Thread by @theBuoyantMan

This is ITC chart in 2020. It's interesting that volumes have significantly risen in ITC in 2020. The price has been in a range between 125-130 range to 200-210 range.

Those big red volume candles you see when day closed negatively? They hold some information too.

Use this to identify delivery %.

trendlyne.com/equity/deliver…

The information contained within those big red candles is that in each of those big red candles on negative closing days, delivery volumes have spiked up 2-3x the average days.

So, we have the following facts:

- Price has been staying in a tight range.
- These big red volume candles suggest significant selling.

What does this mean?

A) Huge quantities were being sold
B) That also means similar quantities were bought.

But, here's what's peculiar.

Over the last few many weeks, the delivery % of ITC has been significantly increasing. And, each time a big red candle was made, the delivery % on such days was more than the average delivery %. Here's a sample.

Now, I am not an expert at analysing volumes. I could be wrong. But delivery volumes have increased over last few many weeks, and the price has been in a tight range. This usually happens when institutions are slowly acquiring the company or offloading their stake.

With pessimism around the stock amongst retail investors, and the price being beaten down, the theory that has a higher probability of holding is institutions acquiring it slowly. Any other theories you have, you are welcome to comment and share your analysis.

This is just the technical aspect of it. The fundamentals, you have to read the annual reports and listen to the con-calls, and then make your conviction. But don't be blinded by the fundamentals alone. Technicals will help you too - just remember that and use them prudently.