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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)

21,600.00

1,495

27,495

(1,739.13%)

1,128.75

(-2.62%)

21,400.00

845

12,220

(1,346.15%)

1,316.25

(-2.5%)

22,250.00

41,860

5,69,140

(1,259.63%)

572

(-6.75%)

21,900.00

24,245

2,42,905

(901.88%)

862.5

(-3.5%)

21,550.00

780

7,410

(850%)

1,195.4

(-10.02%)

21,950.00

6,045

49,660

(721.51%)

818.4

(-3.9%)

21,850.00

3,835

26,065

(579.66%)

901.85

(-3.6%)

22,200.00

1,84,275

11,63,240

(531.25%)

611.1

(-6.17%)

22,150.00

26,780

1,53,985

(475%)

655.85

(-4.52%)

21,750.00

2,925

15,665

(435.56%)

981.5

(-4.12%)

21,300.00

260

1,365

(425%)

1,377.1

(-2.91%)

22,050.00

14,885

66,105

(344.1%)

735.05

(-4.4%)

22,300.00

2,49,275

11,01,230

(341.77%)

535.7

(-7.04%)

21,650.00

2,665

11,115

(317.07%)

1,077.3

(-3.47%)

21,700.00

9,685

33,020

(240.94%)

1,036.5

(-3.16%)

26,450.00

21,905

68,835

(214.24%)

0.45

(-40%)

22,100.00

56,680

1,55,415

(174.2%)

691.7

(-4.95%)

21,800.00

21,905

57,200

(161.13%)

947.95

(-5.67%)

22,450.00

1,18,365

3,07,255

(159.58%)

425.65

(-9.4%)

22,550.00

1,51,385

3,61,985

(139.12%)

360.8

(-11.12%)

26,100.00

72,085

1,50,150

(108.3%)

0.5

(-37.5%)

22,400.00

3,87,140

7,76,360

(100.54%)

460.4

(-8.71%)

21,450.00

1,170

2,340

(100%)

1,249.3

(-9.18%)

26,550.00

74,880

1,45,015

(93.66%)

0.45

(-40%)

26,350.00

30,875

53,820

(74.32%)

0.5

(-33.33%)

26,050.00

49,075

83,005

(69.14%)

0.55

(-31.25%)

22,000.00

3,87,010

5,79,800

(49.82%)

777

(-3.94%)

22,600.00

8,08,795

12,07,050

(49.24%)

329.2

(-12.27%)

22,500.00

15,58,375

23,07,305

(48.06%)

390.85

(-10.66%)

23,100.00

16,17,005

23,50,660

(45.37%)

97.35

(-34%)

21,200.00

910

1,235

(35.71%)

1,481.9

(-14.44%)

22,350.00

3,70,630

4,87,305

(31.48%)

497.8

(-7.72%)

22,650.00

5,72,910

7,27,610

(27%)

298.9

(-13.6%)

26,500.00

11,50,370

14,51,190

(26.15%)

0.45

(-35.71%)

25,650.00

56,810

71,500

(25.86%)

0.7

(-30%)

25,750.00

45,500

56,940

(25.14%)

0.65

(-31.58%)

21,500.00

2,17,035

2,66,695

(22.88%)

1,224.45

(-2.22%)

24,200.00

26,73,645

32,70,540

(22.33%)

4.25

(-55.26%)

23,150.00

5,43,855

6,35,115

(16.78%)

83.5

(-36.84%)

23,600.00

19,03,200

20,90,920

(9.86%)

19.8

(-56.1%)

24,300.00

17,79,375

19,47,530

(9.45%)

3.4

(-53.74%)

22,700.00

22,51,340

23,00,805

(2.2%)

269.15

(-15.45%)

Position SHORT BUILD UP-STOCKS OPTION

Options

Futures

Calls

Puts

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

3,500.00

175

23,800

(13,500%)

232.5

(-14.33%)

1,290.00

500

61,500

(12,200%)

86.25

(-17.07%)

1,720.00

475

57,950

(12,100%)

97.2

(-12.43%)

1,140.00

700

43,400

(6,100%)

96.75

(-5.15%)

605.00

1,100

61,600

(5,500%)

6.75

(-30.05%)

6,800.00

300

12,900

(4,200%)

8.2

(-18%)

1,290.00

3,500

1,15,500

(3,200%)

37.3

(-32.85%)

136.00

5,200

1,61,200

(3,000%)

9.23

(-22.18%)

3,340.00

350

8,575

(2,350%)

169.5

(-11.74%)

367.50

1,66,500

40,44,000

(2,328.83%)

6.55

(-40.18%)

330.00

3,000

72,000

(2,300%)

33.65

(-22.82%)

6,300.00

1,100

25,200

(2,190.91%)

303.45

(-30.32%)

297.50

1,800

39,600

(2,100%)

14.7

(-5.16%)

460.00

19,000

3,14,450

(1,555%)

22.75

(-30.85%)

145.00

3,30,000

52,90,000

(1,503.03%)

9.6

(-10.28%)

440.00

9,500

1,47,250

(1,450%)

32.35

(-33.71%)

6,650.00

1,100

16,300

(1,381.82%)

283.6

(-24.52%)

2,280.00

300

4,200

(1,300%)

135.7

(-4.2%)

450.00

95,000

13,02,450

(1,271%)

27.5

(-28.39%)

4,900.00

750

9,900

(1,220%)

289.15

(-25.01%)

10,200.00

1,725

21,900

(1,169.57%)

11.15

(-46.65%)

1,100.00

500

6,000

(1,100%)

97.5

(-9.72%)

302.50

3,32,800

39,39,200

(1,083.65%)

2.95

(-26.25%)

2,420.00

1,400

16,200

(1,057.14%)

107.8

(-41.06%)

315.00

1,80,000

20,25,000

(1,025%)

1.7

(-19.05%)

1,190.00

5,625

61,250

(988.89%)

48.6

(-10.5%)

5,050.00

750

7,650

(920%)

204.7

(-20.66%)

1,180.00

7,500

73,125

(875%)

54.15

(-12.52%)

660.00

7,700

71,400

(827.27%)

122.4

(-5.99%)

540.00

5,420

50,135

(825%)

63.4

(-2.61%)

3,020.00

5,000

45,400

(808%)

123.6

(-8.78%)

900.00

1,500

13,500

(800%)

65

(-33.67%)

1,160.00

625

5,625

(800%)

69.85

(-34.1%)

1,740.00

49,000

4,35,050

(787.86%)

27

(-41.5%)

2,440.00

8,600

75,000

(772.09%)

97.5

(-41.16%)

450.00

3,675

31,850

(766.67%)

45.65

(-18.34%)

1,330.00

13,175

1,13,900

(764.52%)

61.15

(-6.14%)

3,550.00

1,575

12,600

(700%)

200

(-2.96%)

4,380.00

875

6,650

(660%)

27.95

(-1.58%)

355.00

97,500

7,25,000

(643.59%)

13.2

(-35.29%)

5,200.00

625

4,625

(640%)

181.65

(-0.44%)

3,300.00

1,700

11,700

(588.24%)

333.95

(-3.2%)

143.00

31,200

2,08,000

(566.67%)

5.6

(-14.76%)

165.00

88,800

5,74,425

(546.88%)

9.8

(-0.81%)

1,500.00

15,300

97,325

(536.11%)

69.55

(-33.7%)

220.00

5,925

37,525

(533.33%)

56.3

(-15.47%)

427.50

47,850

3,03,050

(533.33%)

1.6

(-8.57%)

265.00

7,900

49,375

(525%)

21.55

(-9.83%)

1,050.00

625

3,750

(500%)

109

(-5.22%)

780.00

3,000

18,000

(500%)

94.1

(-0.26%)

1,260.00

1,33,125

7,79,375

(485.45%)

16.25

(-23.53%)

1,160.00

2,250

13,125

(483.33%)

59.95

(-4.77%)

104.00

36,900

2,15,250

(483.33%)

7.33

(-8.49%)

4,060.00

4,550

26,250

(476.92%)

13.2

(-19.76%)

180.00

63,900

3,58,550

(461.11%)

2.03

(-23.11%)

565.00

13,200

73,700

(458.33%)

22.35

(-19.17%)

860.00

1,250

6,875

(450%)

24

(-42.45%)

91.00

3,52,750

19,33,750

(448.19%)

4.31

(-5.9%)

960.00

3,000

16,000

(433.33%)

61.35

(-0.08%)

44.00

23,91,625

1,24,99,625

(422.64%)

0.72

(-20%)

262.50

1,00,000

5,00,000

(400%)

11.85

(-12.87%)

1,360.00

275

1,375

(400%)

175.5

(-8.21%)

1,380.00

2,000

10,000

(400%)

10

(-27.01%)

4,100.00

7,500

37,000

(393.33%)

86.1

(-37.86%)

1,900.00

14,000

68,600

(390%)

82.9

(-15.45%)

1,520.00

2,925

14,300

(388.89%)

86.4

(-9.62%)

8,700.00

5,475

26,325

(380.82%)

331.05

(-24.04%)

5,800.00

3,000

14,200

(373.33%)

239.2

(-13.27%)

352.50

36,000

1,63,500

(354.17%)

14.9

(-27.32%)

2,820.00

350

1,575

(350%)

100

(-15.54%)

1,560.00

9,450

42,350

(348.15%)

22.85

(-9.15%)

4,000.00

7,000

30,750

(339.29%)

136.8

(-30.43%)

325.00

99,225

4,29,300

(332.65%)

18.25

(-25.51%)

152.00

27,000

1,14,750

(325%)

0.4

(-11.11%)

1,560.00

22,525

95,625

(324.53%)

41.5

(-35.61%)

370.00

7,56,000

32,07,000

(324.21%)

5.5

(-43.01%)

340.00

32,500

1,37,500

(323.08%)

22.4

(-26.32%)

780.00

4,650

19,375

(316.67%)

36.65

(-8.94%)

141.00

36,400

1,50,800

(314.29%)

6.59

(-13.4%)

730.00

38,500

1,58,900

(312.73%)

31.25

(-9.42%)

252.50

24,250

99,425

(310%)

4.25

(-25.83%)

2,550.00

6,875

28,125

(309.09%)

79.05

(-16.35%)

4,000.00

14,700

59,150

(302.38%)

216.85

(-3.69%)

960.00

6,000

24,000

(300%)

32.4

(-28.79%)

1,320.00

500

2,000

(300%)

6.45

(-40.55%)

1,500.00

3,500

14,000

(300%)

204

(-14.68%)

470.00

65,550

2,59,350

(295.65%)

19

(-32.38%)

147.50

1,65,000

6,50,000

(293.94%)

8.08

(-11.4%)

17,600.00

600

2,350

(291.67%)

1.7

(-15%)

380.00

9,000

35,100

(290%)

90.25

(-1.69%)

3,250.00

3,750

14,250

(280%)

22.4

(-13.01%)

70.00

67,925

2,57,400

(278.95%)

11.31

(-4.07%)

2,260.00

13,175

49,725

(277.42%)

69.35

(-13.15%)

3,450.00

2,800

10,500

(275%)

249

(-4.98%)

147.50

20,800

78,000

(275%)

3.95

(-12.8%)

6,700.00

1,875

7,000

(273.33%)

372.9

(-8.14%)

2,460.00

10,800

40,000

(270.37%)

87.9

(-43.14%)

156.00

1,50,400

5,54,600

(268.75%)

7.36

(-2.26%)

5,000.00

9,150

33,600

(267.21%)

231.95

(-20.57%)

287.50

1,98,000

7,26,750

(267.05%)

9

(-13.88%)

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Premium

Discount

Script
Spot
Future
Premium(%)

GLENMARK

2,091.80

2,091.90

0.00%

PREMIERENE

917.35

917.45

0.01%

TITAN

4,097.20

4,097.80

0.01%

ALKEM

5,258.00

5,259.00

0.01%

BHEL

248.11

248.17

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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