In Last 1 Month $4Bn worth of stocks have changed hands via Block Deals!!
Let's understand how you can make money out of it?
(1/n)
OFS/Bulk strategy by @anantladha25
Let's understand how you can make money out of it?
(1/n)
OFS/Bulk strategy by @anantladha25
First Let's understand What is OFS/Bulk Deal?
In these deals Promoter/Large/ Institutional Investor sell Shares btw 0.5 to 5% of Equity.(2/n)
In these deals Promoter/Large/ Institutional Investor sell Shares btw 0.5 to 5% of Equity.(2/n)
These deals are to be announced in advance and notified to exchange earlier than the day of trade.
Largely it is about "Buy the Rumour, Sell on News".
(3/n)
Check out our earlier tweet on this
Largely it is about "Buy the Rumour, Sell on News".
(3/n)
Check out our earlier tweet on this
So, When a news of OFS/Bulk Deal comes, Companies with sound fundamental and news is not about someone's exit, rather people are excited about entry and optimism about the share.(4/n)
Now let's understand what to do in case of Bulk Deal?
- In general block deal are done below 4-6% discount to CMP(let's say 100).
You just need to try to enter at the lowest possible price (Around 94-95).
Target gain - 4-6%(Around 100)
Time Period - 2.5 to 5 Days(5/n)
- In general block deal are done below 4-6% discount to CMP(let's say 100).
You just need to try to enter at the lowest possible price (Around 94-95).
Target gain - 4-6%(Around 100)
Time Period - 2.5 to 5 Days(5/n)
You can easily see the returns that companies have given after Block Deal/QIP like 29% in Zomato, 12% in HDFC AMC etc. You can check it 👇
(7/n)
Average Stock Price Gain is 11%.
(7/n)
Average Stock Price Gain is 11%.
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