Closing values of NSE Nifty from 8th to 21st day of the month of January of the year 2026 were as follows: Days Date Day Nifty 1 8 THU 25877 2 9 FRI…

CA Final · Advanced Financial Management · RTP · May 2026
Closing values of NSE Nifty from 8th to 21st day of the month of January of the year 2026 were as follows: Days Date Day Nifty 1 8 THU 25877 2 9 FRI 25683 3 10 SAT No Trading 4 11 SUN No Trading 5 12 MON 25790 6 13 TUE 25732 7 14 WED 25665 8 15 THU 25694 9 16 FRI 25694 10 17 SAT No Trading 11 18 SUN No Trading 12 19 MON 25585 13 20 TUE 25232 14 21 WED 25158 Give detailed analysis (on the basis of your calculations) of 21- day Exponential Moving Average (EMA) of Nifty during the above period. The previous day exponential moving average of Nifty can be assumed as 26024. Note: Round off calculations upto 3 decimal points.

Suggested Answer and Working Notes:

EMA t = (Closing Price of the day – EMA of Previous Day) x Exponent + Previous day EMA Exponent = 2 / (n+1) i.e. 2 / (21+1) = 0.091 Date 1 Sensex 2 EMA for Previous day 3 1-2 4 3×0.091 5 EMA 2 + 4 8 25877.000 26024.000 -147.000 -13.377 26010.623 9 25683.000 26010.623 -327.623 -29.814 25980.809 12 25790.000 25980.809 -190.809 -17.364 25963.445 13 25732.000 25963.445 -231.445 -21.062 25942.383 14 25665.000 25942.383 -277.383 -25.242 25917.141 16 25694.000 25917.141 -223.141 -20.306 25896.835 19 25585.000 25896.835 -311.835 -28.377 25868.458 20 25232.000 25868.458 -636.458 -57.918 25810.540 21 25158.000 25810.540 -652.540 -59.381 25751.159 Conclusion: The market is bearish. The market is likely to remain bearish for short term to medium term if other factors remain the same. On the basis of this indicator (EMA) the investors/brokers can take short position.

Topics: Security Analysis

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