Closing values of NSE Nifty from 6th to 17th day of the month of January of the year 2020 were as follows: Days Date Day Sensex 1 6 THU 14522 2 7…
CA Final · Advanced Financial Management · MTP · May 2025
Closing values of NSE Nifty from 6th to 17th day of the month of January of the year 2020 were as follows: Days Date Day Sensex 1 6 THU 14522 2 7 FRI 14925 3 8 SAT No Trading 4 9 SUN No Trading 5 10 MON 15222 6 11 TUE 16000 7 12 WED 16400 8 13 THU 17000 9 14 FRI No Trading 10 15 SAT No Trading 11 16 SUN No Trading 12 17 MON 18000 Calculate Exponential Moving Average (EMA) of Sensex during the above period. The previous day exponential moving average of Sensex can be assumed as 15,000. The value of exponent for 31 days EMA is 0.062. Give detailed analysis on the basis of your calculations. Note: - Round off final calculations upto 3 decimal points.
Suggested Answer and Working Notes:
Date 1 Sensex 2 EMA for Previous day 3 1-2 4 3×0.062 5 EMA 2 + 4 6 14522 15000 (478) (29.636) 14970.364 7 14925 14970.364 (45.364) (2.812) 14967.55 10 15222 14967.55 254.45 15.776 14983.32 11 16000 14983.32 1016.68 63.034 15046.354 12 16400 15046.354 1353.646 83.926 15130.28 13 17000 15130.28 1869.72 115.922 15246.202 17 18000 15246.202 2753.798 170.735 15416.937 Conclusion - The market is bullish. The market is likely to remain bullish for short term to medium term if other factors remain the same. On the basis of this indicator (EMA) the investors/brokers can take long position.
Topics: Security Analysis
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