 52-week low shares by looking at the price trends of shares.
How can you use Univest to identify 52-week low stocks?
Univest is India’s best stock market advisory platform through which investors receive stock market recommendations in the equity, futures, and options segment. Also, under the equity segment, users receive recommendations for short, medium, and long-term. With a user base of over 30 lac+ customers, univest is constantly working towards becoming a one-stop solution for all the needs of Indian investors.
In addition to providing stock recommendations, Univest is determined to make its users well-informed decision-makers. Thus, Univest offers informative content through various channels such as blog posts, webinars, and articles to achieve this objective. Users can gain good knowledge of stock market investing by exploring these resources.
Univest currently works with an experienced team of SEBI-registered research analysts who collectively have 75+ years of experience in market research and analysis. The main focus of these analysts is to provide high-quality stock market tips to investors along with timely exit recommendations, which assist them to exit their bad investments in a timely manner.
Univest users can access these services through the tech-enabled mobile application of Univest, which is available on IOS and Android platforms. Once the users download and sign up on the app, they get access to a plethora of features and AI-based research tools that can be used for research and self-analysis of various investment opportunities.
Amongst all the tools available on the Univest app, one of the most useful tools investors can use to identify stocks is premium screeners. These screeners can help the investor to filter and segregate hundreds of stocks based on certain criteria. One such useful screener is the 52-week low stock screener. This screener helps the Univest user to filter out those stocks that are trading above or at their 52-week low price levels.
To access this screener, users must follow the below steps:
- Download and complete the signup process for the app
- After the signup process is completed, open the Univest app and locate the screener section at the bottom of the home screen
- Click on the screener option, and an interface with various screeners will be displayed
- Scroll down on the screen, and you will find the 52-week low screener under the head of general market screeners
- Click on the 52-week low screener, and you will be able to see a list of stocks that are trading at their 52-week low
• Univest is India's best investment advisory platform.
• It has a wide user base of over 30 lac users
• Stock market tips are based on the research of SEBI-registered research analysts
• The user gets access to premium screeners such as a 52-week low share screener on the Univest app
FAQs
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