Channel estimation is considered as an important phase in Multiple Input Multiple Output – Orthogonal Frequency Division Multiplexing (MIMO-OFDM) networks which can enhances the performance significantly. Channel estimation widely classified as pilot based, blind and semi-blind channel estimation. The pilot-based channel estimation decreases the data transmission rate and spectral efficiency. To overcome these issues of existing schemes, we present a novel blind channel estimation technique. According to proposed scheme, we transmit the data in a block-wise manner. The proposed scheme uses precoding technique to establish the correlation between these blocks. Further, we use channel correlation to solve the diagonal uncertainty of correlation matrix which helps to improve the system performance. We present a comparative analysis study which shows that proposed approach can achieve better performance in terms of Normalized Mean Square Error (NMSE) and Mean Square Error (MSE) when compared with existing techniques.