::I am taking data from ADC and as usual samples can vary a lot between.::

Which can mean insufficient sampling rate or too much of noise or both ! If I were you, this is the first area to attack. And if you try to average out undersampled data then the data integrity is lost. On the other hand if you are trying to mask out noise by averaging then you may loose out the important "peaks".

And if at all you try averaging you should attempt a moving average. I think the posting by Hans has this.

Raghu