The market depth is a great indicator of how liquid the stock is. If the difference between the bid and ask is small (tight) then the stock is considered liquid…and if the difference is large, then it is not so liquid. If the stock is liquid, then you can place market orders easily. More on this here - https://zerodha.com/varsity/chapter/the-trading-terminal/
You can not Trust on DOM for any trade.
It’s gives an illusion for Intraday trade that stock will go up or down.
And If the stock is in Operators hand then better not to take any trade just by watching DOM.
Example:-1: if a stock is trading at 100 and you will only see the best 5 bids in DOM.
Now, what Operators do they put buy call at 90 in huge volume they know it will never come to 90.
But you will see total buy quantity more than sell quantity and retail trader will put a buy order and face loss.
Overall DOM is a weapon for big Operators and Big Investor’s.
I have seen this live many times in ICICI and Today in IDFC.