Surge in Open Interest for Federal Bank Signals Shift in Market Dynamics Amid Performance Challenges

Federal Bank Ltd, a prominent player in the private sector banking industry, has experienced a significant increase in open interest today. The latest open interest stands at 28,084 contracts, reflecting a notable rise of 5,496 contracts or 24.33% from the previous open interest of 22,588. This surge in open interest comes alongside a trading volume of 25,407 contracts, indicating active market participation.
In terms of price performance, Federal Bank has underperformed its sector by 1.42%, with the stock recording a 1D return of -1.69%. Over the past week, the stock has faced consecutive declines, totaling a drop of 6.42%. The stock reached an intraday low of Rs 198.3, marking a decrease of 2.04% during the trading session.

Despite these challenges, the stock remains above its 200-day moving average, although it is trading below its 5-day, 20-day, 50-day, and 100-day moving averages. The liquidity of Federal Bank is adequate for trading, with a delivery volume of 44.52 lakh shares on July 31, which has decreased by 13.98% compared to the 5-day average.

In summary, the notable increase in open interest for Federal Bank highlights a shift in market dynamics, even as the stock grapples with recent performance challenges.