3.2What is the previous closing price?
1What is it?
The previous close is the official closing price of the last trading day.
2Why does it exist?
Today’s gain or loss is measured from it. "Up 2% today" means 2% above the previous close.
3Stock market example
NSE’s closing price is not just the last trade. It is the weighted average price of the last 30 minutes (3:00 to 3:30 p.m.), which makes it harder to manipulate.
4Calculation
Day change % = (LTP − Previous close) ÷ Previous close × 100
- Previous close = ₹1,000; LTP = ₹1,025
- (1,025 − 1,000) ÷ 1,000 × 100 = 2.5%
The stock is up 2.5% today.
5Quick revision
- Previous close = yesterday’s official close.
- Daily % change is measured from it.
- On NSE it is a 30-minute weighted average.
6Knowledge check
Q1. Previous close ₹200, LTP ₹190. Day change %?Show answer
(190 − 200) ÷ 200 × 100 = −5%.
Q2. Is NSE’s closing price simply the last trade?Show answer
No. It is the weighted average of the last 30 minutes.
Q3. Why is the previous close important?Show answer
Daily gain or loss is measured against it.
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