Why Volume Matters
Volume measures how many shares change hands. High volume confirms conviction behind a move. Low volume suggests weak moves that may reverse. On NEPSE, average daily volume varies significantly by stock and sector.
Key Volume Indicators for NEPSE
1. Volume Ratio
Compares current volume to 20-day average. Values above 2 indicate unusual activity. Top volume spikes today: C30MF (12.7x), NBLD85 (9.7x), NICBF (7.1x), SLCF (5.7x), TAMOR (5.5x), CIZBD90 (5.0x), FMDBL (4.4x), KDBY (4.3x), GILB (4.3x), SAGF (4.1x).
2. On-Balance Volume (OBV)
OBV adds volume on up days and subtracts on down days. Rising OBV = accumulation, falling OBV = distribution. Stocks with rising OBV: NBLD85, NICBF, GILB, FMDBL, PBLD84, NBLD87 - indicating institutional buying.
3. Volume-Price Relationship
Bullish: Price up + Volume up = Strong advance. Bearish: Price up + Volume down = Weak advance (potential reversal). Current accumulation signals in 12 of top 20 stocks confirm broad buying interest.
Volume-Based Trading Rules
Buy when: Stock breaks above resistance with volume ratio above 1.5x. Avoid when: Stock rises on declining volume. Sell when: Stock drops on 2x+ volume. Best opportunities: Stocks showing accumulation volume signal + rising OBV + composite score above 70.