Higher Volumes Provoke Jindal Steel & Power

By Author: Money Classic Research
Total Articles: 35
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Jindal Steel and Power is putting all efforts to turn around. It is showing visible green shoots in its financial aided as it has improved the scenario of the steel industry

The company has capable reduced its net loss to Rs 421 crore in this quarter of 2017-18, which was Rs 1240 crore loss in the corresponding quarter of last year. The most prominent factor is that in June 2017 quarter, the company’s operations have turned profitable at the cash levels with the cash profit of Rs 453 crore reported.

JSPL produces over 5 million tonnes of steel annually saw its realization per tonne improving.

Improving volumes

The company also gained on account of increase in sales volume along with the higher realizations. The company had sold 1.15 million tonnes of steel during the quarter, as against 1.1 million tonnes of steel in the corresponding quarter last year, on the consolidated basis. 26.4 percent year on year increase is due to both higher prices and volumes. The company had consolidated sales of Rs 5936 crore in this quarter.

How to calculate volume from volume based indicators?

The volume ...
... is very powerful tool, but many traders and technical analysts do not use it, as this is a simple indicator. Still, many traders believe the strength of using the volume indicator and use it to get maximum profit.

On Balance, Volume is the simple form of indicator but is an effective one. Beginning from the arbitrary number, if the market ends up higher than the volume is added and if the market ends up at low then the volume is subtracted. In this way, one can predict which stocks are being built up and informs about the running total of the stocks. It also indicates the divergence, when the price of the stocks rises and the volume is increasing at slower rate or volume might have started falling.

In stock market trading, volume based indicators are extremely useful. Volume is a not an exact opening and exit instrument, though, with the aid of certain technical indicators, opening and getting out signals are produced by starting at price action and volume based indicator.

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