Hi,
How to check whether block deal is at buy side or sell side? In some cases price movements may not give clear picture whether block deal was at sell or buy.
Please clarify on this.
Thank you
In a block deal, there is a buyer and a seller and they execute it at a certain price on the exchange. So there is no concept like, block deal at buy side or sell side. A deal can happen only when there are both buy/sell.
Check this for more on block deals.
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When a Block Deal is done .Punters do not look at the price, they look at the parties involved in this BUY SELL Transaction.
If the person who bought the shares is capable of contributing to the growth of the company, the market sees it as a good sign and more public wants to buy into the same company.
If the person who has sold the shares, sold it to some tom, dick or harry and trying to wash the hands off quickly, it is considered as a bad sign and the public who are currently invested sells it off as well
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Thank you Nithin
Thank you for your answer
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WHY BLOCK DEAL MOSTLY HAPPENS IN NSE ?
BSE IS CHEAPER IN COST AND CHARGES !
I UNDERSTAND IN CASH EQUITY THERE IS VOLUME LIQUIDITY PROBLEM IN BSE .
BUT , IN THE BLOCK DEAL , EVERYTHING IS PRE-DECIDED e.g . BUYER , SELLER , PRICE , time ; QUANTITY ETC ETC … THEN WHY DO MOST OF THE BLOCK DEAL HAPPEN IN NSE INSPITEOF the BSE HAVING LOW COST CHARGES ?
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