F&O stocks: Exide Industries, PNB among 5 stocks with short buildup

economictimes.indiatimes.com:

Coming to the buildup of fresh short positions, when the stock prices move downward and open interest on the counter increases, it is taken as 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.

Dalmia Bharat's price dropped by 1.94%, and the open interest saw an increase of 1.78%.

Exide Industries declined by 1.9%, and open interest saw a rise of 0.02%.

PNB fell 1.87%, and open interest saw an increase of 12.82%.

Chambal Fertilisers and Chemicals' price fell by 1.88%, and open interest saw a rise of 5.95%.

Bharti Airtel's stock price declined by 1.82%, and open interest saw a rise of 0.02%.

Some additional checks would help traders make better trading decisions as they increase the probability of a follow-up of the upward movement in the stock price.

First, if this long build-up is accompanied by any bearish crossover, which means that in the current down move when the open interest has moved up the stock price has moved below its 20, 50, or 100-day moving average. Another couple of points that traders should keep in mind when taking a trade by looking at the matrix of build-up of short positions based on open interest. Also check whether there is any extraordinary build-up of long positions in any out-of-money put option, especially any far-of-the-money out option. That indicates the probability of any informed person taking exposure through options for any possible downside.