On August 20, 2025, six stocks within the Nifty500 index demonstrated a bullish trend by closing more than 1.5% above their Volume Weighted Average Price (VWAP). Among these stocks were Waaree Energies and Inox India. A move above the VWAP is often seen as a signal of positive market sentiment.
Understanding VWAP
The Volume Weighted Average Price (VWAP) is a technical analysis indicator used on intraday charts that resets at the start of each new trading session. It represents the average price a security has traded at throughout the day, considering both volume and price. The VWAP is a valuable tool for traders, offering insights into a security's price trend and value.
The VWAP is calculated by multiplying the price of a stock by the number of shares traded at that price, then dividing by the total number of shares traded. If the price remains constant, the VWAP would equal the stock price. However, as the price fluctuates during a trading period, the VWAP will vary above or below the actual stock price.
Interpreting VWAP
Traders use VWAP in various ways. Some consider stocks with prices below the VWAP as undervalued, while those above it may be seen as overvalued. A price movement below the VWAP that then rises above it might signal traders to take a long position on the stock. Conversely, if prices above the VWAP fall below it, traders might sell their positions or initiate short positions.
Institutional investors also utilize VWAP to minimize market impact when entering or exiting stock positions. Ideally, they aim to buy below the VWAP or sell above it. For example, a hedge fund might avoid placing a buy order above the security's VWAP to prevent artificially inflating the price.
Waaree Energies
Waaree Energies, founded in 1990, is India's largest manufacturer of solar PV modules with a capacity of 13.3 GW. The company commenced operations in 2007, focusing on providing cost-effective and sustainable energy solutions. Waaree has five solar module manufacturing facilities in India and also has an international presence. Waaree's PV modules are manufactured using multicrystalline, monocrystalline, and N-Type technology.
Waaree Energies' plan to acquire Enel Green Power India for ₹3,500 crore faces hurdles due to disputes, raising doubts about the deal's completion. The proposed acquisition included ₹792 crore in cash and the absorption of Enel's debt by Waaree. The move aimed to strengthen Waaree's renewable energy portfolio, particularly in wind power. Despite the uncertainty surrounding the Enel deal, Waaree Energies maintains a strong business outlook. The company recently posted strong June quarter results and reaffirmed its FY26 EBITDA guidance of ₹5,500–6,000 crore.
Inox India
Inox India Limited, established in 1976, specializes in cryogenic equipment and solutions. The company offers design, engineering, manufacturing, and installation services for cryogenic conditions. Inox India supplies cryogenic tanks and systems for storing, transporting, and distributing industrial gases, including green hydrogen and oxygen.
Inox India is nearly debt-free and has demonstrated good profit growth, with a 22.9% CAGR over the last five years. The company has also maintained a healthy dividend payout of 42.1%. On August 20, 2025, Inox India's share price was ₹1130.75, up 2.92%. The company's revenue increased by 34% to Rs 369.4 crore, and net profit rose by 49% to Rs 65.5 crore. Demand for Inox India's products is expected to remain robust in high-potential sectors like hydrogen, helium, semiconductors, and ammonia.
