Thread by @BeatTheStreet10

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

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)

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

https://twitter.com/BeatTheStreet10/status/1453285547041034255?t=rUvBt2OPL5yRZ9GHNHDCpA&s=08

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)

Logic : #BulkDeal/ #OFS represent Sale of Equity by Large investor/promoter and that doesnt mean change in fundamental of company Prices came down bcoz of high volume at discounted price
In Normal Scenario in a strong fundamental Company prices get back to the original level(6/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%.

https://twitter.com/CNBCTV18News/status/1560873011430887427?t=B5KW6TzL6qAGv0DBHIQXvQ&s=19

@SaveToDigDeeper