Tata Power Sees Significant Open Interest Surge Amid Increased Derivatives Activity

Tata Power Company Ltd, a prominent player in the power generation and distribution sector, has experienced a significant increase in open interest today. The latest open interest stands at 121,593 contracts, reflecting a rise of 12,214 contracts or 11.17% from the previous open interest of 109,379. This uptick coincides with a trading volume of 56,204 contracts, indicating heightened activity in the derivatives market.
In terms of performance, Tata Power has outperformed its sector by 0.62%, with a one-day return of 0.29%. The stock is currently trading above its 5-day, 20-day, and 50-day moving averages, although it remains below the 100-day and 200-day moving averages. Notably, there has been a decline in investor participation, with delivery volume dropping by 25.67% compared to the 5-day average, totaling 21.88 lakh shares on March 25.

The stock's liquidity remains robust, accommodating trade sizes of approximately Rs 5.13 crore, based on 2% of the 5-day average traded value. With a market capitalization of Rs 1,20,528 crore, Tata Power continues to hold a significant position in the power sector. Overall, the increase in open interest highlights a notable shift in market dynamics for Tata Power.