The benchmark indices have gained over 5 per cent since March 11. The rally has seen many stocks to enter a new trend with volumes showing significant addition. Beside technical indicators, the price action was co-related with volume and the pattern depicts the momentum and the interest of the investors.
Over the years, rising stock prices with an upswing in volume has been studied as a strong trend indicator, which shows the possibility of a further upward move in scrips. A correction in such stocks at support levels has seen the addition of buying and a sustained consolidation.
The candle close has a strong relevance with volumes. Two continuous close in green with rising volume validates the upward move in a counter and strongly determines the strength. Similarly, two negative candles in an upward trend shows weakening strength; and if crucial supports are broken, the stock may enter a negative zone.
Volumes, when correlated with candlestick patterns, have helped to identify major reversal and profit booking levels. Major patterns include Bullish Engulfing, Piercing Line, Morning Star and Hammer.
|Scrip Code||Scrip Name|
|BHARATFORG||BHARAT FORGE LTD|
|DABUR||DABUR INDIA LTD|
|DISHTV||DISH TV INDIA LTD.|
|HEROMOTOCO||HERO MOTOCORP LIMITED|
|HINDUNILVR||HINDUSTAN UNILEVER LTD.|
|IDEA||VODAFONE IDEA LIMITED|
|JISLJALEQS||JAIN IRRIGATION SYSTEMS|
|KAJARIACER||KAJARIA CERAMICS LTD|
|MARUTI||MARUTI SUZUKI INDIA LTD.|
|MCDOWELL-N||UNITED SPIRITS LIMITED|
|MOTHERSUMI||MOTHERSON SUMI SYSTEMS LT|
|NESTLEIND||NESTLE INDIA LIMITED|
|PTC||PTC INDIA LIMITED|
|SAIL||STEEL AUTHORITY OF INDIA|
|SRTRANSFIN||SHRIRAM TRANSPORT FIN CO.|
|SUNTV||SUN TV NETWORK LIMITED|
|UBL||UNITED BREWERIES LTD|
|ZEEL||ZEE ENTERTAINMENT ENT LTD|
|Source: Spider Software|