Traderji, as you have mentioned, one needs to own large amount of shares of the script concerned to take advantage of prize difference. Now, first of all, it is not possible to own even 100 out of 800 odd shares listed in NSE and that too in large quantities. I know some guys do this by borrowing shares or stuff like that but its not quite clear. As far as I know, most brokers do not allow intraday interexchange transactions and even if they do, then also we would be required to give delivery of shares first before getting them in our account which won't be possible. Hence, the option left with us is to square off separately in NSE and BSE.
Secondly, how do we get to know the scripts with best arbitaging opportunities out of the 800 NSE scripts. Is there any software available for this? Probably techies in this forum can help a bit with some excel to do this job using asp or that kind of stuff which retrieve data from websites, but this needs to be done with nse and bse websites directly as yahoo data is delayed and certainly speed needs to be kept in mind.
An Observation: I have seen that when the market opens, some script show a huge upward movement in nse whereas the prizes remain low on bse. This, however, is corrected wthin a few minutes. To me, this seems to be because of huge orders placed before market hours by institutional bodies who trade mostly in NSE. This happens almost everyday. Just look at "top gainers and losers" at nseindia.com and then compare them with bseindia.com. I have tried to capitalize on this and tried placing market prize orders as they are executed first, but orders were either executed at unfavorable prize (other than market prize) or prizes have converged significantly.
Any feasible solution??????
