Posted by: samfolio on ( 02-Nov-07 10:07 ) | Rating | | Price : BSE: Rs 58.85 ( -3.21 % ), NSE: Rs. 60.20 ( -0.82 % ) | Dear All, Very intresting deals. Bulk Deals and Block
Deals in TD.
There are intresting deals happening in TD on NSE
these days.
For the last 3 days there are Block deals in TD
They are Block deals and not the Bulk deals.
Just to understand the difference between a "Bulk
Deal" and a "Block Deal".
Bulk deals are the one in which someone buys or sells
the shares directly in the market from one or many
buyers/sellers.
You can see a Bulk order placed in the order queue in
the Order Book of the particular scrip.
Whereas in a Block deal, the trade happens between two
agreed parties.
It happens when one party would like to buy or sell to
other party at an agreed price between them.
You cannot see this kind of orders placed in the Order
Book, because it is not supposed to be visible to the
general market before trade, but is informed to the
exchange after that.
Looking at the kind of deals that are happening in the
last 3 days, i.e. the Block deals happening in the
last 3 days, an intresting observation can be made.
It seems that one party which has been asked to
accumlate over a period of time has now started
transferring the shares to the other original party.
They have accumulated enough no. of shares so far and now the time
has come to transfer those shares to the agreed buyer.
And that is why these continous block deals .
In the last 1 year there were only Bulk deals reported
for TD in NSE.
There were never a Block deals before in TD as
reported in NSE.
The 20% accumulation which the FII's have done in the
last 1 year were through the bulk deal. Remember the
huge buy orders that we used to see couple of months
back.
They used to pick up directly from the market, becuase
then were the most uncertain times, and lot of jittery
investors who used to provide them with enough shares.
But as the image of the company started improving and
better visibility prevailed, i think the institutions
didn't get much of the bulk orders as they needed.
The bulk deals have come down in the last 2 months.
NSE doesn't report any bulk deal after the date
31-Aug-2007 in TD. i.e no Bulk deals for last 2
months.
But the slow accumulation in small and little
quantities done by the operators or accumulators
whatever you call, over a period of time, have started
transferring those shares to the original parties.
It seems the time and deadline is coming close, and
and they are in a hurry to transfer all these shares.
That is why one day after another, for the last 3
days, the transfer of shares is happening to the
original party in the form of this pre-agreed Block
deals.
The names of the original parties are tactically kept
secret for the time being by keeping the block deal to
a lesser size.
You can clearly see that the order of each bulk deal
is around 5 lac shares in the last 3 days
I think, tommorrow there maybe one more block deal of
similar size, and one more tranche of shares would be
transferred to the original buyer in the form of Block
Deal.
And Now the real thing.
Who this original buyer can be, well, it should
definitely be that Paddy's strategic buyer that he
always talks about.
All pointers indicate that the strategic investor has started
buying a stake in TD now.
Cheers!
Sam
PS:- I think moneycontrol clubs a bulk deal and block
deal together. But the for original data and more
clarity on deals, NSE has to be assumed as the right
source of information.
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