Currently intraday charts are not adjusted on Dhan for corporate events like Bonus, splits etc. This creates two problems:
All backtesting goes for a toss. When one tries to correlate data for backtesting on Daily and above timeframes with intraday timeframes it is next to impossible as even the cursor doesn’t sync in price.
Trading in those days becomes next to impossible. For e.g., refer the chart of Hindustan Aeronautics below:
The bottom right corner is HAL’s hourly chart. Now, it shows data from 5th of Sept i.e., one month. Now the implication of this is that till the time another month completes and this random data (due to corporate event) goes to the side of the screen, I won’t be able to use it (by the way, even then indicators do not properly align due to wrong past data). This same thing goes for lower timeframes like 15 min, 5 min etc.
I’m sure Dhan’s team would have taken a call regarding this at the time of starting but I feel this needs to be revisited. Anyway, this behaviour is not normal among brokers.
It’s high time that you start adujsting corporate events on intraday charts too. See raymond corporate event occured on 26th July but since the chart is not adjusted, it is showing distorted picture on intraday timeframes (hourly in this case).
Making decision on the basis of such unadjusted charts is not possible.
@iamshrimohan Hi. Last discussed you said that Dhan has started to do CA adjustments on charts. Even I noticed with few other stocks that CA has not been applied to intraday charts. Can you please look into it?
@Shally This is the case of demerger where-in a part of Raymond Group (RLL) is being demerged. Here the COA is maximum (99.47%) towards Raymond and 0.53 towards RLL. Even with the share swap ratio adjustment of 4 for every 5, the candle would still be down due to the fact that Raymond has also announced demerger of its Real Estate Business.
@thisisbanerjee We are auto-adjusting charts for Split and Bonus (which are quite straight forward) but there are no adjustments to be done on the Merger Demerger cases as of now. As we are doing these changes on prospective basis, there could be retrospective cases where adjustment might not be taken into effect. You can highlight those cases and we could do that adjustment right away.
Once the COA for Raymond Reality also comes into picture, then we would be able to gauge the adjustment factor.
