What is deliverable in stock market?

People who start trading or investing always face issues with the terms which are unfamiliar. One of them which is quite popular is deliverable. Whenever you watch any expert talking about this it might be confusing  for you. You might think that What is deliverable in stock market?

Introduction

There are some hints you get from data to predict the near future price movement of the stock. Many experienced investors use deliverable volumes to make the decisions about their next investment. However, They cannot only rely on deliverable volumes.

What is Deliverables in Stock Market?

On a daily basis, exchanges issue an overall traded volume and a deliverable volume data for every stock. Deliverable quantity represents that portion of overall traded volume in which an investor has taken the delivery into a demat account or sell from a demat account. The remaining quantity are intraday transactions, in which no delivery is made or received.

If the stock is moving up or down with a lot of deliverable volume, You can predict that long-term investors are coming in or out.

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Example of Deliverable Quantity to Traded Quantity

Individual w sells 85 Stocks

Individual x acquire those 85 Stocks and sells it to Individual Y

Individual y acquire those 85 Stocks and sells it to z.

Individual z after buying those Stocks is keeping it with him as delivery (to get in his demat)

Here Total Volume is 255 shares (85 shares delivered from A to D ideally, 170 shares done in Intraday)

Deliverable quantity is only 85 shares.

Data Analysis

Example: Data for HDFC  Bank- ALL from Apr 27, 2014 to Apr 27, 2021

Symbol Series Date Prev Close Open Price High Price Low Price
HDFC EQ 27-Apr-2021 1,404.80 1,407.25 1,442.00 1,404.80
Last Price Close Price VWAP Total Traded
Quantity
Turnover
Rs.
Deliverable
Qty
% Dly Qt to
Traded Qty
1,435.05 1,438.70 1,430.40 1,02,96,453 14,72,80,96,470.65 56,50,216 54.88
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In this case, 56,50,216 stocks are transferred from one group of individuals’ demat accounts to another group of individuals who have purchased such stocks in CNC for delivery.

In intraday trading, further 46,46,237 stocks are exchanged (Total vol – delivered volume)

Since the overall volume of stocks withdrawn from demat equals the overall number of stocks delivered to demat account, you can’t tell whether a higher delivery percentage is good or not just by looking at the deliverable volume.

To determine whether a day’s chart price movement is bullish or bearish, you must look at the chart for that day.

Chart Reading

With a bullish graph (price movement) and a large deliverable quantity, several investors, both FII and wealthy institutions, are pumping funds into these stocks.

With a bearish graph (price movement down) and a strong deliverable qty, many shareholders are selling their positions and exiting the scrip (It’s possible that something negative is going to happen)

Bullish or bearish graphs with a small deliverable quantity suggest that there is little to be concerned about, as investors are not acting aggressively.

This deliverable quantity percent for HDFC bank is 54.88 percent; you can compare this to previous values to see if this is a typical or unusually high percentage on that day.

Where I can find out deliverable volume in stock market data?

Click Here to get the report

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Conclusion

Always remember deliver trend is much more helpful for long term investors instead of day traders. So keep this thing in mind while reading the data.

We hope we are able to clear your doubts about What is deliverable in stock market? let us know your thoughts about deliverables in stock market in the comment section.

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FAQ About What is Deliverable Quantity?

Where in i can find deliverable volume data?

Check the Website of NSE or click on the links given in this blog.

Do Deliverable volumes are good indicator of trend of any stock?

Yes, If you able to do analysis closely than you can find the trend.

Do Money control provides data of Deliverable volume ?

Yes, You can find the data on many websites including money control.

Importance of deliverables in stock market?

The major Importance is they are really helpful in finding the trend for long term investors.

Do BSE also provide data for Deliverable quantity of stocks?

Yes, they provide data. However, everyone recommend NSE as volumes are much higher on NSE.

Profit Must is being built by a passionate team with in-depth understanding of the IPO sector and stock market. The team does their own research and publishes articles on Profitmust.com based on their findings.

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