Surge in Open Interest Signals Increased Market Activity for Federal Bank Amid Price Decline

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 29,276 contracts, reflecting a notable rise of 6,688 contracts or 29.61% from the previous open interest of 22,588. This surge comes alongside a trading volume of 37,541 contracts, indicating heightened activity in the derivatives market.
In terms of price performance, Federal Bank has underperformed its sector by 2.1%, continuing a downward trend with a 7-day consecutive decline totaling 7.13%. The stock reached an intraday low of Rs 196.85, down 2.76% for the day. Additionally, it is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a challenging market position.

Despite a delivery volume of 44.52 lakh shares on July 31, which has decreased by 13.98% compared to the 5-day average, the stock remains liquid enough for trades sized at Rs 3.34 crore, based on 2% of the 5-day average traded value. Overall, the increase in open interest highlights a notable shift in market dynamics for Federal Bank, amidst ongoing price challenges.