In Thursday’s trading, five stocks showed a new increase in short positions. Short selling happens when traders expect a stock’s price to drop. They sell the stock without owning it, hoping to buy it back later at a lower price.
When a stock’s price falls and the open interest increases, it indicates a short build-up. This signal is more reliable if trading volume also goes up as the stock price falls.
Sun TV’s price fell by 2.46%, and open interest increased by 2.11%.
Hindustan Unilever dropped 2.29%, with a 1.26% increase in open interest.
Hindalco’s price declined by 2.1%, and open interest rose by 0.56%.
Ipca Labs saw a 1.9% price drop, coupled with a 3.68% increase in open interest.
Asian Paints fell by 1.73%, and open interest went up by 4.67%.
For traders, it’s important to check for any bearish crossovers when open interest rises during a downward move. This means the stock price falls below its 20, 50, or 100-day moving average. Also, watch out for any significant increase in long positions in far-out-of-the-money put options, indicating a possible downside.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
