Adani group stocks: Average deliverable volumes climb manifold in 6 days; here’s what it means for investors

The delivery-based volumes in shares of the Adani group of companies have increased substantially amid the ongoing free-fall in the 10-listed companies of the group companies. With a fall of 56 per cent, Adani Total Gas plunged the most in the past six trading sessions till February 2. Shares of the company dropped to Rs 1,711.50 on Thursday from Rs 3,885.45 on January 24, 2023.

Other group stocks including Adani Enterprises, Adani Green Energy, Adani Transmission, Adani Ports and Special Economic Zone, Ambuja Cements, Adani Wilmar, Adani Power, New Delhi Television and ACC also declined somewhere between 21 per cent and 54 per cent during the same period.

Data available with Ace Equity showed that the six-day average absolute deliverable volumes of Adani Enterprises soared to 27 lakh shares till February 2 as compared with the six-day average of 5.84 lakh between January 17, 2023 and January 24, 2023. However, six-day average deliverable volumes in terms of percentage declined to 17.79 per cent from 25.21 per cent during the same period.

Likewise, the average six-day deliverables volume of Adani Power jumped to 30.82 lakh shares from an average of 8.90 lakh shares (Jan 17-Jan 24). Average deliverable volumes of Adani Ports, Adani Transmission, Adani Green Energy, Adani Wilmar and Adani Total Gas also spiked 680 per cent, 452 per cent, 199 per cent, 229 per cent and 154 per cent, respectively, during the same period.

While decoding the substantial rise in average deliverable volumes, Milan Vaishnav, Founder, Gemstone Equity Research and Advisory said that delivery volumes are a technical input. It denotes the number of (or percentage) of a stock that is marked for either taking or giving a delivery. It means that it is not a trading volume.

For example, if the total traded volumes in a particular stock is 1,00,000 and delivery volumes are either 45,000 shares or 45 per cent — then it would mean that out of the total 1,00,000 shares that were traded, 45,000 or 45 per cent quantity will actually get delivered. In the case of Adani Total Gas, the six-day average deliverable volume in terms percentage stood at 52.55 per cent till February 2 compared with 33.61 per cent six-day average deliverable volume (Jan 17-Jan 24).  

“It is important to correctly interpret delivery volumes, they are read along with the price move. High and above average delivery volumes with price rise is a bullish sign. Similarly, if there are high delivery volumes along with a decline in price is bearish,” Vaishnav said.

“I think very high risk appetite investors are doing bottom fishing in select Adani group of stocks in a staggered manner with a long term view. However, there is no confirmation of bottom as yet,” said Kranthi Bathini, Equity Strategist, WealthMills Securities.

The six-day average deliverable volume of cement majors ACC and Ambuja Cements also climbed 912 per cent and 1,850 per cent, respectively, during the same period. 

Also read: Adani Enterprises shares hit 15% lower circuit on Dow exclusion, other Adani group stocks bleed

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