Glossary

Stock market glossary

Plain-English definitions of common NSE cash and F&O terms — including how each one is read and, importantly, what it does not tell you.

52-Week High / Low

The 52-week high is the highest price at which a security has traded over the trailing one-year period, and the 52-week low is the lowest pr…

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ATR (Average True Range)

ATR (Average True Range) is a volatility measure that summarises how much an instrument's price has moved, on average, over a chosen lookbac…

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Bear Trap

A bear trap is a chart pattern in which price briefly breaks below a recognised support level — suggesting a downside breakdown — and then q…

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Breakout

A breakout is when a stock's or index's price moves beyond a previously defined boundary — such as the top of a trading range, a swing high …

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Bull Trap

A bull trap is a chart pattern in which the price of a stock, index, or F&O instrument moves above a recognised resistance level or prior sw…

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Circuit Limits (Price Bands)

On NSE, a circuit limit (price band) is the maximum percentage a security's price is allowed to move in a single trading session, measured f…

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Delivery Percentage

Delivery Percentage is the share of a stock's total traded quantity on a given day that was settled by actual delivery of shares into demat …

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False Breakout

A false breakout occurs when price moves beyond a defined level such as a support, resistance, trendline, or the day's opening range, but fa…

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Muhurat Trading

Muhurat Trading is a short, ceremonial trading session that the NSE and BSE conduct on the evening of Diwali (Laxmi Pujan), considered an au…

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Open Interest

Open Interest (OI) is the total number of futures or options contracts that are currently open and not yet settled, closed out, or exercised…

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Securities Transaction Tax (STT)

Securities Transaction Tax (STT) is a statutory tax levied by the Government of India on the purchase and sale of securities that trade on a…

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Short Covering

Short covering is when traders who had earlier sold (gone short) a stock or F&O contract buy it back to close those positions. Because closi…

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Support and Resistance

Support and resistance are price zones on a chart where buying or selling interest has historically clustered, causing price to pause, slow,…

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T+1 Settlement

T+1 settlement is the Indian cash-market rolling settlement convention in which a trade executed on a trading day (T) is settled one trading…

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VWAP (Volume Weighted Average Price)

VWAP is the average price at which a stock, index, or contract has traded over a chosen period, weighted by the volume done at each price. O…

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