Shriram Finance Sees 19.19% Surge in Open Interest Amid Increased Trading Activity

Shriram Finance Ltd, a prominent player in the Non-Banking Financial Company (NBFC) sector, has experienced a significant increase in open interest today. The latest open interest stands at 102,914 contracts, reflecting a notable rise of 16,566 contracts or 19.19% from the previous open interest of 86,348. This surge coincides with a trading volume of 65,109 contracts, indicating heightened activity in the stock.
Despite this uptick in open interest, Shriram Finance has underperformed its sector, with a decline of 1.11% today. The stock has been on a downward trend for the past two days, resulting in a total return of -0.72% during this period. However, it is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a relatively strong position in terms of historical price performance.

Investor participation appears to be waning, as evidenced by a delivery volume of 35 lakh shares on October 30, which has decreased by 31.73% compared to the 5-day average. The liquidity remains adequate, with the stock being liquid enough for a trade size of Rs 11.45 crore, based on 2% of the 5-day average traded value. Overall, the increase in open interest highlights a notable shift in trading dynamics for Shriram Finance, amidst a backdrop of mixed performance indicators.