CAT 2024 Slot 1 · DILR · Question 3

CAT 2024 Slot 1 previous year question on Mixed DI (Radar, Triangular, Stock etc), with the answer and a step-by-step solution.

Mixed DI (Radar, Triangular, Stock etc)DATA INTERPRETATION -High LevelMultiple choiceMedium

Set 1: Candlestick Plot of Seven Shares — this question belongs to a set. Read the full set with all 4 questions →

The chart below shows the price data for seven shares - A, B, C, D, E, F, and G as a candlestick plot for a particular day. The vertical axis shows the price of the share in rupees. A share whose closing price (price at the end of the day) is more than its opening price (price at the start of the day) is called a bullish share; otherwise, it is called a bearish share. All bullish and bearish shares are shown in green and red colour respectively.

Daily loss for a share is defined as (Opening price - Closing price) / (Opening price). Which among the shares A, B, F and G had the highest daily loss on that day?

  1. A

    A

  2. B

    B

  3. C

    F

  4. D

    G

Pick an option, then check.
Answer & solution

Answer: Option A

Solving the set

How to read a candle: the thick body shows the opening and closing prices, and the thin lines (wicks) above and below show the day's high and low.

• Red (bearish) candle: top of the body = opening price, bottom of the body = closing price (the price fell).

• Green (bullish) candle: bottom of the body = opening price, top of the body = closing price (the price rose).

Step 1 – Read all seven candles against the price axis (gridlines every Rs 200).

Share

Colour

Opening (Rs)

Closing (Rs)

High (Rs)

Low (Rs)

A

Red (bearish)

2200

1800

2400

1200

B

Red (bearish)

2000

1700

2000

1400

C

Green (bullish)

800

1200

1400

800

D

Green (bullish)

500

1000

1200

300

E

Red (bearish)

1300

1100

1400

1100

F

Red (bearish)

1800

1600

2000

1200

G

Green (bullish)

1200

1700

1900

1000

Step 2 – Classify the shares. Bullish (green): C, D and G. Bearish (red): A, B, E and F.

Step 3 – Compute SPV = (High − Low) / ((Open + Close)/2) for every share.

Share

High − Low

Average of Open & Close

SPV

SPV > 0.5?

A

2400 − 1200 = 1200

(2200 + 1800)/2 = 2000

0.60

Yes

B

2000 − 1400 = 600

(2000 + 1700)/2 = 1850

0.32

No

C

1400 − 800 = 600

(800 + 1200)/2 = 1000

0.60

Yes

D

1200 − 300 = 900

(500 + 1000)/2 = 750

1.20

Yes

E

1400 − 1100 = 300

(1300 + 1100)/2 = 1200

0.25

No

F

2000 − 1200 = 800

(1800 + 1600)/2 = 1700

0.47

No

G

1900 − 1000 = 900

(1200 + 1700)/2 = 1450

0.62

Yes

Step 4 – Compute the daily loss = (Open − Close)/Open for the bearish shares named in the questions. A bullish share closes higher than it opens, so its 'loss' is negative (it gained).

Share

Opening − Closing

Daily loss

A

2200 − 1800 = 400

400/2200 ≈ 18.2%

B

2000 − 1700 = 300

300/2000 = 15%

F

1800 − 1600 = 200

200/1800 ≈ 11.1%

G

1200 − 1700 = −500 (a gain)

Negative (no loss)

This question

From Step 4: A ≈ 18.2%, B = 15%, F ≈ 11.1%, and G has no loss (it is bullish).

A had the highest daily loss.

Shortcut: G can be ignored straight away because it is green. Of the rest, A's fall of 400 on 2200 is clearly more than 15%.

Hence, the answer is option 1.

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