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Short Build Up

Position SHORT BUILD UP-INDEX OPTION

Options

Futures

Calls

Puts

Symbol
Strike Price
Prev OI
Curr. OI (%Chg)
LTP (%Chg)

27,850.00

16,705

70,330

(321.01%)

1.1

(-4.35%)

29,250.00

1,980

6,780

(242.42%)

12.65

(-0.39%)

27,150.00

3,61,400

11,33,860

(213.74%)

1.35

(-20.59%)

30,100.00

360

1,080

(200%)

2.55

(-42.7%)

29,600.00

5,280

15,480

(193.18%)

5.75

(-24.84%)

65,600.00

870

2,520

(189.66%)

3.35

(-23.86%)

26,750.00

3,44,045

9,63,755

(180.12%)

3

(-11.76%)

29,400.00

2,280

6,240

(173.68%)

8.75

(-11.62%)

27,450.00

65,910

1,71,600

(160.36%)

1.2

(-11.11%)

26,950.00

2,00,200

5,15,320

(157.4%)

2.05

(-19.61%)

29,350.00

1,020

2,580

(152.94%)

9.4

(-12.96%)

72,500.00

350

875

(150%)

42

(-8.79%)

14,150.00

52,800

1,26,720

(140%)

6.3

(-47.93%)

26,250.00

9,90,470

22,32,490

(125.4%)

15.6

(-3.41%)

27,800.00

1,26,685

2,78,785

(120.06%)

1.05

(-8.7%)

29,700.00

4,920

10,740

(118.29%)

5

(-25.37%)

26,900.00

10,50,205

22,39,900

(113.28%)

2.3

(-13.21%)

14,775.00

2,160

4,560

(111.11%)

0.75

(-48.28%)

29,300.00

15,600

32,760

(110%)

10.8

(-6.49%)

27,050.00

3,52,950

7,18,380

(103.54%)

1.7

(-15%)

13,900.00

4,99,800

10,06,320

(101.34%)

44

(-9.56%)

26,850.00

2,50,380

4,77,490

(90.71%)

2.55

(-12.07%)

29,200.00

11,580

21,780

(88.08%)

14.1

(-2.08%)

26,700.00

19,66,705

36,85,240

(87.38%)

3.25

(-9.72%)

28,050.00

1,62,305

3,01,080

(85.5%)

1

(-13.04%)

26,450.00

6,48,635

11,47,900

(76.97%)

6.95

(-4.79%)

29,900.00

2,580

4,560

(76.74%)

3.65

(-29.13%)

29,800.00

14,340

25,020

(74.48%)

3.8

(-36.13%)

13,875.00

33,240

57,480

(72.92%)

50.85

(-6.09%)

26,650.00

3,56,265

6,06,385

(70.21%)

3.75

(-9.64%)

15,100.00

2,760

4,680

(69.57%)

0.75

(-25%)

27,550.00

79,040

1,32,535

(67.68%)

1.25

(-7.41%)

14,550.00

27,360

44,760

(63.6%)

1.05

(-53.33%)

26,550.00

5,29,425

8,65,345

(63.45%)

5.05

(-6.48%)

27,900.00

1,68,220

2,73,130

(62.36%)

1.05

(-12.5%)

14,050.00

38,520

62,280

(61.68%)

14.7

(-30.33%)

13,850.00

85,200

1,35,720

(59.3%)

60

(-2.28%)

27,950.00

60,775

96,655

(59.04%)

1.05

(-12.5%)

65,200.00

7,470

11,850

(58.63%)

3.3

(-34%)

14,450.00

21,960

34,080

(55.19%)

1.35

(-57.81%)

14,475.00

6,120

9,120

(49.02%)

1.35

(-55.74%)

13,925.00

37,560

55,560

(47.92%)

36.55

(-13.18%)

14,425.00

8,520

12,600

(47.89%)

1.55

(-56.94%)

26,300.00

27,28,115

40,23,175

(47.47%)

12.7

(-0.39%)

27,750.00

54,860

80,665

(47.04%)

1.15

(-8%)

13,825.00

28,680

40,680

(41.84%)

68.1

(-2.51%)

29,550.00

600

840

(40%)

5.7

(-26.92%)

28,100.00

6,99,335

9,77,990

(39.85%)

1.1

(-4.35%)

26,400.00

26,48,425

36,97,590

(39.61%)

8.4

(-1.75%)

14,200.00

4,13,640

5,67,720

(37.25%)

4.65

(-50.79%)

27,250.00

3,12,650

4,22,630

(35.18%)

1.4

(-6.67%)

28,000.00

14,33,705

19,30,045

(34.62%)

1.05

(-8.7%)

63,200.00

35,370

46,800

(32.32%)

16.75

(-7.2%)

26,800.00

19,86,335

26,15,015

(31.65%)

2.7

(-12.9%)

14,225.00

6,960

8,880

(27.59%)

3.55

(-57.23%)

30,200.00

660

840

(27.27%)

3.2

(-30.43%)

26,600.00

16,81,485

20,95,015

(24.59%)

4.3

(-7.53%)

14,350.00

16,320

20,280

(24.26%)

1.95

(-56.67%)

65,100.00

9,270

11,460

(23.62%)

4.05

(-25.69%)

26,500.00

60,97,390

75,30,770

(23.51%)

6

(-6.25%)

64,600.00

5,220

6,420

(22.99%)

5.3

(-22.63%)

27,700.00

2,27,825

2,77,680

(21.88%)

1.15

(-11.54%)

13,975.00

45,240

54,960

(21.49%)

25.65

(-20.09%)

27,200.00

20,29,885

24,60,510

(21.21%)

1.3

(-18.75%)

27,100.00

22,68,240

27,15,245

(19.71%)

1.45

(-21.62%)

63,300.00

35,820

42,690

(19.18%)

15.5

(-0.64%)

14,725.00

1,560

1,800

(15.38%)

1

(-58.33%)

27,400.00

12,85,440

14,82,325

(15.32%)

1.25

(-7.41%)

27,000.00

96,23,380

1,10,36,935

(14.69%)

2.05

(-14.58%)

14,000.00

10,11,960

11,57,040

(14.34%)

21

(-24.73%)

27,500.00

38,77,445

44,08,170

(13.69%)

1.15

(-11.54%)

29,500.00

81,840

92,760

(13.34%)

6.5

(-21.21%)

14,325.00

7,440

8,400

(12.9%)

2.35

(-55.66%)

27,600.00

4,78,140

5,37,355

(12.38%)

1.15

(-11.54%)

13,950.00

90,720

1,01,640

(12.04%)

31.25

(-15.54%)

27,300.00

35,27,810

39,13,130

(10.92%)

1.2

(-14.29%)

14,575.00

4,800

5,280

(10%)

1.15

(-45.24%)

31,000.00

18,420

20,040

(8.79%)

1.4

(-6.67%)

15,000.00

4,01,280

4,33,080

(7.92%)

1.1

(-8.33%)

14,300.00

2,65,920

2,83,920

(6.77%)

2.55

(-57.85%)

63,400.00

27,960

29,790

(6.55%)

13.85

(-7.36%)

65,500.00

57,090

60,600

(6.15%)

3.35

(-35.58%)

30,300.00

2,400

2,520

(5%)

2.25

(-45.78%)

27,650.00

59,800

62,010

(3.7%)

1.2

(-7.69%)

63,900.00

25,740

26,550

(3.15%)

7.95

(-23.56%)

64,300.00

16,590

16,980

(2.35%)

6.1

(-25.61%)

14,525.00

6,240

6,360

(1.92%)

1.2

(-58.62%)

30,500.00

18,060

18,300

(1.33%)

1.9

(-9.52%)

64,700.00

14,040

14,220

(1.28%)

4.7

(-30.88%)

14,100.00

5,89,560

5,93,880

(0.73%)

10.15

(-36.96%)

Position SHORT BUILD UP-STOCKS OPTION

Options

Futures

Calls

Puts

Symbol
Strike Price
Prev OI
Curr. OI (%Chg)
LTP (%Chg)

26,000.00

50

18,950

(37,800%)

21.1

(-48.09%)

11,900.00

100

950

(850%)

23.8

(-20.67%)

1,550.00

8,000

50,000

(525%)

0.45

(-25%)

2,100.00

4,225

21,775

(415.38%)

1

(-9.09%)

13,700.00

4,800

24,350

(407.29%)

7.35

(-26.5%)

1,240.00

15,600

59,600

(282.05%)

131.7

(-22.46%)

1,480.00

36,600

1,38,600

(278.69%)

32.5

(-40.15%)

5,250.00

375

1,375

(266.67%)

174.25

(-6.14%)

3,050.00

22,925

81,025

(253.44%)

33.9

(-55.04%)

2,650.00

1,18,750

4,06,750

(242.53%)

28.5

(-9.24%)

2,950.00

14,525

49,175

(238.55%)

72

(-47.98%)

515.00

2,30,000

7,70,000

(234.78%)

3.3

(-50%)

437.50

65,000

2,15,800

(232%)

0.8

(-40.74%)

222.50

8,22,000

27,18,000

(230.66%)

0.69

(-65.33%)

484.00

16,000

52,000

(225%)

0.1

(-50%)

605.00

40,800

1,27,200

(211.76%)

9.25

(-16.29%)

1,280.00

1,82,925

5,00,850

(173.8%)

3.85

(-16.3%)

179.00

1,09,200

2,96,400

(171.43%)

0.83

(-10.75%)

204.00

1,20,000

3,09,000

(157.5%)

9.28

(-31.05%)

3,000.00

50,925

1,30,725

(156.7%)

49

(-53.11%)

2,680.00

4,000

10,200

(155%)

2.9

(-36.96%)

4,540.00

2,500

6,250

(150%)

2.2

(-56.86%)

90.00

1,41,750

3,51,000

(147.62%)

0.07

(-30%)

990.00

78,000

1,88,000

(141.03%)

1.55

(-8.82%)

7,700.00

1,22,250

2,81,875

(130.57%)

42.4

(-3.09%)

1,490.00

10,625

24,375

(129.41%)

0.35

(-22.22%)

275.00

12,58,575

28,37,250

(125.43%)

6.1

(-38.07%)

1,290.00

98,550

2,21,400

(124.66%)

2.35

(-24.19%)

455.00

2,32,700

5,16,100

(121.79%)

0.3

(-50%)

4,800.00

1,050

2,250

(114.29%)

264.8

(-33.44%)

4,500.00

700

1,500

(114.29%)

383.8

(-8.96%)

1,160.00

3,11,300

6,61,100

(112.37%)

25.15

(-29.25%)

1,420.00

18,150

38,500

(112.12%)

0.25

(-54.55%)

1,560.00

60,750

1,26,900

(108.89%)

11.1

(-24.23%)

1,290.00

2,41,875

4,98,750

(106.2%)

6.25

(-38.12%)

212.50

15,21,000

30,84,000

(102.76%)

3.52

(-47.62%)

210.00

14,01,000

28,14,000

(100.86%)

4.9

(-42.29%)

1,230.00

1,24,375

2,48,750

(100%)

9.9

(-3.88%)

2,260.00

2,14,900

4,14,050

(92.67%)

15.7

(-0.63%)

1,010.00

63,000

1,21,000

(92.06%)

0.9

(-10%)

1,170.00

2,49,700

4,75,750

(90.53%)

23.05

(-17.38%)

1,580.00

77,350

1,47,350

(90.5%)

5.75

(-53.06%)

1,110.00

39,600

75,350

(90.28%)

67.9

(-11.24%)

1,160.00

2,03,250

3,84,000

(88.93%)

5.2

(-57.2%)

207.50

2,13,000

4,02,000

(88.73%)

6.64

(-35.72%)

1,660.00

46,500

87,750

(88.71%)

1.3

(-3.7%)

360.00

25,400

47,625

(87.5%)

0.3

(-14.29%)

4,900.00

3,450

6,450

(86.96%)

185.15

(-36.31%)

163.00

8,64,000

16,13,250

(86.72%)

0.19

(-5%)

1,560.00

5,44,200

10,13,400

(86.22%)

5.35

(-60.52%)

11,900.00

35,350

65,600

(85.57%)

88.75

(-46.71%)

7,750.00

19,250

35,375

(83.77%)

27.35

(-13.59%)

1,130.00

3,600

6,600

(83.33%)

1.45

(-27.5%)

455.00

2,11,400

3,86,400

(82.78%)

5.9

(-39.18%)

2,920.00

32,700

59,400

(81.65%)

4.55

(-65.13%)

2,900.00

1,53,300

2,77,200

(80.82%)

6.75

(-63.81%)

1,380.00

11,69,200

20,98,400

(79.47%)

20.35

(-43.47%)

5,050.00

26,250

47,100

(79.43%)

91.2

(-45.5%)

520.00

11,18,750

20,05,000

(79.22%)

2.1

(-51.16%)

1,460.00

1,79,200

3,19,550

(78.32%)

22

(-42.63%)

525.00

1,08,750

1,92,500

(77.01%)

6.5

(-42.73%)

1,730.00

3,00,300

5,28,150

(75.87%)

8.2

(-4.65%)

525.00

4,40,000

7,73,750

(75.85%)

1.3

(-53.57%)

2,720.00

14,000

24,600

(75.71%)

42.5

(-31.23%)

2,740.00

46,600

81,800

(75.54%)

31.65

(-37.57%)

470.00

4,50,800

7,74,200

(71.74%)

1.8

(-55.56%)

810.00

5,250

9,000

(71.43%)

0.3

(-25%)

2,760.00

62,800

1,07,000

(70.38%)

23.3

(-44.46%)

2,980.00

37,200

63,000

(69.35%)

1.45

(-69.47%)

422.50

2,05,400

3,45,800

(68.35%)

3.05

(-18.67%)

6,300.00

6,000

10,100

(68.33%)

1.35

(-34.15%)

432.50

1,07,900

1,80,700

(67.47%)

1.2

(-35.14%)

770.00

57,500

96,025

(67%)

12.15

(-19.8%)

600.00

2,775

4,625

(66.67%)

40.45

(-3%)

1,140.00

1,27,050

2,11,200

(66.23%)

44

(-13.81%)

305.00

11,31,750

18,81,000

(66.2%)

2.3

(-25.81%)

1,440.00

72,400

1,20,000

(65.75%)

7.5

(-32.74%)

3,940.00

31,675

52,150

(64.64%)

19.1

(-32.63%)

168.00

5,95,350

9,79,650

(64.55%)

1.08

(-3.57%)

3,250.00

31,850

52,150

(63.74%)

7.4

(-54.74%)

307.50

7,40,025

11,90,475

(60.87%)

2.8

(-12.5%)

1,150.00

20,250

32,400

(60%)

0.7

(-36.36%)

2,360.00

64,400

1,02,200

(58.7%)

1.7

(-40.35%)

42,500.00

300

475

(58.33%)

6.6

(-26.67%)

1,270.00

43,125

68,125

(57.97%)

1.85

(-32.73%)

1,150.00

2,53,550

4,00,400

(57.92%)

35.25

(-18.02%)

1,190.00

1,60,600

2,53,550

(57.88%)

14.5

(-22.87%)

510.00

3,97,500

6,27,500

(57.86%)

5.35

(-43.39%)

2,680.00

45,000

70,800

(57.33%)

2.65

(-32.91%)

1,500.00

2,49,000

3,90,000

(56.63%)

21.05

(-48.09%)

5,000.00

2,300

3,600

(56.52%)

530.5

(-17.52%)

2,660.00

83,125

1,30,025

(56.42%)

61.35

(-30.36%)

2,680.00

1,27,400

1,99,150

(56.32%)

48.45

(-35.44%)

1,180.00

2,88,200

4,50,450

(56.3%)

18.45

(-22.32%)

450.00

2,71,600

4,24,200

(56.19%)

8.55

(-32.94%)

76.00

14,59,200

22,78,400

(56.14%)

1.1

(-32.1%)

1,740.00

4,23,500

6,59,050

(55.62%)

5.4

(-13.6%)

5,100.00

43,650

67,650

(54.98%)

66.75

(-52.24%)

440.00

5,05,000

7,80,000

(54.46%)

4.6

(-26.98%)

265.00

48,01,125

73,73,625

(53.58%)

2.8

(-28.21%)

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Premium

Discount

Script
Spot
Future
Premium(%)

NHPC

76.34

76.35

0.01%

NATIONALUM

344.05

344.10

0.01%

MARICO

795.95

796.15

0.02%

NIFTY

25,819.35

25,827.00

0.03%

BHARTIARTL

2,021.80

2,022.40

0.03%

What is a Short Build-Up?

Short Build Up is a market condition where open interest and trading volume of short positions increase while the price of the underlying asset goes down. This indicates that investors are turning bearish, expecting prices to fall even more. When traders are selling futures or options contracts, they expect to buy them back later at a lower price to profit from the difference. Hence, it means that more traders are entering short positions. Therefore, it heightens bearish sentiments in the market. For example, if the stock price falls by 3% whereas open interest increases by 10%, this might suggest a short build-up that indicates traders expect a continued trend of the stock's downward movement in value.

Awareness of this phenomenon is very important for the market participants because it appears to be an expression of the collective investor sentiment, which can hint towards the eventual trading opportunity. It can be a warning sign for long investors but gives opportunities to those looking to capitalize on the bearish trend. In general, it is only by understanding these short build-ups that traders can make the right decisions based on the prevailing market conditions and psychology of the investors.

Why Does It Happen?

Short build-ups happen due to several interrelated factors that reflect market dynamics and investor behavior:

  • 1. Negative Sentiment: Overall, bearish market sentiment on a stock or market segment serves as the trigger for selling short in response to a prognosis of a decline in stock prices. Unfavorable news on earnings, economic recession, or negative news concerning the stock are crucial factors.
  • 2. Hedging Strategies: A few investors who are holding long positions in an asset would like to enter short positions through futures or options in order to hedge against possible losses. This hedge creates a short build-up but does not signal pure bearishness.
  • 3. Speculative Trading: Traders may do short selling purely based on speculation as they feel an asset is overvalued and, therefore, has to correct itself. This speculative behavior further increases the short build-up as more and more traders enter the market by expecting a fall.
  • 4. Momentum Trading: When downward price momentum accelerates, fear can cause panic selling, which increases the short positions and intensifies the short build-ups.

These factors lead to short build-ups and reflect the overall broader market trends as well as investor psychology.

How Does It Help You?

Understanding short build-ups provides several advantages for traders and investors looking to navigate market conditions effectively:

  • Informed Decision-Making: Recognizing a short build-up allows investors to adjust their strategies accordingly. They may decide to enter short positions themselves or hedge existing long positions against potential losses.
  • Risk Management: By identifying strong bearish signals through significant short build-ups, traders can implement risk management strategies to mitigate potential losses. This could involve setting stop-loss orders or diversifying their portfolios.
  • Market Insight: Analyzing short build-ups enhances an investor's ability to interpret broader market dynamics and trends. It provides insight into market sentiment and potential future movements, enabling more strategic trading decisions.
  • Opportunity Identification: Traders can capitalize on price declines associated with short build-ups by timing their entries and exits effectively, potentially leading to profitable trades during bearish phases.

Recognizing and understanding short build-ups equips traders with valuable insights that can enhance their trading strategies and overall market engagement, ultimately improving their chances of success in volatile markets.

FAQs

What is a short buildup?

downArrow

A short buildup occurs when more investors enter short positions, anticipating a decline in asset prices. This situation often arises due to negative news or overvaluation, leading traders to sell futures or options contracts to profit from expected price drops.

What is the buildup rate?

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The buildup rate is a method used to determine an investment's capitalization rate by summing various risk factors and adding them to a risk-free interest rate. It helps calculate the expected return on an investment considering its specific risks and market conditions.

What happens when there is a short build-up?

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When there is a short build-up, the price of the underlying asset typically declines as more investors sell short. Increased open interest indicates that bearish sentiment is prevalent, which can lead to further price drops if the trend continues.

What is the difference between long unwinding and short buildup?

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Long unwinding involves selling existing long positions to realize profits or minimize losses, increasing supply and potentially lowering prices. In contrast, short buildup refers to increasing short positions, anticipating further price declines due to negative market sentiment.

How to identify short build-up in the option chain?

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To identify a short build-up in an option chain, look for increasing open interest alongside declining prices of the underlying asset. A significant rise in put option volume relative to call options can also indicate bearish sentiment and potential short positions being established.

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