It tells how many investors are willing to accept the shares in their demat account.
A higher delivery quantity means serious trading and balance is intraday play.
Most of the analysts give importance to volume or traded quantity.
On the other hand, investor give more importance to Deliverable Quantity/Delivery Percentage.
For example, total traded quantity of a Stock A is 100. Assuming out of 100, deliverable quantity is 60. It means balance 40 shares were traded intraday and only 60 shares are marked for delivery. The delivery percentage of 60% is very crucial.
Intraday is a speculative trade, therefore, you must have observed that stocks with high volume and low deliverable quantity are favorites of day traders.
Increase in Delivery Percentage and Increase in Stock Price:-
It shows BULLISH Trend in the Security Wise Delivery Position analysis. it means investors are accepting delivery of stock. buying for a long term. In this scenario, there is a possibility of further increase in stock price. Now it doesn’t mean that after increase when the delivery percentage cool off then you sell the stock. After the buying, the delivery percentage will cool off near long-term moving average.
Decrease in Delivery Percentage and Decrease in Stock Price:-
In Security Wise Delivery Position analysis, if you observe a decrease in delivery percentage then it implies stock is now in a grip of traders and speculators.
It also implies very high intraday activity.
Normally investors fail to identify this trend as the stock price is increasing. Though the stock price is increasing but be assured that this trend is normally short-lived.