While trading is definitely fun and I certainly look forward to bonus/dividends/rights etc, strictly from the technical analysis point of view, all of the corporate actions are equivalent of hurdles that companies create on daily basis to obfuscate the stock's chart and cause us to mis read the trend.
One of the Remedy is to adjust the data for all corporate actions which is easier said than done. With so many companies, it is fairly easy to miss 'em.
Announcement file that NSE disseminates on daily basis is hard to read and mouthful with same phrases repeating over and over.
I am starting this thread with aim to enumerate all the possible corporate actions and how to go about adjusting data for the same. Along the process, aim is to learn the pros and cons of adjustment and whether or not you should save the unadjusted data in same database.
As a single trader, It is impractical to manage entire database correctly so we will focus on NIFTY companies only.
If you aim to keep your database for all NSE companies, it can easily be converted into actual full-time job.
One of the Remedy is to adjust the data for all corporate actions which is easier said than done. With so many companies, it is fairly easy to miss 'em.
Announcement file that NSE disseminates on daily basis is hard to read and mouthful with same phrases repeating over and over.
I am starting this thread with aim to enumerate all the possible corporate actions and how to go about adjusting data for the same. Along the process, aim is to learn the pros and cons of adjustment and whether or not you should save the unadjusted data in same database.
As a single trader, It is impractical to manage entire database correctly so we will focus on NIFTY companies only.
If you aim to keep your database for all NSE companies, it can easily be converted into actual full-time job.