Stock market glossary: indicators, F&O and ratios explained
32 concepts Indian investors meet every day, each explained with its exact formula, how to read it, the common mistakes, and a live list of NSE stocks that match it right now. Every page ends in the screener or tool that puts the idea to work.
Technical indicators
RSI (Relative Strength Index)A 0-100 momentum oscillator: how strong recent up-moves are compared with down-moves.MACD (Moving Average Convergence Divergence)Trend-following momentum from the gap between a fast and a slow moving average.Moving averages (SMA, EMA, 50 and 200 DMA)The average closing price over a window, used to define the trend.Golden cross and death crossThe 50-day average crossing above (golden) or below (death) the 200-day average.ADX (Average Directional Index)Measures how strong a trend is, whatever its direction.SuperTrend indicatorA volatility-based trailing line that flips between buy and sell.Bollinger Bands and the squeezeA 20-day average with bands two standard deviations above and below.VWAP and anchored VWAPThe average price paid, weighted by volume, over a chosen period.Relative strength (RS) and RS ratingHow a stock has performed compared with the market or its sector. Not the same as RSI.Bullish and bearish divergencePrice and an indicator disagreeing about the trend's strength.Support and resistancePrice zones where buying (support) or selling (resistance) has repeatedly stepped in.Candlestick patternsSingle- and multi-bar price shapes that summarise the battle between buyers and sellers.
Price, volume and breadth
52-week high and lowThe highest and lowest price of the last year (about 250 sessions).Relative volume (RVOL) and volume breakoutsToday's volume divided by the stock's normal volume.Market breadthHow many stocks are participating in a market move, not just the index.Delivery percentageThe share of traded volume that was actually delivered, not squared off intraday.
Futures, options and institutional flows
Long buildup, short buildup, short covering, long unwindingThe four combinations of price change and open-interest change in futures.Open interest, option walls and put-call ratioOutstanding derivative contracts, and what the strikes with the most OI suggest.FII and DII activityNet buying or selling by foreign and domestic institutional investors.Bulk deals and block dealsLarge trades that must be disclosed publicly, naming the buyer or seller.India VIXThe market's expected volatility for the next 30 days, from Nifty option prices.
Fundamental ratios
P/E ratio (price-to-earnings)How many rupees investors pay for one rupee of annual profit.ROE (return on equity)Annual profit as a percentage of the shareholders' money in the business.ROCE (return on capital employed)Operating profit as a percentage of all the capital a business uses, debt included.Debt-to-equity ratioBorrowings compared with shareholders' funds, the basic leverage measure.Dividend yieldThe annual dividend per share as a percentage of the share price.P/B ratio (price-to-book)Market value compared with the accounting value of shareholders' equity.PEG ratioP/E divided by the profit growth rate, to compare fast and slow growers.Market capitalisation: large, mid and small capsCompany size by stock-market value, and SEBI's large/mid/small cap definitions.Promoter holding and pledgingThe share of a company owned by its founders or controlling group.
