When stock deliverable quantity is increasing and price decreasing, What does it mean?

Technical Analysis
1

I had observed a stock and its deliverable quantity is increasing from last around 3 to 4 consecutive day,
But its price is decreasing what kind of indication is this ?

2

An increase in volumes with price decline indicates bearish trend forward.

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3

Thanks for the reply.

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4

There’s a difference between deliverable quantity & volumes traded. Please check this link for more info on volumes:
http://zerodha.com/varsity/chapter/volumes/

The answer to your question is in the responses section i am pasting the same below:

Karthik Rangappa
November 20, 2014 at 9:42 am

Deliverable qty signifies the amount of shares that were traded today with an intention of taking overnight deliver. Where as the traded qty signifies the amount of shares day traded. Higher the % of deliverable quantity, the more bullish the stock is perceived.

Karthik Rangappa
November 21, 2014 at 9:39 am

The higher the deliverable quantity, the better it is. I would guess a sustained (for at least 5 trading session) deliverable qty of over 60% should be considered good. If it is a red candle and the deliverable qty is increasing it only means investors are buying the decline.

2 Likes
5

Thanks for the detailed clarification.

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