Vodafone Idea, YES Bank: 10 stocks showing a volume breakout on the charts

Volume plays a crucial role in identifying the interest of market participants in a stock. Higher the volume, more the interest in a particular counter. Volume also reflects stocks where maximum trading activity is happeing in a session. This information assists in identifying momentum stocks and then traders / investors can capitalise on the opportunity.

On the charts, when a breakout or breakdown is confirmed by strong volumes, the trend is considered as more reliable as compared to a movement in stock price where strong volumes are missing. One can also assess the possibility of follow-up buying based on the volume structure. A relevant scenario on volume may indirectly hint to a bigger opportunity and reduce the lag in terms of volatility.

Based on market-wide analysis, here are some stocks that are showing a volume breakout on the charts on Monday. Vodafone Idea Limited jumped over 7 per cent on volumes that are higher than last the five sessions. The actual volume is double than any of the recent sessions, suggesting a strong interest of market participants. The sudden rise in Vodafone Idea stock could be triggered by the company's plans to hike tariff and fund raising plans. The company, according to reports, will consider raising fund after the outcome of the adjusted gross revenue case in the Supreme Court. Vodafone Idea posted pre-tax loss of Rs 25,460 crore in the first quarter of this financial year due to lower revenue and provisioning. READ ABOUT IT HERE

Similarly, Yes Bank Limited was locked in a lower circuit with strong volumes on Monday. This indicates a bearish sentiment that can persist if the counter continues to show strong volumes amid price weakness. The bank has agreed to sell its stake in YES Asset Mana­gement Company (AMC) and YES Trustee to GPL Finance and Investments (GPLFI), which is owned by Prashant Khemka-backed White Oak Investment Management. READ MORE HERE

To 10 Stock trading with active volumes

10 stocks trading with active volumes (souce:BSEINDIA,COM, spidersoftware.com)