Investors often seek stocks that exhibit strong fundamentals complemented by favourable technical indicators. One such technical strategy involves identifying stocks that have gained at least 10% in a quarter, accompanied by trading volumes at least 100% higher than those in the previous quarter.
Importance of rising price with increased volumes
A price increase accompanied by higher trading volumes is a strong indicator of genuine investor interest and market consensus on the stock’s value. High volumes during price rises suggests that movement is backed by substantial participation, reducing the likelihood of price manipulation and indicating a sustainable trend. For investors, such scenarios often present opportunities to enter positions with greater confidence in the continuation of the upward trajectory.
A rising price accompanied by increased volume suggests investor interest and the potential for the upward trend to be sustained. Here are three stocks that meet these criteria as of March 27, 2025.
Narayana Hrudayalaya Limited, headquartered in Bengaluru, India, is a prominent healthcare service provider operating a network of multispecialty and super-specialty hospitals nationwide. The company offers a wide range of medical services, including cardiology, oncology, neurology, and orthopaedics.
In the current quarter, Narayana Hrudayalaya‘s stock price has increased by 31%, with trading volumes up 641% compared to the previous quarter. The quarterly chart indicates a breakout from a symmetrical triangle pattern, signalling a bullish trend. Investors might consider any price dips as potential entry points.
GSK plc, formerly known as GlaxoSmithKline plc, is a British multinational pharmaceutical and biotechnology company headquartered in London. Established in 2000 through the merger of Glaxo Wellcome and SmithKline Beecham, GSK focuses on developing, manufacturing, and commercialising general and speciality medicines, as well as vaccines.
This quarter, GlaxoSmithKline’s stock price has risen by 23%, with a 294% increase in trading volumes over the previous quarter. The quarterly chart shows that the stock has retested its 2024 breakout and is trending upwards, presenting a potential opportunity for investors.
Aavas Financiers Limited is an Indian housing finance company primarily engaged in providing housing loans to low and middle-income customers in semi-urban and rural areas. The company focuses on serving creditworthy individuals who may lack traditional income-proof documents, utilising a unique appraisal methodology to assess these customers individually.
In the current quarter, Aavas Financiers’ stock price has appreciated by 24%, with trading volumes up by 148% compared to the previous quarter. The quarterly chart reveals a “Rising Three Methods” bullish candlestick pattern. This pattern typically indicates a continuation of the prevailing uptrend, suggesting a potential opportunity for investors.
In conclusion, Narayana Hrudayalaya, GlaxoSmithKline, and Aavas Financiers have demonstrated significant price gains this quarter, supported by substantial increases in trading volumes. These technical indicators, along with their respective fundamental strengths, make them noteworthy considerations for investors seeking potential opportunities in 2025.
Disclaimer
Note: We have relied on data from throughout this article. Only in cases where the data was unavailable have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Brijesh Bhatia has over 18 years of experience in India’s financial markets as a trader and technical analyst. He has worked with UTI, Asit C Mehta, and Edelweiss Securities. Presently, he is an analyst at Definedge.
Disclosure: The writer and his dependents do not hold the Stocks discussed in this article. However, clients of Definedge may or may not own these securities.
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