SRF Ltd. Sees 10.42% Surge in Open Interest Amid Declining Stock Performance

SRF Ltd., a prominent player in the specialty chemicals sector, has experienced a notable increase in open interest today. The latest open interest stands at 40,948 contracts, reflecting a rise of 3,863 contracts or 10.42% from the previous open interest of 37,085. This surge in open interest comes alongside a trading volume of 24,957 contracts, indicating active participation in the derivatives market.
Despite this uptick in open interest, SRF's stock has underperformed relative to its sector, declining by 2.78% today. The stock has faced consecutive losses over the past two days, with a total drop of 3.31% during this period. The intraday low reached Rs 2,819.8, marking a decrease of 3.17% from the previous close. Additionally, SRF is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a bearish trend.

Investor participation appears to be waning, with delivery volume on November 13 recorded at 2.11 lakh shares, down by 9.88% compared to the 5-day average. The stock remains liquid enough for trades sized at Rs 2.32 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 SRF Ltd., amidst a challenging trading environment.