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Volume Vs Price Change

Discussion in 'Technical Analysis' started by bharatdadlani, Mar 9, 2013.

  1. bharatdadlani

    bharatdadlani New Member

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    Dear Shabbir,

    I have a logical query here. Please refer attachment of TCS March 4th graph, at highlighted area you we observe a spike of high volume, whereas price change is not observed at all either down or high, what we understand is this a buy or sell & why it is so. Please clarify.

    Thanks
     

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    bharatdadlani, Mar 9, 2013
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  2. shabbir

    shabbir Administrator Staff Member

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    It means that there was a bulk deal between some parties at a stipulated price.

    Say for example an investor A is holding TCS with a valuation of above 5Cr. Say 15 Cr. Now if he sells the same in the market there will be lot of price damage happening and so instead of doing that he can talk with management or any other investor B and then they punch the orders such that price match and transaction goes through without any change in the price for the stock.
     
    shabbir, Mar 9, 2013
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  3. bharatdadlani

    bharatdadlani New Member

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    Thanks a lot Mr. Shabbir, its clear to me now.
     
    bharatdadlani, Mar 10, 2013
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Mar 10, 2013
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