Tata Steel Sees Significant Open Interest Surge Amid Increased Derivatives Activity

Tata Steel Ltd, a prominent player in the Ferrous Metals industry, has experienced a significant increase in open interest (OI) today. The latest OI stands at 75,439 contracts, reflecting a rise of 8,246 contracts or 12.27% from the previous OI of 67,193. This uptick in OI comes alongside a trading volume of 42,400 contracts, indicating heightened activity in the derivatives market.
In terms of price performance, Tata Steel has shown resilience, gaining 0.86% today, which is in line with the sector's performance of 0.55% and the Sensex's return of 0.48%. The stock has managed to reverse a two-day decline, trading within a narrow range of Rs 1.51. Notably, Tata Steel is currently positioned above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a positive trend in its price trajectory.

Despite a decline in delivery volume, which fell by 53.78% compared to the 5-day average, the stock remains liquid enough for a trade size of Rs 9.55 crore, based on 2% of the 5-day average traded value. With a market capitalization of Rs 1,99,624.08 crore, Tata Steel continues to hold a strong position in the market. Overall, the increase in open interest and the stock's performance metrics highlight a notable day for Tata Steel.