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Position SHORT BUILD UP-INDEX OPTION

Options

Futures

Calls

Puts

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

23,950.00

88,855

26,16,640

(2,844.84%)

172.4

(-42.81%)

24,050.00

2,27,955

49,78,350

(2,083.92%)

124.7

(-46.49%)

23,850.00

41,405

2,74,755

(563.58%)

234.8

(-37.9%)

26,250.00

1,020

6,660

(552.94%)

189.15

(-61.86%)

26,200.00

2,700

17,160

(535.56%)

212.6

(-57.54%)

57,100.00

22,110

1,34,970

(510.45%)

499.35

(-51.59%)

57,300.00

49,680

2,77,260

(458.09%)

392.6

(-56.08%)

24,950.00

7,92,415

43,08,460

(443.71%)

4.7

(-21.01%)

14,675.00

20,760

99,600

(379.77%)

86

(-60.94%)

26,850.00

1,740

8,220

(372.41%)

32.4

(-72.52%)

57,200.00

39,390

1,84,980

(369.61%)

444.35

(-54.12%)

14,725.00

19,200

78,000

(306.25%)

66.6

(-63.82%)

26,750.00

2,760

10,560

(282.61%)

43.95

(-71.29%)

26,350.00

1,080

4,080

(277.78%)

152.25

(-60.67%)

26,300.00

6,600

23,820

(260.91%)

173.65

(-57.52%)

57,400.00

76,050

2,58,450

(239.84%)

343.8

(-58.35%)

63,600.00

1,410

4,410

(212.77%)

2.55

(-19.05%)

24,150.00

13,40,235

41,88,925

(212.55%)

86.5

(-50.23%)

23,750.00

39,585

1,23,630

(212.32%)

301.9

(-34.66%)

23,650.00

15,015

45,695

(204.33%)

379.35

(-31.16%)

27,900.00

120

360

(200%)

4.1

(-26.13%)

23,900.00

5,76,095

17,12,620

(197.28%)

200.75

(-40.73%)

14,950.00

34,200

1,01,040

(195.44%)

16.45

(-75.93%)

24,000.00

47,15,425

1,38,81,465

(194.38%)

147.95

(-44.43%)

14,625.00

20,040

56,160

(180.24%)

107.65

(-58.44%)

26,500.00

36,240

98,460

(171.69%)

98.5

(-64.56%)

26,000.00

1,260

3,420

(171.43%)

339.2

(-47%)

57,500.00

3,98,100

10,43,160

(162.03%)

306

(-59.49%)

24,100.00

36,73,410

94,05,370

(156.04%)

104.45

(-48.27%)

14,650.00

62,160

1,56,240

(151.35%)

98.05

(-58.94%)

14,775.00

25,920

64,800

(150%)

50.3

(-67.36%)

23,550.00

16,055

37,115

(131.17%)

468.1

(-27.07%)

72,600.00

100

225

(125%)

365.55

(-40.56%)

71,500.00

400

875

(118.75%)

1,120

(-20%)

72,500.00

1,250

2,700

(116%)

442

(-36.86%)

26,700.00

16,380

34,920

(113.19%)

50.35

(-71.1%)

57,600.00

1,18,020

2,50,410

(112.18%)

266

(-61.5%)

25,250.00

4,91,465

10,30,835

(109.75%)

2.6

(-1.89%)

26,400.00

17,760

36,360

(104.73%)

133

(-61.22%)

26,100.00

2,580

5,280

(104.65%)

274.55

(-52.43%)

22,800.00

19,695

40,235

(104.29%)

1,175.25

(-14.56%)

72,700.00

25

50

(100%)

413.25

(-31.13%)

23,800.00

4,82,560

9,55,240

(97.95%)

265.55

(-36.93%)

26,450.00

2,820

5,580

(97.87%)

114.6

(-63.94%)

23,450.00

14,690

28,340

(92.92%)

558.65

(-24.28%)

25,200.00

32,65,405

62,11,725

(90.23%)

2.85

(-5%)

14,325.00

1,680

3,120

(85.71%)

325.75

(-38.28%)

64,100.00

180

330

(83.33%)

1.95

(-23.53%)

14,600.00

1,69,080

3,08,040

(82.19%)

122.3

(-55.83%)

26,950.00

2,160

3,900

(80.56%)

25.9

(-70.7%)

14,825.00

46,200

83,160

(80%)

37.75

(-69.88%)

24,550.00

11,20,925

20,11,230

(79.43%)

15.95

(-53.77%)

24,650.00

14,63,540

25,78,615

(76.19%)

10.7

(-49.41%)

61,300.00

12,060

20,250

(67.91%)

5.55

(-13.95%)

14,850.00

51,840

86,280

(66.44%)

32.85

(-70.67%)

15,025.00

8,160

13,560

(66.18%)

11

(-74.97%)

14,750.00

75,840

1,25,160

(65.03%)

58.8

(-65.39%)

56,900.00

37,800

60,120

(59.05%)

605.35

(-49.76%)

23,700.00

1,65,945

2,63,900

(59.03%)

338.8

(-33.08%)

26,800.00

26,160

41,580

(58.94%)

39.5

(-70.18%)

25,050.00

7,71,095

12,17,840

(57.94%)

3.75

(-14.77%)

27,300.00

12,900

20,220

(56.74%)

12.4

(-55.56%)

14,700.00

4,60,080

7,20,480

(56.6%)

74.2

(-63.55%)

57,700.00

2,20,290

3,40,290

(54.47%)

235.65

(-62.41%)

24,450.00

15,82,685

24,15,465

(52.62%)

24.5

(-55.62%)

26,550.00

5,040

7,620

(51.19%)

86.3

(-65.34%)

24,250.00

23,91,155

35,51,340

(48.52%)

57.55

(-53.87%)

25,150.00

7,48,020

10,98,565

(46.86%)

3.25

(-5.8%)

73,500.00

1,050

1,525

(45.24%)

155

(-48.07%)

26,650.00

2,820

4,080

(44.68%)

63.2

(-68.09%)

14,875.00

21,600

31,080

(43.89%)

27.55

(-72.45%)

24,350.00

17,86,525

25,53,265

(42.92%)

38.05

(-54.94%)

62,200.00

3,750

5,280

(40.8%)

3.05

(-24.69%)

60,600.00

35,340

49,380

(39.73%)

7.2

(-30.77%)

14,575.00

14,760

20,520

(39.02%)

132.55

(-55.36%)

56,600.00

16,080

22,290

(38.62%)

802.95

(-45.23%)

24,200.00

1,12,91,410

1,55,57,815

(37.78%)

70.2

(-52.47%)

58,800.00

1,39,560

1,92,000

(37.58%)

45.65

(-70.83%)

24,750.00

13,92,560

18,97,155

(36.24%)

7.4

(-43.73%)

57,000.00

4,18,320

5,69,460

(36.13%)

550

(-51.29%)

24,300.00

57,66,605

77,18,555

(33.85%)

47

(-54.57%)

77,900.00

225

300

(33.33%)

30

(-15.49%)

56,200.00

3,090

4,110

(33.01%)

1,122.45

(-37.96%)

25,000.00

1,00,85,790

1,33,10,310

(31.97%)

4.2

(-20%)

63,400.00

1,920

2,520

(31.25%)

2.25

(-13.46%)

58,300.00

2,85,960

3,73,590

(30.64%)

100.45

(-68.51%)

24,400.00

40,92,010

53,10,760

(29.78%)

30.4

(-56.07%)

62,600.00

2,220

2,880

(29.73%)

2.9

(-21.62%)

57,800.00

3,02,880

3,85,680

(27.34%)

205.15

(-63.76%)

24,850.00

8,81,660

11,18,000

(26.81%)

5.55

(-34.32%)

56,100.00

1,590

2,010

(26.42%)

1,185.5

(-38.64%)

24,500.00

79,33,445

99,36,615

(25.25%)

19.95

(-54.66%)

56,500.00

48,180

60,270

(25.09%)

882

(-43.11%)

56,300.00

3,360

4,200

(25%)

1,082.9

(-37.72%)

24,700.00

44,16,425

54,96,465

(24.46%)

8.75

(-47.76%)

23,250.00

2,925

3,640

(24.44%)

753.95

(-18.75%)

23,600.00

2,00,005

2,46,545

(23.27%)

420.5

(-29.45%)

75,000.00

2,000

2,450

(22.5%)

48

(-34.29%)

16,300.00

1,680

2,040

(21.43%)

0.7

(-26.32%)

26,900.00

14,100

17,100

(21.28%)

28.75

(-71.34%)

Position SHORT BUILD UP-STOCKS OPTION

Options

Futures

Calls

Puts

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

180.00

72,000

1,00,22,400

(13,820%)

2.79

(-92.25%)

190.00

5,86,800

85,53,600

(1,357.67%)

1.09

(-94.1%)

3,300.00

9,000

1,31,000

(1,355.56%)

1.8

(-57.65%)

2,850.00

3,675

52,675

(1,333.33%)

4.2

(-20.75%)

3,150.00

4,200

52,800

(1,157.14%)

3.6

(-69.36%)

1,180.00

32,500

3,45,000

(961.54%)

22.75

(-44.78%)

2,600.00

8,225

80,675

(880.85%)

109.35

(-17.13%)

107.00

10,850

81,375

(650%)

0.02

(-33.33%)

615.00

69,875

4,99,875

(615.38%)

0.7

(-53.33%)

315.00

95,000

6,20,000

(552.63%)

4.55

(-56.87%)

735.00

58,500

3,32,800

(468.89%)

21.3

(-28.16%)

2,250.00

14,575

77,000

(428.3%)

7.65

(-37.8%)

755.00

3,72,450

19,29,850

(418.15%)

8.6

(-40.28%)

2,840.00

13,650

67,550

(394.87%)

4.5

(-13.46%)

1,270.00

55,825

2,55,925

(358.44%)

25.5

(-47.53%)

2,860.00

22,400

1,02,200

(356.25%)

38.6

(-67.13%)

745.00

50,700

2,20,350

(334.62%)

14.15

(-33.57%)

1,060.00

83,200

3,50,350

(321.09%)

6.25

(-61.89%)

77.50

1,79,200

7,48,800

(317.86%)

1

(-59.18%)

1,240.00

2,26,875

9,06,250

(299.45%)

12.35

(-55.97%)

1,160.00

13,125

51,875

(295.24%)

33.35

(-40.45%)

435.00

1,05,300

3,92,850

(273.08%)

0.45

(-55%)

555.00

2,07,900

7,38,100

(255.03%)

5.55

(-46.89%)

11,300.00

8,800

30,700

(248.86%)

221.05

(-62.93%)

2,420.00

23,375

81,175

(247.27%)

26

(-71.66%)

2,300.00

22,550

76,450

(239.02%)

47

(-62.2%)

1,200.00

2,55,625

8,27,500

(223.72%)

14

(-51.47%)

980.00

39,000

1,25,000

(220.51%)

19.5

(-42.73%)

2,950.00

67,400

2,12,400

(215.13%)

17.55

(-72.01%)

1,220.00

59,375

1,85,625

(212.63%)

23.5

(-47.66%)

2,720.00

1,125

3,375

(200%)

0.6

(-40%)

11,000.00

33,500

1,00,500

(200%)

321.35

(-60.49%)

11,200.00

19,600

58,800

(200%)

245

(-62.88%)

17,500.00

3,825

11,225

(193.46%)

374.8

(-25.49%)

1,070.00

1,79,400

5,21,950

(190.94%)

4.9

(-61.72%)

2,900.00

2,20,600

6,40,600

(190.39%)

26.55

(-70.12%)

2,350.00

10,725

31,075

(189.74%)

2.6

(-44.68%)

7,950.00

19,600

54,500

(178.06%)

14

(-47.07%)

1,560.00

27,950

77,350

(176.74%)

41.2

(-38.37%)

1,460.00

16,200

44,400

(174.07%)

36.15

(-62.79%)

10,600.00

2,400

6,500

(170.83%)

515

(-52.82%)

1,740.00

35,625

96,250

(170.18%)

24.65

(-46.06%)

1,420.00

1,07,950

2,86,025

(164.96%)

25.25

(-24.63%)

580.00

4,18,950

11,02,950

(163.27%)

7.9

(-74.76%)

1,880.00

33,800

88,400

(161.54%)

26.05

(-17.43%)

1,320.00

67,500

1,71,000

(153.33%)

13.2

(-72.7%)

1,510.00

69,000

1,72,800

(150.43%)

16.9

(-72.68%)

2,440.00

54,825

1,37,275

(150.39%)

18.4

(-76.8%)

540.00

1,35,000

3,37,000

(149.63%)

5.45

(-58.4%)

2,650.00

14,350

35,350

(146.34%)

72.8

(-20.35%)

2,950.00

12,800

31,400

(145.31%)

29.55

(-23.35%)

310.00

85,000

2,05,000

(141.18%)

6.9

(-52.08%)

3,000.00

2,70,400

6,50,400

(140.53%)

11.05

(-74.24%)

2,920.00

45,600

1,07,800

(136.4%)

21.95

(-72%)

2,388.00

14,025

33,000

(135.29%)

18.6

(-67.6%)

2,820.00

46,725

1,08,850

(132.96%)

6.2

(-3.88%)

2,880.00

49,200

1,13,800

(131.3%)

32.5

(-68.52%)

365.00

4,73,075

10,92,200

(130.87%)

2.45

(-71.01%)

2,358.00

6,875

15,675

(128%)

25.2

(-68.75%)

800.00

2,11,925

4,80,200

(126.59%)

1.65

(-15.38%)

1,480.00

10,450

23,650

(126.32%)

58.2

(-43.5%)

242.50

8,600

19,350

(125%)

10.7

(-23.84%)

1,380.00

44,400

99,600

(124.32%)

13.85

(-62.21%)

465.00

51,875

1,16,200

(124%)

8.8

(-62.55%)

7,900.00

11,000

24,300

(120.91%)

3.4

(-11.69%)

11,500.00

69,800

1,52,000

(117.77%)

170

(-64.57%)

1,540.00

1,64,450

3,58,050

(117.73%)

19.05

(-61.94%)

2,850.00

50,600

1,10,000

(117.39%)

42.55

(-65.78%)

1,490.00

62,400

1,35,000

(116.35%)

22.5

(-69.88%)

200.00

27,72,000

59,58,000

(114.94%)

0.46

(-96.23%)

1,520.00

55,550

1,19,350

(114.85%)

28.9

(-57.12%)

1,160.00

55,625

1,19,375

(114.61%)

17.8

(-42.02%)

590.00

4,10,650

8,75,050

(113.09%)

2.05

(-55.91%)

1,480.00

69,000

1,47,000

(113.04%)

27.45

(-66.65%)

3,250.00

6,600

14,000

(112.12%)

2.1

(-60.38%)

4,650.00

75,000

1,58,250

(111%)

25.5

(-46.32%)

12,200.00

26,600

55,400

(108.27%)

55.1

(-72.71%)

5,150.00

68,550

1,42,500

(107.88%)

97.8

(-50.9%)

610.00

4,68,350

9,67,100

(106.49%)

1.5

(-87.07%)

940.00

36,425

75,175

(106.38%)

26.2

(-43.9%)

590.00

2,82,150

5,73,800

(103.37%)

4.3

(-82.23%)

620.00

1,88,125

3,79,475

(101.71%)

0.6

(-40%)

11,400.00

20,300

40,700

(100.49%)

190

(-64.79%)

625.00

63,425

1,26,850

(100%)

0.45

(-40%)

1,160.00

1,81,500

3,62,000

(99.45%)

2.05

(-65.25%)

545.00

80,000

1,59,000

(98.75%)

3.4

(-65.31%)

255.00

5,18,300

10,29,500

(98.63%)

0.32

(-11.11%)

5,050.00

1,44,300

2,85,000

(97.51%)

21.2

(-50.53%)

162.50

4,74,700

9,35,300

(97.03%)

2.69

(-37.44%)

1,170.00

1,20,625

2,36,875

(96.37%)

28.15

(-41.35%)

1,410.00

48,025

93,925

(95.58%)

29.2

(-25.89%)

4,750.00

62,100

1,20,750

(94.44%)

9

(-60.44%)

480.00

6,03,825

11,70,300

(93.81%)

3.3

(-73.49%)

2,980.00

29,800

57,400

(92.62%)

13

(-74%)

3,300.00

6,875

13,125

(90.91%)

123.55

(-26.39%)

350.00

12,38,325

23,60,125

(90.59%)

0.2

(-55.56%)

330.00

19,52,125

37,00,550

(89.57%)

0.5

(-28.57%)

3,040.00

42,200

79,600

(88.63%)

7.7

(-74.12%)

750.00

12,20,700

23,01,000

(88.5%)

11

(-37.5%)

1,140.00

32,500

61,250

(88.46%)

26.2

(-33.5%)

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Premium

Discount

Script
Spot
Future
Premium(%)

PNB

110.73

110.74

0.00%

CGPOWER

912.85

913.00

0.01%

INFY

1,052.10

1,052.30

0.01%

BANKBARODA

245.75

245.80

0.02%

IDFCFIRSTB

80.72

80.74

0.02%

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?

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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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