If you are a new investor and always get confused about the real meaning of stock delivery. Then today we will understand what does stock delivery mean and how knowing it could help you in making better investment decisions.
Taking a stock delivery means buying a stock and holding it with you more than a day. When you buy and sell a stock on the same day, it is called Intraday Trading. So whenever you are bullish on a stock for the long term then you are taking delivery of that stock.
Could knowing the delivery of a stock help you in making a better investment decision?
Yes, Suppose the delivery percentage of a stock is increasing which means that number of stocks are getting transferred from one investor to another (also said as the stock is exchanging hands). If the stock price is also increasing with the delivery of stock, then plus sign that investors are getting bullish on the stock.
You should not link delivery percentage with the volume of the stock. The stock volume represents the number of which get stock traded whereas stock delivery represents the number of stock which exchanges hands.
You can check delivery percentage on daily basis on StockEdge App. Now, check this screenshot of stock deliveries of Satin Creditcare.
For the last 4-5 days, stock delivery has consistently increased with the rising stock prices. It directly implies the long-term bullishness on the stock.
I hope this post was able to shed some light on the meaning of delivery of the stock.
Read: How to invest when market is all time high?
