F&O stocks: Infosys, BHEL among 5 stocks with long buildup
Open interest indicates that bulls are likely to dominate the following counters.
In Friday’s trading session, the following five stocks witnessed a build of fresh long positions. Let us first understand how this conclusion is reached whether the stock has seen a buildup of fresh long position or not. When the stock prices move up and open interest on the counter also moves upward, it is taken as a sign of a long buildup. The signal is considered more reliable if the volume on the counter has also seen an increase.
Hindustan Copper's stock price jumped 1.51%, and open interest saw a rise of 1.74%.
National Aluminium surged by 1.24%, and open interest saw an increase of 1.62%.
BHEL rose 0.98%, and the open interest saw an increase of 0.81%.
Infosys stock rose 0.4%, and the open interest saw an increase of 0.88%.
AU Small Finance Bank's stock price gained 0.09%, and open interest saw an increase of 0.97%.
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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 fresh long build has come when the stock is very close to its 52-week high, that increases the probability of the stock making an attempt to break its previous 52-week high.
Second, if this long buildup is accompanied by any bullish crossover, which means that whether in the current up move when the open interest has
