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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)

27,250.00

71,370

5,22,275

(631.79%)

2.15

(-2.27%)

27,450.00

1,03,285

6,03,980

(484.77%)

1.5

(-9.09%)

26,150.00

9,45,035

37,20,405

(293.68%)

48.45

(-19.92%)

27,350.00

1,84,405

7,16,950

(288.79%)

1.65

(-8.33%)

27,050.00

1,34,615

5,17,465

(284.4%)

3.1

(-3.13%)

26,250.00

8,54,620

30,85,095

(260.99%)

29.05

(-21.49%)

26,050.00

11,45,560

35,85,010

(212.95%)

81.5

(-14.79%)

26,450.00

8,53,190

25,62,625

(200.36%)

12.55

(-12.24%)

26,750.00

4,08,395

10,90,830

(167.1%)

5.45

(-2.68%)

27,150.00

1,53,985

3,84,410

(149.64%)

2.65

(-1.85%)

25,950.00

18,60,820

45,21,985

(143.01%)

128.5

(-9.98%)

27,550.00

3,86,945

9,13,575

(136.1%)

1.4

(-3.45%)

26,650.00

4,25,750

9,98,465

(134.52%)

6.85

(-4.86%)

26,950.00

1,82,000

4,24,060

(133%)

3.75

(-2.6%)

26,900.00

12,88,755

29,97,475

(132.59%)

4

(-2.44%)

26,350.00

8,48,835

19,25,105

(126.79%)

18.4

(-18.76%)

27,300.00

14,19,210

31,62,835

(122.86%)

1.75

(-7.89%)

27,400.00

10,39,155

22,13,445

(113%)

1.55

(-6.06%)

26,000.00

58,81,330

1,18,85,835

(102.09%)

102.3

(-13.05%)

26,100.00

32,12,300

59,02,780

(83.76%)

63.65

(-16.63%)

26,700.00

13,49,270

24,53,165

(81.81%)

6

(-4.76%)

26,550.00

6,64,950

11,95,415

(79.78%)

8.95

(-9.6%)

26,800.00

15,78,720

26,18,655

(65.87%)

4.8

(-4.95%)

27,100.00

11,11,110

18,26,565

(64.39%)

2.65

(-7.02%)

25,900.00

25,13,225

40,90,775

(62.77%)

157.75

(-7.23%)

26,400.00

17,55,910

28,35,235

(61.47%)

14.85

(-17.27%)

27,000.00

59,29,105

95,55,910

(61.17%)

3.4

(-4.23%)

26,600.00

16,04,070

25,70,100

(60.22%)

7.75

(-7.19%)

26,200.00

35,11,235

54,51,940

(55.27%)

37.9

(-19.28%)

26,850.00

4,12,360

5,97,610

(44.92%)

4.45

(-4.3%)

26,500.00

40,01,270

55,01,990

(37.51%)

10.7

(-11.93%)

26,300.00

33,12,855

44,07,195

(33.03%)

22.55

(-21.02%)

25,850.00

6,88,480

8,39,280

(21.9%)

190.05

(-5.89%)

25,750.00

2,42,970

2,91,395

(19.93%)

263.95

(-2.64%)

25,800.00

15,17,945

17,78,530

(17.17%)

225.5

(-4.49%)

25,550.00

61,360

70,330

(14.62%)

438.75

(-0.09%)

25,700.00

7,02,000

7,30,730

(4.09%)

304.75

(-1.92%)

25,600.00

5,11,810

5,29,425

(3.44%)

393

(-0.2%)

Position SHORT BUILD UP-STOCKS OPTION

Options

Futures

Calls

Puts

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

340.00

5,700

1,93,800

(3,300%)

0.85

(-5.56%)

1,090.00

600

15,600

(2,500%)

3.9

(-17.89%)

750.00

1,700

26,350

(1,450%)

1.8

(-5.26%)

2,000.00

6,000

76,800

(1,180%)

2.75

(-16.67%)

8,500.00

3,250

40,500

(1,146.15%)

4.25

(-16.67%)

6,950.00

2,100

23,800

(1,033.33%)

12.65

(-12.76%)

145.00

3,19,800

34,68,600

(984.62%)

0.41

(-30.51%)

3,060.00

1,200

10,800

(800%)

3.55

(-18.39%)

870.00

9,775

85,100

(770.59%)

6.55

(-62.36%)

585.00

20,000

1,72,500

(762.5%)

3.6

(-54.14%)

1,290.00

1,250

10,000

(700%)

2.9

(-10.77%)

3,120.00

300

2,100

(600%)

2.35

(-22.95%)

8,050.00

3,625

23,000

(534.48%)

15.1

(-3.21%)

123.00

13,800

79,350

(475%)

4.71

(-33.38%)

550.00

6,53,750

34,06,250

(421.03%)

12.2

(-40.78%)

6,350.00

13,250

68,250

(415.09%)

22

(-17.76%)

1,520.00

6,650

33,950

(410.53%)

52.55

(-25.93%)

1,640.00

11,900

59,925

(403.57%)

2.1

(-73.75%)

139.00

92,250

4,55,100

(393.33%)

1.02

(-19.05%)

1,470.00

26,350

1,29,200

(390.32%)

16.2

(-67.73%)

8,300.00

6,750

32,000

(374.07%)

5.75

(-25.81%)

126.00

1,79,400

8,41,800

(369.23%)

3.14

(-40.75%)

265.00

10,89,375

50,76,750

(366.02%)

5

(-65.4%)

570.00

3,91,250

18,12,500

(363.26%)

6

(-49.37%)

260.00

19,97,625

90,64,125

(353.75%)

7.25

(-60.27%)

565.00

1,45,000

5,82,500

(301.72%)

7.2

(-47.64%)

113.00

3,450

13,800

(300%)

11.92

(-28.41%)

1,420.00

10,800

40,000

(270.37%)

68.05

(-25.87%)

1,410.00

21,250

74,375

(250%)

37.1

(-59.85%)

595.00

42,500

1,47,500

(247.06%)

2.55

(-54.87%)

361.00

1,21,600

4,17,600

(243.42%)

0.3

(-14.29%)

4,360.00

1,11,125

3,74,675

(237.17%)

39.4

(-57.06%)

1,430.00

29,325

98,175

(234.78%)

28.4

(-61.15%)

146.00

9,04,500

29,16,000

(222.39%)

3.47

(-19.68%)

6,650.00

1,750

5,625

(221.43%)

5.1

(-45.45%)

1,700.00

40,375

1,29,200

(220%)

1.15

(-73.26%)

1,500.00

20,650

65,450

(216.95%)

66.75

(-24.66%)

1,740.00

72,000

2,22,400

(208.89%)

47.25

(-13.62%)

815.00

18,000

55,200

(206.67%)

0.8

(-11.11%)

7,200.00

10,300

31,400

(204.85%)

4.9

(-5.77%)

560.00

6,57,500

19,87,500

(202.28%)

8.7

(-44.59%)

134.00

8,24,100

24,72,300

(200%)

2.03

(-15.77%)

5,300.00

25,800

77,300

(199.61%)

109.05

(-43.44%)

372.50

13,72,500

40,39,500

(194.32%)

2.2

(-10.2%)

575.00

1,01,250

2,97,500

(193.83%)

5.1

(-51.2%)

5,700.00

28,500

80,800

(183.51%)

166

(-35.88%)

2,120.00

1,950

5,525

(183.33%)

0.45

(-57.14%)

1,480.00

3,90,000

10,90,000

(179.49%)

30.6

(-34.75%)

610.00

1,32,500

3,68,750

(178.3%)

1.6

(-54.93%)

4,340.00

1,40,350

3,87,800

(176.31%)

46

(-53.39%)

3,140.00

1,000

2,750

(175%)

5.6

(-54.1%)

5,500.00

13,950

37,800

(170.97%)

143.6

(-35.91%)

6,450.00

8,000

21,625

(170.31%)

12.7

(-31.54%)

1,420.00

52,275

1,38,125

(164.23%)

32.1

(-59.82%)

2,920.00

74,725

1,97,400

(164.17%)

63.15

(-38.33%)

2,420.00

1,50,625

3,91,250

(159.75%)

78.25

(-37.35%)

790.00

31,050

80,500

(159.26%)

26.75

(-48.9%)

1,540.00

38,500

99,750

(159.09%)

40.25

(-30.06%)

1,460.00

53,975

1,37,275

(154.33%)

18.2

(-67.64%)

222.50

9,70,000

24,45,000

(152.06%)

1.28

(-36.63%)

1,440.00

47,175

1,18,575

(151.35%)

24.7

(-62.69%)

4,520.00

1,500

3,750

(150%)

6.2

(-10.14%)

4,320.00

1,36,675

3,38,275

(147.5%)

52

(-51.76%)

780.00

36,800

90,275

(145.31%)

31.5

(-46.25%)

2,380.00

1,45,625

3,53,125

(142.49%)

95.5

(-36.23%)

215.00

47,90,000

1,16,05,000

(142.28%)

2.42

(-34.95%)

3,750.00

2,92,200

7,05,000

(141.27%)

54

(-1.28%)

347.50

54,600

1,31,600

(141.03%)

12.3

(-11.83%)

5,850.00

21,450

51,150

(138.46%)

35.35

(-43.44%)

2,340.00

8,500

20,250

(138.24%)

79.7

(-2.33%)

8,100.00

9,000

21,250

(136.11%)

11.9

(-9.16%)

230.00

36,50,000

85,70,000

(134.79%)

0.7

(-38.05%)

5,550.00

12,300

28,650

(132.93%)

119

(-38.93%)

148.00

4,05,900

9,40,950

(131.82%)

0.27

(-35.71%)

320.00

1,00,000

2,31,250

(131.25%)

0.16

(-60%)

262.50

6,37,875

14,72,625

(130.86%)

6.05

(-64.2%)

1,480.00

1,33,025

3,02,175

(127.16%)

13.75

(-70.14%)

1,520.00

48,375

1,09,875

(127.13%)

44.65

(-31.52%)

1,390.00

14,875

33,575

(125.71%)

47.5

(-53.59%)

4,420.00

65,975

1,48,050

(124.4%)

26.15

(-63.63%)

1,450.00

79,900

1,75,525

(119.68%)

21.4

(-64.86%)

6,400.00

48,625

1,06,375

(118.77%)

17.75

(-20.58%)

272.50

5,35,500

11,60,250

(116.67%)

2.7

(-71.28%)

4,380.00

59,675

1,28,975

(116.13%)

35.05

(-58.55%)

1,100.00

28,500

61,500

(115.79%)

82

(-18.16%)

6,300.00

55,625

1,19,750

(115.28%)

28.85

(-12.04%)

365.00

7,81,200

16,80,200

(115.08%)

2.75

(-48.11%)

480.00

2,85,600

6,10,400

(113.73%)

10.9

(-41.55%)

830.00

86,825

1,84,575

(112.58%)

13.35

(-56.94%)

580.00

6,13,750

13,00,000

(111.81%)

4.2

(-52.27%)

2,060.00

11,050

23,400

(111.76%)

1.55

(-13.89%)

114.00

8,11,750

17,00,000

(109.42%)

3.2

(-21.95%)

710.00

1,08,500

2,25,750

(108.06%)

1.45

(-19.44%)

345.00

3,78,200

7,84,300

(107.38%)

9.05

(-40.07%)

1,120.00

38,000

77,500

(103.95%)

38.35

(-27.09%)

4,650.00

9,625

19,600

(103.64%)

91.95

(-9.81%)

270.00

38,22,000

76,86,000

(101.1%)

3.3

(-69.72%)

275.00

26,69,625

53,65,500

(100.98%)

2.25

(-71.52%)

225.00

31,25,000

62,55,000

(100.16%)

1.01

(-37.27%)

6,900.00

1,875

3,750

(100%)

1

(-51.22%)

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Premium

Discount

Script
Spot
Future
Premium(%)

INFY

1,471.90

1,472.00

0.00%

ULTRACEMCO

12,969.00

12,970.00

0.00%

POLYCAB

7,814.00

7,815.00

0.01%

CHOLAFIN

1,723.00

1,723.30

0.01%

CAMS

747.10

747.25

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?

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?

downArrow

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?

downArrow

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?

downArrow

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?

downArrow

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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