Surge in Open Interest Signals Increased Market Activity for Indian Oil Corporation

Mar 28 2025 02:00 PM IST
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Indian Oil Corporation Ltd (IOC) has seen a significant rise in open interest, reaching 33,768 contracts, alongside a trading volume of 19,990 contracts, indicating increased activity in the derivatives market. Despite a decline in delivery volume, IOC maintains adequate liquidity for trading, reflecting evolving market dynamics in the oil sector.
Indian Oil Corporation Ltd (IOC), a prominent player in the oil exploration and refinery sector, has recently experienced a notable increase in open interest (OI). The latest OI stands at 33,768 contracts, reflecting a rise of 3,406 contracts or 11.22% from the previous OI of 30,362. This surge in OI comes alongside a trading volume of 19,990 contracts, indicating heightened activity in the derivatives market.

In terms of price performance, IOC has underperformed its sector by 1.88% today, with a 1D return of -1.64%. The stock is currently trading below its 5-day, 100-day, and 200-day moving averages, although it remains above the 20-day and 50-day averages. Additionally, the stock has a high dividend yield of 5.37%, which may appeal to income-focused investors.

Despite a decline in delivery volume, which has fallen by 32.98% against the 5-day average, IOC maintains sufficient liquidity for trades sized at Rs 5.58 crore, based on 2% of the 5-day average traded value. Overall, the increase in open interest highlights a significant shift in market dynamics for Indian Oil Corporation, reflecting ongoing developments in the oil sector.
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