Trading in shares can be as intra day and interday trading.
Intra day trading is where one buys and then sells the same without holding, or one sells and then buys at a different time of the same trading day. There can be many such cycles and turnover. But at the end the people will not be holding the shares but they will be pocketing the profit or suffering the loss in the net transactions.
However those who really want to keep the stock for a longer period, will buy the shares and get it transferred in their name or get it delivered in their Demat account. Here the shares will be taken out of the seller's Demat account and credited to the buyer's Demat account within the specified delivery period. Such stocks traded are called deliverable shares and the quantity of all such shares traded is called deliverable quantity.
The total quantity of shares traded in a day will be the total of Intra day traded quantity and the deliverable quantity.
When the percentage of deliverable quantity is increasing; it gives an indication that people are acquiring the share for long term investment. That shows the people have faith on the good growth of the company and its shares. Naturally there is a chance of share price going up.
However the stock market has more short term investors and intra day traders. Hence the deliverable quantity on highly traded shares will be low,as people are not interested in long term investment, but want to earn the intra day profits on price changes. Deliverable quantity will be more on stocks where the traders and MFs play less and the investors are more interested in dividends and bonus share issues, and also on shares which do not have high fluctuation but steady and stable growth.
While considering the Traded quantity and deliverable quantity one should not just go by percentage s but should see the numerical quantity of total shares traded, and also the daily traded quantity and the total market exposure of that stock. One should also consider the averages of a reckonable long period.
Delivery quantity should be taken just as an indicator and should not be relied as a decisive, decision enabling factor.