To understand it we have to look at what “short selling” means. When a trader is expecting the stock prices to fall, he may sell the stock without owning that and buy at a lower price, for example, stock XYZ is trading at 100, a trader sells the stocks at Rs 100 and buys it back at Rs 90. He made a profit of Rs 10. Selling the stocks without owing the underlying stock is called short selling.
In Monday s trading session, the following five stocks witnessed a build of fresh short positions. Let us first understand how this conclusion is reached whether the stock has seen a buildup of fresh short position or not.
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.
A sustainable up move above 19,900 can take the Nifty towards all-time highs but a decisive move below 19,600 will likely open a near-term downward correction
Based on the OI percentage, 79 stocks, including Nestle India, Havells India, Aditya Birla Capital, MCX India, and TVS Motor Company, saw long build-ups