Hi rk/AW sir,
Please give some deatils of bulk/block deals.Ex-what is this and who can use it etc.
Regards
VJAY
Bulk deals are generally institutional orders because they trade in big quantity. If they place a normal buy order of 10000 shares at a price level say 98, other players will notice this and they will start buying above 98.. and big order might not get filled. (infact, this is one of the method used by smart traders to fool novice trader. they will put big buy order at lower price, seeing that novice traders will start buying and smarty keeps selling. Once he has sold his stocks, he will remove his big buy order).
So bulk order gives the liquidity to trade big qty at prespecified price, without affecting the regular trades. This appraoch is also used by fund houses to shuffle their portfolio from one scheme to another i.e. HDFC Equity fund will sell stock that are bought by HDFC taxsaver.
If you can find a method to read bulk deals, then can design some type of swing trading strategy around it. Ofcourse, it needs to back tested. This is very strong indicator of the flow of smart money.
This is my understanding of bulk deal. I will be looking for others response.