Especially on the equity stocks that have crashed.The very latest example is “JSW Steels” whose prices crashed from 1620.60 on 30th December 2016 to 162.95 on January 4th 2017. When I check the stock on Zerodha’s Kite platform the price shown on 30th December is 163.25 (High) and 166.75(High) on January 4th 2017.“JSW Steels” on 30th December 2016 Actual price = 1620.60 (Close)Price on Zerodha Kite = 163.25 (High). Isn’t that a “misrepresentation of data”? Zerodha Kite platform wont show proper historical data on stocks whose prices are crashed.
Nothing wrong on Kite charts. Also the price of the stock hasn't crashed, the reason it seems to have come down is because JSW steel had a 1:10 stock split, ex date on 4th Jan. So If you held 1 stock at 1600 as of 3rd Jan, you would have 10 stocks of 160 as on 4th Jan. That doesn't mean stock price has crashed. These actions are called corporate actions, read more here on Varsity. When any corporate action like split/bonus etc happens, we have to adjust charts historically, because if we don't, all the technical indicators on the chart will go wrong.
So on the ex date, we apply the adjustment factor (in this case 0.1, to historical data) to ensure charts and indicators don't go wrong.
I am guessing you are looking at Google finance chart which currently doesn't have the capability to apply corporate actions. If you check out yahoo finance, it shows chart with corporate actions. Maybe we should write to Google asking them to start applying corporate actions.
Google chart on JSW (which makes no sense without corporate actions)
Same chart on Yahoo Finance, which shows the true picture of the stock