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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)

15,125.00

3,360

15,600

(364.29%)

1.85

(-45.59%)

15,075.00

2,280

8,280

(263.16%)

2.45

(-38.75%)

65,500.00

6,660

21,090

(216.67%)

0.8

(-30.43%)

25,350.00

2,520

7,740

(207.14%)

189.6

(-33.31%)

23,850.00

7,97,485

23,23,945

(191.41%)

84

(-28.96%)

14,475.00

19,080

51,720

(171.07%)

74.25

(-29.29%)

23,750.00

10,29,470

27,66,335

(168.71%)

119.4

(-25.37%)

15,175.00

5,280

14,160

(168.18%)

1.7

(-43.33%)

14,450.00

23,760

62,640

(163.64%)

84.85

(-26.15%)

14,575.00

12,240

30,840

(151.96%)

46.7

(-31.58%)

24,250.00

8,60,080

21,24,460

(147.01%)

16.8

(-35.38%)

15,300.00

1,46,280

3,53,640

(141.76%)

0.7

(-54.84%)

14,650.00

35,760

84,600

(136.58%)

30.65

(-32.71%)

27,100.00

57,915

1,34,940

(133%)

0.45

(-18.18%)

23,800.00

36,96,550

85,89,620

(132.37%)

100.05

(-27.58%)

24,650.00

7,90,400

17,88,865

(126.32%)

4.6

(-8%)

25,700.00

5,460

12,240

(124.18%)

79.25

(-41.62%)

15,275.00

8,400

18,480

(120%)

0.65

(-67.5%)

25,600.00

6,120

13,260

(116.67%)

105.35

(-37.46%)

23,950.00

7,25,140

14,82,910

(104.5%)

57.65

(-31.86%)

24,150.00

9,38,275

18,81,620

(100.54%)

25.4

(-35.29%)

14,775.00

7,200

14,160

(96.67%)

15.2

(-36%)

24,700.00

29,79,470

57,37,355

(92.56%)

4.05

(-2.41%)

53,900.00

81,660

1,53,900

(88.46%)

334.5

(-31.62%)

27,250.00

1,35,070

2,47,000

(82.87%)

0.55

(-8.33%)

27,400.00

2,040

3,720

(82.35%)

1.25

(-60.32%)

27,150.00

42,575

77,480

(81.98%)

0.45

(-25%)

53,800.00

1,22,400

2,18,490

(78.5%)

373.1

(-31.15%)

14,350.00

42,600

75,720

(77.75%)

132.05

(-19.82%)

63,600.00

4,440

7,890

(77.7%)

1.2

(-27.27%)

14,425.00

18,720

33,120

(76.92%)

95.55

(-24.65%)

25,550.00

2,580

4,500

(74.42%)

113.1

(-41.57%)

26,900.00

5,160

8,880

(72.09%)

3.8

(-52.8%)

26,200.00

28,680

49,200

(71.55%)

17.5

(-51.72%)

54,000.00

7,27,680

12,20,520

(67.73%)

290.55

(-33.83%)

14,675.00

11,640

19,440

(67.01%)

26.7

(-32.58%)

26,100.00

8,460

14,040

(65.96%)

24.2

(-50.46%)

15,225.00

1,320

2,160

(63.64%)

1.05

(-43.24%)

25,450.00

6,300

10,260

(62.86%)

146.95

(-35.35%)

14,750.00

34,920

56,640

(62.2%)

17.7

(-33.21%)

25,400.00

6,000

9,600

(60%)

174.2

(-33.35%)

14,850.00

24,000

38,160

(59%)

10.05

(-26.64%)

14,525.00

14,400

22,800

(58.33%)

60.5

(-28.82%)

23,900.00

29,59,905

46,80,910

(58.14%)

69.5

(-30.67%)

53,700.00

1,38,300

2,15,670

(55.94%)

414.8

(-29.83%)

15,050.00

16,320

25,440

(55.88%)

3.05

(-35.11%)

14,375.00

23,160

35,280

(52.33%)

120

(-20.24%)

23,700.00

50,92,945

76,70,260

(50.61%)

140.35

(-23.81%)

14,400.00

4,72,680

7,08,120

(49.81%)

108

(-22.86%)

55,500.00

5,24,640

7,82,490

(49.15%)

34.3

(-53.55%)

24,000.00

87,97,750

1,31,10,825

(49.02%)

47.35

(-33.17%)

55,900.00

1,08,510

1,60,470

(47.88%)

22.15

(-52.72%)

54,300.00

1,09,560

1,61,760

(47.65%)

193.9

(-40.06%)

14,550.00

47,040

68,880

(46.43%)

52.95

(-29.73%)

54,100.00

91,320

1,31,970

(44.51%)

255.05

(-36.33%)

53,600.00

1,61,430

2,26,380

(40.23%)

462.95

(-28.32%)

26,300.00

11,940

16,560

(38.69%)

12.9

(-55.05%)

53,500.00

5,33,700

7,31,400

(37.04%)

520.95

(-25.65%)

55,000.00

8,75,190

11,94,510

(36.49%)

70.95

(-49.34%)

14,825.00

6,600

9,000

(36.36%)

11.55

(-32.46%)

26,550.00

840

1,140

(35.71%)

9.25

(-55.95%)

14,725.00

11,160

15,120

(35.48%)

20.05

(-34.48%)

25,750.00

1,860

2,520

(35.48%)

68.85

(-41%)

26,600.00

84,760

1,11,475

(31.52%)

0.55

(-15.38%)

26,700.00

11,160

14,580

(30.65%)

5.3

(-52.68%)

54,200.00

1,22,340

1,56,690

(28.08%)

224.65

(-37.09%)

15,500.00

1,98,840

2,53,680

(27.58%)

0.85

(-19.05%)

25,500.00

43,200

55,080

(27.5%)

135.95

(-35.77%)

54,800.00

1,49,100

1,86,720

(25.23%)

96

(-46.01%)

58,200.00

35,550

43,710

(22.95%)

4.7

(-30.88%)

15,375.00

2,160

2,640

(22.22%)

0.6

(-58.62%)

26,250.00

900

1,080

(20%)

15.95

(-52.32%)

26,000.00

49,560

58,860

(18.77%)

33

(-48.68%)

14,925.00

10,080

11,880

(17.86%)

6.8

(-24.86%)

25,800.00

10,140

11,940

(17.75%)

59.7

(-44.23%)

69,500.00

475

550

(15.79%)

570

(-16.52%)

55,700.00

1,15,560

1,33,530

(15.55%)

27.4

(-50.9%)

56,400.00

1,25,550

1,44,690

(15.24%)

14.75

(-45.77%)

56,100.00

1,44,060

1,65,930

(15.18%)

17.95

(-50.96%)

25,850.00

2,400

2,760

(15%)

50.75

(-47.46%)

55,300.00

1,03,770

1,19,100

(14.77%)

47.95

(-49.97%)

59,000.00

6,97,470

7,88,160

(13%)

3.95

(-20.2%)

56,800.00

1,45,470

1,62,210

(11.51%)

10.75

(-42.51%)

55,400.00

76,590

85,050

(11.05%)

41.25

(-51.15%)

58,500.00

3,74,520

4,08,570

(9.09%)

3.85

(-34.75%)

14,625.00

14,760

16,080

(8.94%)

35.55

(-32.29%)

56,700.00

81,960

89,160

(8.78%)

12.2

(-40.05%)

15,000.00

9,40,680

10,22,880

(8.74%)

4.5

(-30.23%)

26,350.00

27,170

29,315

(7.89%)

0.7

(-6.67%)

56,600.00

93,480

1,00,500

(7.51%)

11.9

(-46.4%)

26,700.00

76,830

82,420

(7.28%)

0.55

(-8.33%)

26,650.00

1,800

1,920

(6.67%)

7.3

(-39.92%)

56,200.00

1,37,970

1,45,470

(5.44%)

17.45

(-47.28%)

22,850.00

6,110

6,435

(5.32%)

792.55

(-6.91%)

15,600.00

11,880

12,480

(5.05%)

0.6

(-40%)

56,900.00

52,350

54,330

(3.78%)

10

(-40.83%)

14,875.00

10,200

10,560

(3.53%)

8.8

(-30.16%)

56,500.00

9,01,470

9,31,740

(3.36%)

12.5

(-47.92%)

26,650.00

40,690

41,860

(2.88%)

0.55

(-8.33%)

58,800.00

33,060

33,690

(1.91%)

4.65

(-16.22%)

Position SHORT BUILD UP-STOCKS OPTION

Options

Futures

Calls

Puts

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

2,820.00

700

35,875

(5,025%)

13.05

(-89.03%)

2,800.00

10,500

2,53,400

(2,313.33%)

17

(-84.19%)

2,780.00

3,675

41,650

(1,033.33%)

22.05

(-82.15%)

36,500.00

1,675

15,275

(811.94%)

149.45

(-86.53%)

445.00

78,750

6,33,750

(704.76%)

3.8

(-88.71%)

2,840.00

4,375

33,950

(676%)

9.7

(-87.87%)

38,750.00

750

5,625

(650%)

20.85

(-93.74%)

440.00

1,70,000

12,28,750

(622.79%)

5.35

(-85.75%)

430.00

21,250

1,47,500

(594.12%)

10.55

(-78.36%)

37,000.00

7,525

41,700

(454.15%)

92

(-89.3%)

450.00

2,27,500

11,50,000

(405.49%)

2.65

(-91%)

3,120.00

11,600

57,600

(396.55%)

7.3

(-29.81%)

3,140.00

15,200

75,400

(396.05%)

5.6

(-39.78%)

455.00

68,750

3,22,500

(369.09%)

1.85

(-92.8%)

36,750.00

2,025

9,400

(364.2%)

114.5

(-88.09%)

36,250.00

825

3,725

(351.52%)

179.7

(-87.18%)

2,460.00

1,01,625

4,42,500

(335.42%)

13.4

(-19.03%)

37,500.00

5,250

22,400

(326.67%)

62

(-90.65%)

42,000.00

2,400

9,930

(313.75%)

60.5

(-51.37%)

460.00

2,05,000

8,12,500

(296.34%)

1.3

(-94.17%)

465.00

70,000

2,73,750

(291.07%)

1

(-94.76%)

3,160.00

11,000

39,400

(258.18%)

4.65

(-39.22%)

2,860.00

18,025

64,400

(257.28%)

7.8

(-87.82%)

2,640.00

1,750

6,125

(250%)

99.35

(-61.79%)

36,000.00

4,075

13,625

(234.36%)

239.95

(-83.43%)

40,000.00

5,685

18,135

(219%)

243

(-37.25%)

8,350.00

25,000

77,125

(208.5%)

95.75

(-2.99%)

39,000.00

3,915

11,325

(189.27%)

524.65

(-24.36%)

37,750.00

1,575

4,500

(185.71%)

53.6

(-91.13%)

1,420.00

98,100

2,66,850

(172.02%)

16

(-10.86%)

940.00

9,09,975

24,16,425

(165.55%)

6.5

(-35.64%)

1,230.00

74,500

1,96,000

(163.09%)

5

(-24.24%)

39,250.00

720

1,830

(154.17%)

443.55

(-27.41%)

1,140.00

1,86,250

4,69,375

(152.01%)

2.35

(-59.83%)

8,550.00

10,500

25,875

(146.43%)

26.9

(-51.4%)

3,750.00

38,150

93,275

(144.5%)

57

(-3.96%)

2,880.00

28,175

65,450

(132.3%)

6.05

(-88.86%)

3,260.00

3,800

8,800

(131.58%)

3.35

(-22.99%)

1,120.00

81,000

1,84,500

(127.78%)

12.2

(-4.69%)

960.00

34,38,750

77,99,250

(126.8%)

6.95

(-14.72%)

3,800.00

1,400

3,000

(114.29%)

0.45

(-67.86%)

11,200.00

1,725

3,675

(113.04%)

3

(-15.49%)

1,520.00

3,37,500

7,11,875

(110.93%)

22

(-17.45%)

8,400.00

56,000

1,17,375

(109.6%)

70.55

(-19.14%)

38,250.00

2,075

4,150

(100%)

35.45

(-92.01%)

3,640.00

18,400

36,800

(100%)

0.45

(-40%)

270.00

2,76,750

5,46,750

(97.56%)

3.45

(-51.75%)

43,000.00

1,770

3,420

(93.22%)

32

(-49.65%)

6,700.00

68,625

1,31,000

(90.89%)

44.3

(-28.08%)

4,450.00

21,750

41,250

(89.66%)

8.25

(-52.99%)

38,000.00

28,850

53,675

(86.05%)

42.35

(-91.75%)

8,900.00

38,125

70,875

(85.9%)

3.25

(-84.45%)

1,390.00

39,100

72,250

(84.78%)

3.35

(-54.73%)

1,050.00

35,650

65,875

(84.78%)

1.9

(-15.56%)

138.00

15,99,000

29,27,400

(83.08%)

1.44

(-5.26%)

470.00

3,91,250

7,13,750

(82.43%)

0.75

(-95.37%)

455.00

1,41,100

2,53,150

(79.41%)

4.8

(-45.14%)

4,150.00

38,100

67,950

(78.35%)

34.95

(-28.16%)

40,500.00

5,725

10,200

(78.17%)

13

(-90.1%)

1,290.00

1,02,800

1,78,800

(73.93%)

6.85

(-54.33%)

37,250.00

5,725

9,950

(73.8%)

71.65

(-90.37%)

2,860.00

39,600

66,600

(68.18%)

4.35

(-10.31%)

139.00

8,17,950

13,71,450

(67.67%)

1.12

(-13.85%)

2,200.00

2,03,400

3,38,700

(66.52%)

15.85

(-53.11%)

39,000.00

13,200

21,800

(65.15%)

22.75

(-92.47%)

19,250.00

8,450

13,950

(65.09%)

58.25

(-6.58%)

6,850.00

22,125

36,375

(64.41%)

18.3

(-42.36%)

40,000.00

35,175

57,650

(63.89%)

15.15

(-91.29%)

8,450.00

27,875

45,500

(63.23%)

51.75

(-30.77%)

265.00

1,44,000

2,34,000

(62.5%)

5.4

(-49.77%)

3,550.00

34,300

55,475

(61.73%)

12.65

(-30.11%)

1,940.00

1,77,500

2,85,000

(60.56%)

11.1

(-17.47%)

1,380.00

1,89,675

3,04,425

(60.5%)

16.55

(-27.89%)

1,560.00

56,000

88,800

(58.57%)

8.5

(-19.43%)

3,240.00

7,600

12,000

(57.89%)

2.3

(-43.9%)

2,180.00

65,700

1,02,900

(56.62%)

25.75

(-45.96%)

980.00

3,93,000

6,13,000

(55.98%)

4.95

(-54.59%)

255.00

4,79,700

7,42,300

(54.74%)

2.25

(-60.18%)

425.00

66,250

1,02,500

(54.72%)

13.75

(-73.12%)

1,490.00

54,600

84,000

(53.85%)

3.8

(-41.98%)

2,900.00

1,66,600

2,56,200

(53.78%)

5

(-89.18%)

6,750.00

24,250

37,250

(53.61%)

32.4

(-35.71%)

134.00

3,45,000

5,21,250

(51.09%)

0.25

(-13.79%)

280.00

29,83,500

44,93,250

(50.6%)

1.2

(-54.72%)

11,500.00

9,375

14,025

(49.6%)

2

(-31.03%)

2,800.00

35,200

52,525

(49.22%)

1.2

(-38.46%)

2,880.00

41,100

60,900

(48.18%)

2.9

(-3.33%)

1,220.00

79,500

1,17,500

(47.8%)

7.85

(-19.9%)

38,750.00

1,140

1,680

(47.37%)

585

(-23.85%)

1,510.00

40,800

59,400

(45.59%)

3.1

(-36.73%)

505.00

2,88,750

4,20,000

(45.45%)

0.15

(-96.05%)

2,380.00

20,475

29,475

(43.96%)

2.05

(-52.33%)

2,780.00

1,77,057

2,50,290

(41.36%)

18.35

(-35.95%)

1,190.00

31,350

44,000

(40.35%)

10.6

(-48.92%)

920.00

5,30,475

7,40,850

(39.66%)

12.7

(-32.8%)

1,280.00

91,600

1,26,000

(37.55%)

10.5

(-47.76%)

2,140.00

11,400

15,675

(37.5%)

0.2

(-50%)

38,500.00

15,500

21,175

(36.61%)

29.85

(-92.32%)

2,560.00

1,925

2,625

(36.36%)

138.45

(-58.37%)

835.00

1,84,800

2,52,000

(36.36%)

6.75

(-33.5%)

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Premium

Discount

Script
Spot
Future
Premium(%)

MCX

3,322.80

3,323.00

0.00%

PATANJALI

463.25

463.30

0.01%

WAAREEENER

3,056.60

3,057.00

0.01%

IREDA

127.87

127.89

0.01%

NAM-INDIA

1,078.80

1,079.00

0.01%

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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