The increase in short interest for Reliance suggests that traders are becoming more bearish on the stock. However, the fact that it's below the peer average might mitigate the negative impact slightly. Short interest is a key indicator of market sentiment, and a significant rise can lead to increased selling pressure. Yet, the article also hints that high short interest can sometimes be bullish, indicating potential for a short squeeze, but this is not explicitly stated as a current factor for Reliance.