Dear mohan,
Please go through NSE site for how this index calculation will be done....it will help to understand the spot....though its not needed for our trades
I too half knowledged.but NSE itself giving volumes in spot data ...so its there
Please go through NSE site for how this index calculation will be done....it will help to understand the spot....though its not needed for our trades
I too half knowledged.but NSE itself giving volumes in spot data ...so its there
1)Index calculation has got nothing to do with our topic.
Index numbers change based on underlying price changes ( proportionate to each stock weight in index ). Its price driven. Volume is no where in picture.
2) yes, Nse is giving shares traded for Nifty spot.
Does it mean Nifty spot is trading ? .... No.
NSE is giving consolidated volumes of shares traded in Nifty stocks.
Nse is not wrong in giving that data. Purpose of that data is to give a snapshot on volumes and turnover of all the index constituents at a glance.
Now we must use our intellect to understand where to use that data and where not to use.
OBV as a indicator is used to understand strength of the trend based on volumes traded. Here volumes traded means...actual volume. Since spot is not traded, obv should not be used on spot data.