Surge in Open Interest for Federal Bank Signals Increased Market Activity Amidst Stock Decline

Federal Bank Ltd, a prominent player in the private banking sector, has recently experienced a significant increase in open interest (OI), indicating heightened trading activity. The latest OI stands at 44,131 contracts, up from the previous OI of 34,825, marking a change of 9,306 contracts or a 26.72% increase. This surge in OI coincides with a trading volume of 57,671 contracts, reflecting robust market engagement.
Despite this uptick in open interest, Federal Bank's stock performance has been underwhelming, underperforming its sector by 4.07%. The stock has faced consecutive declines over the past two days, resulting in a total drop of 7.01%. Today, it reached an intraday low of Rs 187.85, down 4.49%. The weighted average price indicates that more volume was traded closer to this low price, suggesting a challenging trading environment.

In terms of liquidity, the stock remains accessible for trades, with a delivery volume of 50.92 lakh shares on April 30, although this represents a slight decline of 1.42% compared to the five-day average. Overall, while the increase in open interest signals active trading, the stock's recent performance reflects broader market challenges.