F&O stocks: Tata Steel, BPCL among 5 stocks with long buildup
Open interest indicates that bulls are likely to dominate the following counters.
In Tuesday’s trading session, the following five stocks witnessed a build of fresh long positions. Lets first understand how this conclusion is reached that 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.
Tata Steel's stock price jumped 3.84%, and open interest saw a rise of 1.87%.
BPCL price surged by 2.92%, and open interest saw an increase of 1.79%.
Divi's Laboratories rose 2.05%, and the open interest saw an increase of 0.44%.
Bank of Baroda stock rose 1.85%, and the open interest saw an increase of 1.66%.
IOC stock price gained 1.73%, and open interest saw an increase of 1.24%.
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Some additional checks would help traders in taking 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 moved up the stock price
