5 stocks witnessing short build-up as open positions continue to soar higher

India Infoline News Service | Mumbai | May 17, 2018 08:32 IST

Derivative data points are indicating a continued downward momentum in selected stocks, as open positions soar higher with the declining stock price.

Indian equities are expected to open flat amidst mixed global cues. As the volatility continues to soar higher backed by rising crude oil price, depreciating rupee and state-specific political uncertainties, traders are adding up fresh open positions (open interest) at every declining price in the following stocks, hinting a build-up of short positions.

OI Gainers

Underline

OI (lakhs)

% OI Chg

Price

% Price Chg

Action

MUTHOOTFIN

20

24.1

422

(1.5)

Short Buildup

PNB

806

17.3

76

(12.0)

Short Buildup

CIPLA

129

16.2

557

(3.0)

Short Buildup

CHOLAFIN

11

12.3

1539

(2.8)

Short Buildup

BANKBARODA

549

10.4

133

(5.2)

Short Buildup


Based on the derivative data points, we expect a continuation of downward momentum in all the above-mentioned stocks.

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 futures and options market. Open interest tends to act as a leading indicator of continuation or an impending change in trend.


 

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