Block Deals

 

FAQs

What is block deals?

Bulk deals are those deals that involve transactions of at least 0.5% of the total listed shares of a company.

How do I find block deals?

You may get a list of block deals reported to the BSE and NSE at the end of the day by the members. You can check the company name as well as the client for whom the deal was done. This enables you to see who is buying and who is selling stocks. You also get the rate and quantity of the block deal.

Is Block Deal good for stock?

Block deals is favorable where investors buy shares. It can increase the stock price due to increased demand. Conversely, where shares are sold, can lead to a temporary decline in block deals. The extent of the impact depends on the size of the agreement and the prevailing market conditions.

What time is the block deal in NSE?

Timing for block deals in NSE for 35 minutes in the morning trading session from 9:15 am to 9:50 am and for 35 minutes in the afternoon trading session from 2:05 pm to 2:40 pm. The price of the block deal must be within a certain range of the prevailing market price, as determined by the exchange.

What is block deal session timings?

The traders are allowed to enter the Block Deal Orders only during the first 35 minutes of the continuous trading session i.e. from 9:15 am to 9:50 am.

Should we buy block deals stock for positional trading?

Yes, buy and hold for 1 month to 6 months.

What are the Strategies for trading block deals?

Trading block deals requires a different approach than regular market trading. Here are some strategies to consider when trading block deals:

  1.  Timing is crucial: Block deals can cause significant price movements, so timing your entry and exit points is essential. Monitor the market closely and be prepared to execute your trades quickly when the opportunity arises.
  2.  Use limit orders: When trading block deals, it's recommended to use limit orders rather than market orders. This allows you to set a specific price at which you want to buy or sell, ensuring that you get the desired execution price.
  3. Consider market impact: Be mindful of the impact your trades may have on the stock price. If you're trading a large block of shares, your transactions can influence market sentiment and potentially move the price against you. Consider breaking up your trades into smaller blocks to minimize market impact.
  4.  Do your research: Before trading block deals, conduct thorough research on the stocks involved. Analyze the company's fundamentals, market trends, and investor sentiment. This will help you make informed decisions and increase your chances of success.
  5.  Diversify your portfolio: Block deals can be risky, as they often involve concentrated positions. To mitigate risk, consider diversifying your portfolio and not relying solely on block deal opportunities. This will help spread your risk across different stocks and sectors.