In Tuesday’s trading session, five stocks experienced a fresh long buildup. A stock is considered to have a long buildup when its stock prices and open interest increase simultaneously. The reliability of this signal is enhanced if there is also an increase in trading volume. Hindustan Unilever’s stock price rose by 5.23% with a 0.9% increase in open interest. Britannia’s price surged by 2.73% with a 12.35% increase in open interest. Nestle India witnessed a 2.04% rise in stock price and a 0.2% increase in open interest. ITC saw a stock rise of 1.12% and an increase of 1% in open interest. Bajaj Finance’s stock price gained 0.65% with a 0.73% increase in open interest.

Traders can make better decisions by considering additional factors. If the fresh long buildup occurs when a stock is close to its 52-week high, the probability of it attempting to break its previous 52-week high increases. Additionally, if this long buildup is accompanied by a bullish crossover, where the stock price crosses its 20, 50, or 100-day moving average during the upward movement, it further confirms the buildup. Traders should also check for any extraordinary buildup of long positions in out-of-money call options, particularly far-off-the-money call options. This could indicate the involvement of informed traders using options.

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