I want to understand the relevance of bulk deals. How do such deals affect price movement of a company’s stock (if at all they do)? Also, the number of shares bought and sold in a bulk deal are the same and often at the same price. This left me thinking what is the significance of a bulk deal?
I would appreciate if someone could cater to my aforesaid queries.
PS : This is my first post on this forum.
I believe what you are referring to is a block deal (the tab name in your screenshot), not a bulk deal. Both are slightly different from each other. A bulk deal refers to a transaction where a substantial quantity of shares of a particular company’s stock is bought or sold in a single transaction and are executed through the open market on stock exchanges. A block deal, on the other hand, refers to a specific type of bulk deal where a large number of shares of a particular company’s stock are bought or sold in a single transaction between two parties, outside the open market in a separate trading window. For block deals, the timing is from 8:45 AM to 9:00 AM in the morning and one more session in the afternoon 2.05 PM to 2.20 PM. NSE discloses this here: https://www.nseindia.com/market-data/block-deal-watch.
But from my experience, mere execution of a these orders does not necessarily mean that a particular stock is likely to move in the direction of the bulk/block trade. Also, based on my understanding, selling and buying might infer selling the already held units and then buying new units, rather than simultaneously selling and buying the same units. No information on this anywhere, so this only made sense to me.
I also like to keep an eye on insider tradings, which are reported by NSE on their website: https://www.nseindia.com/companies-listing/corporate-filings-insider-trading. I find this to be a much better indication. I have done my own research on this for many years. However, there is no guarantee on this as well, else everyone would have become crorepati by now. As an example, just look at the insider info 2 weeks back, almost 15 people from HDFC had bought units when it was hovering at its last support level. It does not work always! It is important you conduct your own experiments and research before making any investment decisions.
Thank you for such a detailed and an enlightening reply. Just to add to the last paragraph of your reply, insider trades for every company can also be checked from websites such as Screener and simplywall.st and they do help a bit in predicting the price movement.
