Previous Close
The official closing price of the prior trading session, used as the reference point for the current day's change and circuit limits.
Formula
Day's Change % = (Current Price - Previous Close) / Previous Close x 100
Unit
₹
In depth
Every percentage change quoted during the day, and every price band, is measured from the previous close, which makes it a reference number rather than a tradable one. After a corporate action the previous close is adjusted — a 1:1 bonus halves it — so that the next day's change does not show a fictitious 50% crash. Data providers that fail to apply these adjustments produce charts full of phantom collapses on ex-dates. When comparing your entry price to 'today's change', remember the change is measured from the close, not from what you paid.
Worked example
Previous close ₹250, current price ₹262.50. Change = (262.50 - 250) / 250 x 100 = 5%. After a 1:1 bonus the previous close would be adjusted to ₹125, so a ₹126 open shows +0.8%, not a 50% fall.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Previous Close” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.