Thursday, April 16, 2009

How to calculate Nifty Moving Average?

Good question, lots of people have confusion in understanding how to calculate Moving averages. Here's a excel spreadsheet where I have calculated moving average of Nifty index (Indian markets). 

The spreadsheet has 10,20,50,100 and 200 day moving averages. The formula is simple - for any given day, take the last 10,20,50,100,200 observations respectively just before that day and calculate a simple average using excel function average(). That is your average. When you do the calculation of next day, you get a new average, and so now you have your moving average series. Check it out, quite simple.

1 comment:

  1. Hi PI,

    Nifty is trading at nearby levels of 6100 from past couple of sessions. What are your views about this rally? Will Nifty be range bounded at 6100 or will it break this barrier of 6100?

    Best Regards,
    DreamGains Financials