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Volume Shockers NSE and BSE, Stock Market Index Analysis

A counter view to the price shockers is the volume shockers. Volume shockers NSE and BSE are those stocks that see a sudden spurt in volumes. The idea is to identify stocks that are seeing a sudden spike in volumes. As a method of stock market index analysis, the volume shockers are good start points to identify interesting stocks. We can either look at volumes in terms of number of shares or in terms of value. It is always more advisable to look at volume in terms of number of shares because it automatically adjusts the price effect. That is a more realistic view of the increase in volumes of the stock.

Volume shockers at LKP Securities website…

LKP Securities has dedicated the complete page to volume shockers. You can filter volume shockers on the NSE or on the BSE. Obviously, the BSE volume shockers will be much bigger as there are more stocks in the mid-cap and small cap space. It is essential to keep a basic cut-off for volumes before you start looking at these volume shockers seriously. Volumes growing substantially on a very small base are nothing to write home about. It is only when volumes grow on a larger base that one can interpret that as a trend. LKP Securities does not just look at point-to-point shift in volumes but compares the daily volumes of a stock vis-à-vis its average volumes of the past. This ensures that the sudden shifts in volume are evened out and a more realistic base is used. The page actually lists the toppers in terms of volume shockers based on the average volumes of the past.

Why volume shockers are important…

Intuitively we are all aware that when a company is likely to outperform you see an advance signal in the form of rise in volumes. That is the purpose of this page. When you index on the top volume shockers, you get a universe of 5-7 stocks that you can focus on and delve deeper. Normally, volume shockers could mean a variety of things. Firstly, it could mean that some large investor or institution is gradually accumulating the stock. Secondly, it could also mean that the company is either likely to get a big order or report a sharp increase in profits. Hence the early birds are trying to get into the stock first. Thirdly, it is also possible that the particular sector is undergoing a re-rating on an overall basis and that is leading to a rise in volumes in all stocks in a particular sector. In fact, if you break up the volume shockers by industry you can get some interesting sectoral trends.
The next step is that you need to drill deeper. If the increase in volumes is purely in the form of speculative volumes then it is not very significant. But if you find the volume shockers showing a rise in delivery volumes and also interest from informed investors, then it could be something for you to serious look into. That is where volume shockers can be of help!

Volume Shockers

Exchange
Company Last Price (Rs.) Change (%) Last Volume (000's) Avg Volume (000's) Change (%)

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