Surge in Open Interest Signals Shift in Market Dynamics for Info Edge
Info Edge (India) Ltd has seen a notable rise in open interest, reaching 50,082 contracts, alongside a trading volume of 25,760 contracts, indicating increased activity in the derivatives market. Despite a decline in stock price and delivery volume, the company maintains adequate liquidity for trading.
Info Edge (India) Ltd, a prominent player in the E-Retail and E-Commerce sector, has experienced a significant increase in open interest today. The latest open interest stands at 50,082 contracts, marking a rise of 9,384 contracts or 23.06% from the previous open interest of 40,698. This surge coincides with a trading volume of 25,760 contracts, indicating heightened activity in the derivatives market.In terms of price performance, Info Edge has underperformed its sector by 1.52%, with the stock falling 2.19% today. It reached an intraday low of Rs 1,377.2, reflecting a decline of 2.52%. The stock's weighted average price suggests that more volume was traded closer to this low price point. While the stock remains above its 5-day and 20-day moving averages, it is currently below the 50-day, 100-day, and 200-day moving averages, indicating a mixed trend in its short to medium-term performance.
Additionally, delivery volume has decreased by 14.71% compared to the 5-day average, suggesting a decline in investor participation. Despite these fluctuations, the stock maintains sufficient liquidity for trades up to Rs 7.5 crore, based on 2% of the 5-day average traded value. Overall, the notable increase in open interest highlights a shift in market dynamics for Info Edge (India) Ltd.
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