I hope you’re all doing well. I wanted to start a discussion regarding adjusted prices for historical data after a rights issue, specifically focusing on the example of PPLPHARMA. I’ve noticed some inconsistencies in the historical closing prices provided by Zerodha/TradingView, and I’m curious to understand the methodologies behind these adjustments.
To recap, PPLPHARMA recently announced a rights issue of 5 shares for every 46 held, with a special price of Rs 71. The ex-date for this rights issue is 02-AUG-2023. Before the rights issue, we have the following historical closing prices:
26 Jul 2023 → 104.4
27 Jul 2023 → 108.55
28 Jul 2023 → 105.75
31 Jul 2023 → 104.4
01 Aug 2023 → 106.45
However, when I look at the Zerodha chart, I see different adjusted closing prices:
26 Jul 2023 → 101.95
27 Jul 2023 → 106.00
28 Jul 2023 → 103.25
31 Jul 2023 → 101.95
01 Aug 2023 → 103.95
Even more intriguingly, when I change to data view, the adjusted closing prices change again:
26 Jul 2023 → 106.00
27 Jul 2023 → 103.25
28 Jul 2023 → 101.95
31 Jul 2023 → 103.95
01 Aug 2023 → 102.95
This has left me somewhat puzzled, as I couldn’t find clear details on the adjustment methodology on the NSE India website. I did come across a methodology document from Refinitiv (https://www.refinitiv.com/content/dam/marketing/en_us/documents/methodology/corporate-actions-methodology.pdf), which sheds light on adjusted prices for various corporate actions. However, I’ve noticed that while it seems to work for splits and bonuses, it didn’t provide accurate results for rights issues.
I’m reaching out to the community to see if anyone can provide some clarity on this matter. Do you think the Zerodha/TradingView chart data is correct? Could there be a different methodology applied by Zerodha that’s causing these discrepancies? Are there any other reliable sources or documents that might shed light on how adjusted prices are calculated after a rights issue?
Your insights and experiences would be greatly appreciated.
Looking forward to your input!
I think you are talking about ticks…well it is not available because in India we don’t get second by second data because the servers are not fast enough.and internet connection and processors on servers are not powerful enough…when there is huge volatility in market sometimes those things can happen or happens every time…I saw my placed order on infosys got sold 10 rs above where stock got rejection in rejection…and other place like options call or put buying in buyers perspective it is happening daily…If you want to notice this you can try one thing …just search nifty after market closing in Google you will get a price … (closing price).Then go to tradingview and check the closing price…You will know …Another thing Zerodha and other brokers on tradingview only get silver perk equal to somewhat delayed data
Top Brokers — Verified Reviews by Actual Clients — TradingView — India see indian brokers which we are mostly using have silver level perks …
Thank you for your response. To clarify, I was referring to daily price data, not second-by-second updates. Let’s take a specific example to delve deeper into the matter. Consider the close price of PPLPHARMA on 28th Jul 2023. Here’s what I found on different platforms:
NSE India Site → 105.75
TradingView → 103.30
Kite → 103.25
These discrepancies among the three sites raise important questions about the methodology behind these adjusted prices. Why do they differ, and what factors contribute to these variations? Understanding how these adjusted prices are calculated is crucial for accurate analysis.
If anyone has insights into the underlying methodologies used by these platforms to arrive at their adjusted prices, it would greatly help.
You can refer here.
Data matching for me. In your screenshot, it shows data from August 1st as July 31st. Could you try a hard refresh (press Ctrl+Shift+R) and check again?
@Arockiya_Raja – Thank you for your response.
I did encounter this adjustment methodology as well, although I initially believed it was primarily intended for the derivatives market.
However, even after applying the adjustment factor derived from this methodology to the historical prices, I’ve noticed that the resulting adjusted prices still do not align with the figures displayed on platforms like TradingView or Kite.
This further adds to the complexity of understanding the calculation process behind these adjusted prices.
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I will check and get back on this.
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Hello @pjsaran and @Arockiya_Raja , were you guys able to figure out the process used for getting these Adjusted Prices ? Why the prices are not matching?
Regards