Long Buildup Short buildup – Futures and Option Open interest gainers

Long buidup Short buildup – oi spurts

Live FNO positions buildup

You can select Intraday stocks by seeing open interest positions being build up in the stock which trades in futures and options. Long buildup stocks , short buildup stocks etc

What is Open Interest

Open Interest refers to the total outstanding positions that is open till now in that particular derivative. It refers to current active or Open contracts , that have not been settled yet. Why would traders want to build new Open interest ? well they will expect the underlying to move in some direction and hence they will buy new contracts and increase open interest. Similarly when traders think that the current trend will be soon over, they start to square off the derivative contract of options or futures and hence open interest decreases.

What does Increase in Open Interest or decrease in open interest means?

Increase in open interest in future contracts can mean that traders are expecting current trend to remain in the stocks and hence they are building new open positions in derivatives to make profits.

Decrease in open interest indicates that traders are expecting current trend to reverse of fade out and hence t hey are squaring off their derivative positions to book profits

What is Long buidup short buildup

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 Buildup  : When traders are building long positions, it essentially means people are taking positions assuming price will go up. This is characterized by increase in open interest and increase in price

Short Buildup  =>When traders are building short positions, 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.

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 fall in price and fall in open interest

Short covering => This means that Short positions are getting decreased and people are booking profits . Reversal can occur from here . Short covering is represented by Increase in price and fall in open interest

How to select intraday stocks with Open interest

With the above live open interest positions, you can find stocks where traders are building long positions or short positions. You can also use Volumes for confirmation of Open interest positions. A stock with high volumes and increase in open interest will usually rise in coming days.

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