According to technical scan data, the closing prices of four Nifty200 stocks fell more than 2.5% in relation to the VWAP (Volume Weighted Average Price) on October 7. A move below the VWAP indicates a possible bearish trend. When the closing price is below the VWAP, it means that it closed at a lower price than the average price of the day’s trading, which is determined by trading volume. This can be considered as a potential indication of increased selling pressure.
Details of 4 Stock
| Stock | VWAP | LTP |
| Anant Raj | Rs 698.46 | Rs 664.55 |
| BSE | Rs 3991.78 | Rs 3826.45 |
| Garden Reach Shipbuilders & Engineers | Rs 1580.67 | Rs 1538.15 |
| BASF India | Rs 8448.01 | Rs 8235.9 |
What is VWAP?
Many traders use the Volume Weighted Average Price (VWAP) as a benchmark when analyzing stock prices. The average price at which a stock traded today is shown in VWAP. To find the average, you need to know the price and trade volume. The reasoning goes that not every trade has the same effect on a stock’s price. The price will be influenced more by larger trade sizes (volumes) than by smaller ones. So VWAP lends more weight to periods when high volumes were exchanged. This aids in determining significant pricing points.
What is VWAP Indicator?
A technical analysis tool used by traders to ascertain the average price of a stock over a specified time period is the volume weighted average price, or VWAP. VWAP uses the volume traded at each price point to weight the average price. Therefore, compared to prices at which little volume is exchanged, prices at which more volume is traded have a bigger impact on the aggregate average. It appears on the trade chart as a black line. View the image below.
