Technical view by Nooresh

Religare Enterprises – Banking License contender. Delivery percentage in the stock 5% !!!!!

One of the major analysis point in midcaps is to look at delivery volumes. A low delivery volume percentage indicates a possibility of intraday speculation by traders,punters,operators or even hints of circular trading.


Now let us look at a stock


Religare Enterprises. ( This is the company from ranbaxy and is also a contender for the banking license. Also promoters have sold 10%  stake in the last quarter )


Todays NSE Volumes – 155695


Deliverable Quantity – 8432


Deliverable Percentage – 5.42%


This implies of all the trading done almost 95% of the trades were squared in the day.

The delivery percentage is not just low for a day but for almost 90% of the days in last two quarters. This can be seen in this nice chart from

It can be clearly seen how the delivery percentage has suddenly dropped from 85-90% in the earlier part of year to 5-10% and at the same time volumes have gone up by 50 times.

Delivery Religare


What is surprising is

-> The stock is not in futures where generally deliverable percentage is a bit lower.

-> The stock is not traded frequently by traders as per market feedback.

-> There is no daily news item on the stock for intra day speculation everyday.

-> Promoters  alongwith institutional and corporate bodies hold almost 85-90% of equity or more. Public holds barely 8-10% of the shares.

-> Total number of shares is 1.5 cr approx. Implies float would be around 15 lakh shares or even lesser.

-> Daily traded quantity on both exchanges combined is 2.5-3.5 lakh shares !!!

-> Deliverable percentage is only 5-10% max.


The whole question now boils down to who trades intra day in the above stock every day for last 6 months.

This looks like circular trading by some punters or there is more to it is difficult to say :) but all said and done this is generally a red signal.

Thanks and Regards,

Nooresh Merani

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Article by Nooresh Merani

Nooresh has written 2531 articles.

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