If the delivery % of a stock is high but the price decreases, what does it indicate ?
Also what is the difference between delivery based buying and delivery based selling?
This, I think is a very outdated concept in the digital world.
The logic was " Increase in delivery vol means someone started accumulating the shares and a near term uptrend is expected due to float getting lower"
The delivery concept could have been useful 30 years ago, when there were relatively less liquidity in the market compared to now.
So institutions had to accumulate shares in small qty over a number of days.
Nowadays there are computers that can give you virtual liquidity for any quantity you need, you place the order and the liquidity comes automatically.
The concept could be very less relevant nowadays, taking into account the above scenario,
Yes, it’s correct. But I think when institutional investors buy shares, they buy in millions which leads to very high delivery percentage compared to when retail investors buy shares. When smart money buys it means something has definitely changed fundamentally within the company. The shares may not start uptrend movement immediately, but gradually it does.