Originally Posted by man4urheart
Volume is clear. What signal turnover generates in trading?
Basically volume is more important or turnover?
As far as Nifty is concerned, I give more weight to turnover than volume.
Volume isn't a good indicator for Nifty because the same volume in different stocks has different implications for the respective stocks as well as the index.
If a large buyer buys 1 crore shares of J.P. Associates, the stock will rise by 10%-15%, but the Nifty will hardly move.
If the same quantity of Infosys is purchased, Nifty will rise sharply and the stock will just explode.