Federal Bank Sees Significant Open Interest Surge Amidst Price Challenges

Federal Bank Ltd, a prominent player in the private banking sector, has experienced a significant increase in open interest today. The latest open interest stands at 39,812 contracts, reflecting a rise of 4,987 contracts or 14.32% from the previous open interest of 34,825. This uptick comes alongside a trading volume of 33,161 contracts, indicating active market participation.
In terms of price performance, Federal Bank has underperformed its sector by 3.58%, with the stock recording a decline of 6.06% over the past two days. Today, it reached an intraday low of Rs 188.28, down 4.27% from the previous close. The weighted average price suggests that more volume was traded closer to this low price point. While the stock is currently above its 50-day moving averages, it remains below the 5-day, 20-day, 100-day, and 200-day moving averages.

Additionally, delivery volume has decreased by 1.42% compared to the 5-day average, indicating a decline in investor participation. With a market capitalization of Rs 47,019.51 crore, Federal Bank continues to maintain a liquid trading environment, suitable for transactions around Rs 2.07 crore. Overall, the notable increase in open interest highlights a shift in market dynamics for Federal Bank, amidst its recent price challenges.