On January 14, the closing prices of five stocks in the Nifty500 pack rallied more than 1.5% above their VWAP (volume-weighted average price). A move above the VWAP is often seen as a potential bullish signal, according to StockEdge.com’s technical scan data
When a stock closes above its VWAP, it indicates that the closing price is higher than the average price at which it traded during the session, weighted by volume. Traders and investors typically interpret this as a sign of positive market sentiment