Heckyl Alpha Pulse

Profitable Trading Tips with the 15 Minutes Built-Up Screen : IDFC Case Study.

Posted on October 3, 2015 Updated on October 3, 2015

We have continuously flagged “15-Minutes Built Up Screen” in our F&O product as one of the most important screens for devising profitable trading strategies. For every stock, this screen gives a snapshot every 15 minutes for the open interest (OI) and a breakup of fresh and square-off contracts along with volumes.

We highlight the use case around “Intra-day trading using short built up” in this study. Theoretically short built up implies increase in OI and decrease in price. A short built up is seen as a bearish trend for that particular stock in the short term. A trader can exploit this trading opportunity either through short selling or buying a put of an appropriate strike price.

We highlight a case study for IDFC. IDFC was in focus on 1^st October 2015 given the news flow around the stock. The stock value went down sharply given the de-merger of IDFC bank business. Our 15-minutes built-up screen for IDFC indicated that only fresh contracts were opened since 10:15 a.m. for a significant duration i.e. for 135 minutes up to 12:30 p.m. The Zone was clearly Short Built Up with zero Square-offs.

Clearly an appropriate trading strategy can be built to capture this. After seeing first 3 zones of short built-up (10:15 a.m. – 11:00 a.m.), a positional trader could have shorted the stock in the range of INR 65-66.

As expected, IDFC stock price decreased over the next sessions. The stock reached a low of INR 59.80 during the day i.e. down by almost 10% from the morning session. By using Heckyl’s 15-Minutes Built Up screen, one could have made profits by using the short-selling strategy.

The F&O solution of Heckyl will help a trader to make profitable trades on-the-go in the market. To know more, mail us at info@heckyl.com.