Plain vanilla volumes are helpful but add a few twists and the tale gets interesting! Try dividing the total traded volumes in any stock by the number of trades initiated on that counter. That will give you the ticket size per trade (TST). How much will an average retail trader trade per transaction? No more than 2-5 lots in derivatives (futures and options – F&O) and 8,000 – 10,000 share per transaction in the delivery segment.What if you see the TST jump to 25 lots in or higher in F&O or 50,000 shares per transaction in the cash segment? The big boys or institutional players are here and they are buying and/or selling aggressively. These institutional players are more right than wrong and it pays to follow the big boys.You may have doubts like – what if institutions trade 10 times with 5,000 shares instead of 50,000 shares in one shot? Well, that may mask their trade where the TST is concerned but the overall number of trades executed on that day will be far higher than usual. That means institutional players are accumulating on the sly and bigger price moves lie ahead.
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