Delivery percentage or delivery volumes is a very important indicator when you want to understand whether the stock is bought for long term or just for speculative trading. It helps you understand the nature of trades happening and also helps you predict the price movement based on delivery data. Lets try to understand what is Volume in stock , what is delivery percentage or delivery volumes, where can you see it and how to use it.
What is Traded Volume in Stock
Volume Traded: Volume traded for a script means total no of shares traded for the script in a particular trading day. Stocks with high volumes means the stock is liquid and traders showed more interest in buying and selling of that share.
Traders usually check stocks with higher volumes but that cannot be a single parameter to decide on investing into a stock. However high volumes with price change often give indication of a trading trend. For example , if a stock volume is higher than 5 day average volume of that stock , it means traders are showing more interest in the stock and price movement may come in next few days.
All the major price movement in stocks are accompanied by high traded volumes. Stock price movements which happen on back of high volumes give very good trading opportunities
Volume comprises of two major categories – number of stocks which are just bought on margin money (without actually taking delivery) and number of stocks which actually investors have bought to keep for long term. We can refer these volumes as trading volumes and delivery volume respectively . If only trading volume is high and stock moves up , it means traders are there for short term gains and not actually buying stock for holding .They would have bought in morning and squared off in evening (intraday trading) causing increase in volume .
Delivery Percentage and delivery Volume:
Delivery percentage in a script means % of shares which were not squared off the same day out of total shares traded. That means % of shares people actually took it into their demat account. Delivery based shares are not meant of intraday. It is generally for long term holding or positional trade.
A sudden increase in higher delivery percentage hints that people have showed interest to accumulate the shares for delivery and it’s not short lived.
Let’s understand with an example:
Suppose total volume of shares traded in a script ABC is 10000. Out of which 2000 were bought by traders in morning and 2000 were then sold later in the day (total volume 4000) . Then the shares taken in delivery is 6000 and delivery percentage is 60%.
The delivery percentage and volume information are available in NSE/ BSE sites.
Where can we see delivery percentage and traded volume of stock
You can use Intradayscreener to open any stock and see its delivery volume.In the below image you can see Total traded volume , delivery volume as percentage and also you can check delivery data over last few days
How to use delivery percentage in Trading and Investing
Spike in delivery percentage and delivery volumes should be analyzed with stock price change to predict the short-term trend. Take a look into different scenarios below:
- Increase in Delivery percent with increase in stock price: This indicates that buyers are expecting the stock price to go up and the sentiment is bullish about buying the stock. Stocks are being purchased with intention to keep it in demat account for long term, therefore giving indication of more buying to come in future.
- Increase in Delivery percent with decrease in stock price: It shows a BEARISH trend in stock price. That means the investors are offloading their positions in the stock and the downtrend will continue. Selling happening in stocks with high delivery volumes indicate that long term investors are exiting their positions and it hits that something may not be right with company , or company may be overvalued
But as suggested the above two parameters should not be the only criteria to decide on whether to buy or sell a stock. Always one should rely on fundamental analysis for long term investment.
What is Security wise delivery positions
Security wise delivery positions is nothing but a file which NSE uploads every day after end of day market data explaining about total traded volume , delivery percentage etc. of each stocks traded in NSE. We can analyze this data using stock screener like IntradayScreener
Delivery percentage Screener
You can use IntradayScreener.com delivery scanner to find delivery scans.
You can find stocks with increase in delivery percentage and increase in volumes. You can also see high volume stocks with how many times delivery has increased there . This delivery scanner will help you to understand and analyze security wise delivery positions effectively.
Hope you guys will be benefited with this precise explanation of delivery and volume.