FNO Positions – Long Buildup Short Buildup
You can use Our Advance Futures and Options Dashboard with Long Build up , Short buildup , Short covering and Long unwinding stocks . Click here to create free account and access.
Using Futures dashboard of Intradayscreener, you can check positions that traders are creating in Intraday. This can help with how to select stocks for intraday and to find which stocks to buy and sell. This can also help to select Short term trades based on how positions have been build in last few days
With help of Open interest data , we can see positions that traders are making in futures and options stocks.The positions are usually classified as Long buildup , Short Buildup , Long Unwinding , Short covering
- LONG Build up => It means people are taking positions assuming price will go up. This is marked by increase in open interest and increase in price of futures. Usually we also take care of long buildup of last few days before taking trades . If in last 2-3 sessions, traders have bought futures and increased open interest, most likely that uptrend will continue.
- Short Build Up => It means people are taking short positions , assuming price will go down. This is usually characterized by Increase in open interest and fall in price. Basically it means that traders are increasing their positions by selling futures as well because they expect the prices to go further down . Generally is good short buildup is happening in stocks, its followed up by further selling
- Long unwinding => This shows Long positions are now getting exhausted and people are starting to book profits , assuming rally is about to over. Long unwinding is marked by decrease in Open interest of futures and decrease in price as well. Usually long unwinding happens after an swing upmove where stocks move up for sometime followed by traders booking their positions
- Short covering => Short covering happens after stock has fallen a lot and now traders who have build short positions want to book profits . When short covering happens, traders will decrease Short positions. Short covering may also happen when some good news comes in stocks after prolonged falling and short sellers need to exit , as they are expecting reversal. Usually this is represented by Increase in price and fall in open interest
Combined with volumes , this can serve as important indicator in selecting stocks for intraday or short term
Features Trend represent all the expiry wise futures stocks. Here you can select the date to view the expiry wise stocks along with the trend.You can also select all, on the top right side to see the combined nse open interest for all expiry. As of now we are listing only stock futures and index futures data only.
How to use Long buildup while trading stocks
Usually stocks where in last few days , price is moving up and open interest is also moving up, continue their movement because continuous long buildup are being build . Example in below chart of Price vs Futures OI of JK cement , you can see from 28-29oct price was increasing along with OI jump which led to a further price jump. Traders build long positions on 28,29 oct and trend of price continued in upward direction
Similarly , if short positions or short buildup is happening in any stock from last few days, its highly likely that stock will continue to be in downtrend for sometime
You can click on any stock which is in Futures and Options and go below to Price vs Futures open interest section to see open interest buildup over last few days.