Jindal Stainless Moving Out of the Accumulation Phase

Accumulation Phase is a phase where smart and informed investors put money into the stock with low quantity for long term investment. These smart investors may the FII's or DII's or he may be a fundamentalist who always searches for the stock with good fundamentals and trading at a low price. Always try to find the type of stock that is being accumulated for a long period. The accumulation phase may take 1 or 2 years. The long the accumulation period the more likely there would be a good markup phase. OBV can also be used to know whether it is the accumulation phase or not. If OBV is moving up in the consolidation phase then it indicates that the stock is being accumulated at the bottom. Sometime there may be a false breakout of the accumulation phase. To understand the organic move out from the accumulation phase just calculate the ratio of last 30 days green and red days if the ratio is more than 1 then it is an organic breakout. At this phase, you can also go with the fundamental of the company and read the reports of the broking house and the research analyst. It will give a better insight of the company's future growth.