Shriram Finance, IRCTC Surge with Long Buildup Alongside 3 Other F&O Stocks

On Thursday, Shriram Finance, REC, and IRCTC were among five stocks that saw a rise in new long positions.

A rise in long positions occurs when both the stock price and open interest increase. This is a strong indicator, especially if trading volume also goes up. Higher open interest suggests that buyers are likely to take control of these stocks.

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Here’s a summary of the stock movements:

• REC: Stock price up by 7.16%, open interest up by 0.38%.
• Hindustan Aeronautics: Stock price up by 6.23%, open interest up by 4.24%.
• IRCTC: Stock price up by 5.86%, open interest up by 0.25%.
• PFC: Stock price up by 5.77%, open interest up by 0.58%.
• Shriram Finance: Stock price up by 4.77%, open interest up by 3.05%.

For traders, there are a few key points to consider for better trading decisions:

1. 52-week Highs: If these long positions build up near the stock’s 52-week high, there’s a good chance the stock might break through its previous high.
2. Moving Averages: If the stock price crosses important moving averages (like the 20, 50, or 100-day average) while open interest is rising, it’s a bullish sign.
3. Options Activity: Look for unusual increases in long positions in out-of-the-money call options, especially those far from the current price. This can indicate that knowledgeable investors are making significant bets.

By keeping these factors in mind, traders can make more informed decisions based on the buildup of long positions.