Share Market Update: Open interest Guide (January 24, 2019)

Market activity can be gauged by tracking the open interest data points.

Jan 24, 2019 03:01 IST India Infoline News Service

Indian equities are expected to open higher amidst positive global cues. Tracking the global cues, major Asian indices are trading with a positive bias with the US indices closing in positive territory leading to a possible positive opening for the Indian equities. During yesterday's trade, markets witnessed a sharp sell-off in the last hour of trade, closing the day at intraday low levels, indicating a selling pressure for the index at the higher levels. Tracking the open interest data points of the benchmark indices, both Nifty & Bank Nifty have added fresh open interest with a fall in the underlying price, hinting a marginal build-up of short positions. As the January contracts are approaching to expire, stock specific activity could take centre stage.

Following is the list of stocks that are likely to be in action during today's trading session, backed by the major shifts in their open positions, witnessed in yesterdays trade.

OI Gainers
Underline OI (lakhs) % OI Chg Price % Price Chg Action
ICICIPRULI 70 68.8 306 (11.3) Short Buildup
OFSS 1 25.0 3781 2.4 Long Buildup
ITC 878 13.7 279 (4.1) Short Buildup
SYNDIBANK 266 9.4 36 (3.1) Short Buildup
OI Losers
Underline OI (lakhs) % OI Chg Price % Price Chg Action
KPIT 8 (71.5) 217 0.2 Short Covering
MINDTREE 32 (11.4) 910 (0.9) Long Unwinding
REPCOHOME 9 (9.1) 409 (5.1) Long Unwinding
ASIANPAINT 77 (7.0) 1400 (0.7) Long Unwinding
RELCAPITAL 142 (6.2) 210 1.3 Short Covering

Note: Open interest is the total number of outstanding contracts that are held by market participants at any point in time. It measures the total level of activity in the futures and options market. Open interest tends to act as a leading indicator of continuation or an impending change in trend.

Price and Open Interest rule is a piece of generic information and not a recommendation to buy or sell.
PRICE OPEN INTEREST MARKET OUTLOOK
Decrease Increase Short build up
Decrease Decrease Long Unwinding
Increase Increase Long build up
Increase Decrease Short covering

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