InvestorQ : Does looking at bulk deals data over time give unique indications?
Arya Nanda made post

Does looking at bulk deals data over time give unique indications?

Rashi Mehra answered.
3 years ago
This is possibly the most important takeaway from the bulk deals data. Ideally, take the consolidated bulk deals data for a period of 2 years and try to sort it based on the stock and the date. That will give you a clear idea of how the stock prices have moved in conjunction with the bulk deals. It will also give you an idea of which traders and investors are typically the most adept at catching on to trends as evidenced by future movement in prices. When you combine these factors, the bulk deals actually become meaningful and actionable from a stock selection perspective. As we know the bulk deals consist of intraday buying and also arbitrage buying. The bulk deals do not worry about whether the purchase is for delivery or for intraday. Also, a lot of buying is arbitraging buying which is matched by contra positions in futures. You need to adjust for that too.
There is an important caveat here. Bulk deals only reveal part of the interest build-up in the stock and many times may not be indicative. But longer term bulk deals aggregation does give you important clues. But, at best these bulk deals can be a starting point for you. The onus is then on you to do your detailed study and homework before embarking on an investment decision. The moral of the story is that there is a lot of hidden wisdom in bulk deals; you just need to use it cautiously! As a data point, bulk deals are surely useful.