What does Stock Delivery Percentage ?
What does Stock Delivery Percentage ?
The Stock Market acts as a factor to reveal the gap between the Day Traders and Long Term Investors, in the name of Share Distribution. It can be referred as Stock or Share Delivery Percentage. Every trading must be completed in the same day for the Day Traders (Intra day), otherwise it would be square off. Likewise for the Short term (Swing) traders and Long Term investors, the shares cannot be sell in the same day and it would be add into their Demat account.
Both Short term and Long term investors are not going to sell their shares on the day they are bought. So, it is called as Delivery of Shares in the Stock Exchange. They simply took that Shares to their account.
The Price of a particular share traded in the market is subject to volatility, where the price reacts with low and high on the same day. At the end of the day, it will close in a certain price, called as Closing Price for the Stock.
These details will be published by the Stock Exchange every trading day. Like Stock Name (Scrip), Previous Close, Open Price, High Price, Low Price, Close Price, Total Trading Quantity, Turnover, Deliverable Quantity, No. of trades and Delivery Percentage.
The most supportive of those who invest in the stocks for short term or long term, the Stock Delivery Percentage which will help to analyze the stock's behavior. The Stock Delivery Percentage describes that the shares bought on the day is taken for Delivery, so it cannot be used for Intra day or Square off. So, it may be sell in the next day or in Future.
Deliverable Quantity vs Percentage of Delivery Quantity to Traded Quantity
An Investor should look at the percentage of delivery of Shares in a Particular stock. Before that he should find a stock based on Valuation (Fundamental Analysis). You need to see the Percentage of Delivery, but not the Deliverable Quantity.
Make sure that the Stock Delivery Percentage (Security wise) is usually over 50 Percent. While the Percentage of Delivery of shares are high or more than 50 Percent, it shows that the shares are interested by the Investors to buy and hold it.
Many of the investors feeling that the share price will rise later, so the delivery percentage is high. Let me repeat, look at the Percentage of Stock Delivery - Don't be fooled by the Deliverable Quantity or Total Traded Quantity.
Percentage of Delivery Quantity to Traded Quantity is the percentage of total number of shares Traded in a single day. The Stock Delivery Percentage varies every trading day. It will be published daily by the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) in their official websites.
For example, If a stock named, 'ABC' had a total traded quantity of 100 shares in a Single day and the Deliverable Quantity is said to be 55 shares, then the Stock Delivery Percentage is 55 Percent. So, one can look at the Delivery Quantity to Traded Quantity by the Percentage.
How to check the Stock Delivery Percentage for a Particular Stock or Share ?
NSE and BSE are the two Stock Exchanges in India, would be published the Security wise Delivery Percentage data in their websites.
For NSE, you can go to NSE India Website. There we can find the 'Products' Menu. Under 'Products' Menu, click the 'Equities' in the Sub category of Capital Markets. You can find there is a link named ' Historical Data '.
Under that link, click the 'Securities-wise Price / Volume Archives' - Search link. After clicking the link, you can find a text box for the Stock Symbol. Type it in the text box and search it. If you don't know the exact symbol for a stock, still you can type a few letters of a stock and it will fetch the data for it.
One can also get the past historical data like for past 2 Weeks or select for a Time Period. After searching it, you can find the Stock Delivery Percentage in the last column of the Display report. You can also download the historical data in the Excel (CSV) format.
OR
If you feel it hard from the above said, try it with below link:
https://www.nseindia.com/products/content/equities/equities/eq_security.htm
For BSE India Website,
https://www.bseindia.com/markets/equity/EQReports/GrossDeliverables.aspx
The above said BSE India link is available in the official website, under 'Market Data' Menu.
If the Delivery Percentage of a stock is consistently increasing or the delivery percentage is more than 50 Percent over a period of weeks, It is said to be ready to rise in the Price. However you should consider not only the Delivery Percentage, but also other Fundamentals and Stock related News.
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www.richinvestingideas.com
very valuable info...thanks lot
ReplyDeleteGood Article , thanks for good explanation , very helpful
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