When the stock prices move downward and open interest on the counter increases, it is 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.
Indian markets were trading in the red on Thursday dragged by auto, energy and FMCG stocks. Nifty fell by 130 points to the day s low of 22,303.80 after hitting a fresh lifetime high of 22,619, thanks to the surge seen in index heavyweight HDFC Bank.
RVNL, Zomato, GLT Infra, Dish TV, Power Grid, Punjab National Bank and IREDA saw rise in volumes. HDFC Bank, IRFC, Indus Towers, Reliance Industries, RVNL and IndusInd Bank were a few stocks leading the turnover chart on NSE.