Futures at a premium
The front-month future paying more than half a percent over cash, in a stock above its 50-day average.
The basis is the futures market's opinion of the cash price. A persistent premium means leveraged traders are paying a carry cost to be long, and they only do that willingly when they expect the move to continue. The trend filter matters here. A fat premium in a falling stock is stale hope; the same premium above a rising 50-day average is conviction with the trend at its back.
More derivatives:Long buildupShort buildupShort covering rallyLong unwindingOpen interest at a 3-month high
Price and delivery data from the eod2 dataset: National Stock Exchange of India end-of-day files, split- and bonus-adjusted, updated after each close. Not affiliated with or endorsed by NSE. PatternsRadar is a research tool. Nothing here is investment advice or a recommendation to buy or sell anything.