Confused on Today's Close and LTP

[vikassethi]

Can anyone tell me the difference between Today's Close and Last Traded price. In some of the stock I track I see a difference in these two rates.

 

[joy_verma]

HI VIKAS,
last traded price is last traded price of the day. today's close is
adjusted close i,e average rate for last 30 min of the day
regards
vinay

 

[vikassethi]

Thanks for the quick response. Which one is more important for technical analysis or even if we dont want to do technical analysis, which one is a better indicator of closing price?

 

[amit_shriv]

Thanks for the quick response. Which one is more important for technical analysis or even if we dont want to do technical analysis, which one is a better indicator of closing price?

Adjusted close.

 

[jdm]

Thanks for the quick response. Which one is more important for technical analysis or even if we don't want to do technical analysis, which one is a better indicator of closing price?

very dice question. basically vary from person to person. if you are doing analysis for a short time 5 - 10 days, particularly intraday data analysis, the last traded price is more suitable. but if your analysis is for 5 - 10 years closing price is fine.

 

[murthymsr]

very dice question. basically vary from person to person. if you are doing analysis for a short time 5 - 10 days, particularly intraday data analysis, the last traded price is more suitable. but if your analysis is for 5 - 10 years closing price is fine.

hi jdm,

a word of caution about giving excessive importance to Last Traded Price ( or should i call it, Last Tick Price !).

depending on the data source, if the stock is not traded on the last trading day, th LTP may be the Last traded price of the Last Traded Day. in such cases, the Close price will be zero.

the LTP may be more inflenced by the market condition than the Close price.

murthymsr

 

[vikassethi]

Thank you all for your advise. Perfectly understood!

 

[aca_trader]

the LTP may be more inflenced by the market condition than the Close price.

murthymsr

Hi Murthy!

In my humble opinion, this is the very reason why LTP should be given more importance and should be taken as real close because this is the price ultimately to which the buyers and sellers have agreed to. In case, the last 30 minutes are very volatile, the gap between LTP & Close may be very significant and may not make the analysis that helpful.

However, there is another & practical side to it and that is if most of the traders take the 30-minute average close as close, they would most probably take their decision based upon this close and hence a person treating LTP as close may not be moving in sync with the market thereby increasing the risk.

Best Regards,
--Ashish

 

[jdm]

hi jdm,

a word of caution about giving excessive importance to Last Traded Price ( or should i call it, Last Tick Price !).

depending on the data source, if the stock is not traded on the last trading day, th LTP may be the Last traded price of the Last Traded Day. in such cases, the Close price will be zero.

the LTP may be more inflenced by the market condition than the Close price.

murthymsr

oooopppppppssss

when we are talking about about tracking 5-10 days price movement its understood we are talking about a liquid script. and by the way do such script which are fortunate enough to generate 50-60 odd trades in a year, do actually mean any thing on any graph. as you said "the closing price will be zero" is true for daily prices also.

besides when one trades in a newly listed script theres absolute no historical data. then one has no option but to relay on intraday data, where the last traded price is more appropriate.

cheers,
jdm.

 

[murthymsr]

Hi Murthy!

In my humble opinion, this is the very reason why LTP should be given more importance and should be taken as real close because this is the price ultimately to which the buyers and sellers have agreed to. In case, the last 30 minutes are very volatile, the gap between LTP & Close may be very significant and may not make the analysis that helpful.

However, there is another & practical side to it and that is if most of the traders take the 30-minute average close as close, they would most probably take their decision based upon this close and hence a person treating LTP as close may not be moving in sync with the market thereby increasing the risk.

Best Regards,
--Ashish

hi ashish,

yes i agree, the LTP is not given the importance as, probably it deserves, at least, as far as next day morning's trading is concerned. most of the TA software do not take the LTP into consideration at all. further, the LTP is more often inflenced by end of day sentiments, and is more often less than the close and is easily manipulatable, particularly in low volume stocks.

for example, on today's data, following are the observations on the stocks traded on NSE.

the two stocks with the highest & lowast ratios are given below.
total stocks (EQ series) traded today= 801

REVL qty=1094 Last=380.00 CL=404.30 Last/CL 94% (Lowest)

VIPIND qty=22102 Last=130.00 CL=118.25 Last/CL= 110% (Highest)

of course, such large variations are more likely in low volume stocks.

changes in Close prices stand more to logic than changes in LTP.

30 mins correspond to about 9 % of the total traded time.

if Close price is determined by the weighed average price of the last say, 1 or 2 % of the day's traded volume, it may be more meaningful. this may bring the best of both methods but it is never done anywhere like that.

anyway thanks for opening the highly stimulating topic, though hypothetical.

murthymsr