Open interest in RELIANCE has gone up with rise in prices. The gain in OI with rise in price indicates that counter saw built up of long positions as prices moved up from lower levels. On the last day of the week, counter saw gain in OI with marginal drop in prices indicating built of short positions and profit booking in the counter at current levels. The counter may show further strength if it sustains above 2200 levels where we may see fresh buying emerging in the counter.
Open interest in TATASTEEL has gone marginally down with marginal rise in prices. The drop in OI with fall in price indicates counter witnessed short covering of positions at current levels as prices moved up from lower levels thus suggesting strength in the counter. On the last day of the week, counter saw drop in OI with fall in prices indicating liquidation of long position in the counter from current levels thus suggesting uncertainty prevails in the counter. The counter may show strength if it sustains above 850 levels where we may see fresh buying emerging in the counter.
My disclosure is I have investment in both the above stocks but not in Futures but in Cash Market.