Surge in Open Interest Signals Increased Market Activity for Varun Beverages Ltd

Varun Beverages Ltd, a prominent player in the beverages industry, has experienced a significant increase in open interest today. The latest open interest stands at 93,722 contracts, marking an increase of 9,641 contracts or 11.47% from the previous open interest of 84,081. This uptick in open interest coincides with a trading volume of 41,312 contracts, indicating heightened activity in the derivatives market.
In terms of overall market performance, Varun Beverages has underperformed its sector, with a 1D return of -1.59%, compared to the sector's return of -0.76%. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, reflecting a bearish trend in the short to medium term. Additionally, the delivery volume has seen a decline of 16.31% against the 5-day average, with a total delivery volume of 52.26 lakh shares recorded on May 23.

With a market capitalization of Rs 1,63,919 crore, Varun Beverages remains a large-cap entity in the beverage sector. The liquidity of the stock is adequate for trades sized at Rs 10.12 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 Varun Beverages, amidst a backdrop of declining price performance.