When the stock prices move up and open interest on the counter also moves upward, it is taken as a sign of a long buildup. The signal is considered more reliable if the volume on the counter has also seen an increase.
Nifty Bank rallied more than 600 points to close at 45,502. The Nfty50 closed with gains of over 100 points above 21,700. PNB, ICICI Bank, Bank of Baroda, and IDFC First Bank led the gains, while some profit-taking was seen in Bandhan Bank as well as AU Small Finance Bank.
A significant uptick in futures open interest signifies a substantial growth in the number of active, unexpired futures contracts in a specific security.
when the stock prices move downward and open interest on the counter increases, it is taken as a sign of a short build-up. The signal is considered more reliable if the volume on the counter has also seen an increase as the stock price declines.
RIL shares were consolidating from 2,200 to 2,700 for over two years. Last week, the stock broke out of this range after a long time with good volumes. Traders can buy the stock for a target price of 3,000. The stop loss for the stock would be 2,690 on a closing basis.