As an investor, it’s always a smart move to invest in high volume stocks as they offer a higher liquidity and better price discovery. In the Indian stock market, the National Stock Exchange (NSE) is a popular platform for trading and investment.
How to Find High Volume Stocks in NSE
However, with over 1,600 listed companies, finding high volume stocks in NSE can be overwhelming. In this article, we’ll share some tips on how to find high volume stocks in NSE.
- Check the Volume:
The easiest way to find high volume stocks in NSE is to check the trading volume. The volume refers to the number of shares traded during a specific period. You can find this information on the NSE website or any other financial portal. Look for stocks with high average daily volume as they offer better liquidity.
- Analyze the Price:
The price of a stock can also indicate its popularity among investors. Generally, high-priced stocks are more likely to have high trading volumes. However, this may not always be the case. You need to compare the price and volume of different stocks to identify the ones with high demand.
- Look for Sector Leaders:
Certain sectors in the stock market have higher trading volumes than others. For instance, banking, technology, and pharmaceutical companies are some of the most active sectors in NSE. Look for stocks of companies that are leading the pack in their respective sectors. These companies are likely to have high trading volumes.
- Check the News:
News and market events can have a significant impact on the trading volume of a stock. Keep an eye on the latest news related to the companies you are interested in. If a company announces a positive development, it can lead to increased trading volume. Similarly, negative news can result in a decline in trading volume.
- Use Technical Analysis:
Technical analysis is a popular tool among traders and investors to identify high volume stocks. It involves analyzing charts and using indicators to predict future price movements. Look for stocks with a high trading volume that are trading at a support level or are showing bullish signals.
In conclusion, finding high volume stocks in NSE requires a bit of research and analysis. You can use a combination of the above methods to identify stocks that have high demand among investors. Remember that trading volume is just one of the factors to consider while making investment decisions. Always do your due diligence and consult a financial advisor before investing.