Short covering refers to the buying of shares in order to close an existing short position or a position that has been sold. It is typically done when investors who have sold shares short decide to buy them back to cover their short position. Short covering signals a shift in view on a security from extreme bearishness to bullishness.
In Monday’s trading session, five stocks saw top short covering. The stocks include Wipro, Biocon, Piramal Enterprises, Balrampur Chini Mills, and Syngene International.
Wipro, a leading global information technology company, experienced a 1.36% decrease in open interest (OI) on April 22, with a 2.31% increase in stock price.
Biocon, a biopharmaceutical company, had a decrease of 5.47% in OI and a 3.94% increase in stock price.
Piramal Enterprises, a diversified conglomerate, saw a 2.64% decrease in OI and a 0.22% increase in stock price.
Balrampur Chini Mills, a sugar company, had a 2.28% decrease in OI and a 3.32% increase in stock price.
Syngene International, a contract research organization, experienced a 0.57% decrease in OI and a 0.05% increase in stock price.
These changes in short covering and stock price indicate shifting sentiments towards these stocks in the market.
