NIFTY50 volume chart

#1

Is it possible to provide volume data in NIFTY50 chart?

E.g. https://in.investing.com/indices/s-p-cnx-nifty-chart

#2

When I was doing paper trading via Investing, TradingView did provide Volume data on Nifty and Bank Nifty dunno why they aren’t at Zerodha.

#3

Nifty spot won’t have volume as it can’t be traded so giving any volume there is not correct.

#4

Okay.

If correctness is important, then may be add another study called “aggregate volume” (or something like that) which works with indices and shows volume data aggregated over its constituent stocks?

Having that data visible in the chart will avoid the need to look at other websites.

Tx.

#5

Just wondering, I am not aware so please don’t mind asking, what can be known with that volume ?

#6

How active a day it is relative to other days.
Price movements are not indicative of how many stocks were traded.

#7

But if we add all constituent volumes and put it there, each stock has different weight-age and a stock with less absolute value will contribute more to numbers and for any stock specific reason that day one stock can distort numbers, corporate actions on any stock can distort numbers again ,how one can read it, what additional value it will give, I personally think it would add more noise and create confusion.

#8

You’re right about weightage. Cheaper stocks will contribute more to volume for the same traded value. So volume information would be distorted based on which stock was traded the most.

My problem is that I’m not able to judge the importance or relevance of an index movement. How do I figure whether a 50 point change in the index is the result of a lot of transactions and hence is a widely accepted opinion or simply a movement that’s going to be erased in a short while?

Higher volume of a contract indicates high relevance. But NIFTY being an index, I don’t see a volume equivalent. Thoughts?

Shouldn’t create confusion if it’s added under a new name. Shouldn’t add noise since it’s not enabled by default.

#9

Adding this won’t solve your query, if a stock in nifty 50 go for corporate action then following volume will go for a toss and the frequency of this happening is not though very high but still decent enough to give distorted picture.