15-Minutes Built-Up Screen: ITC Case Study

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ITC, a diversified multi-business conglomerate, led the rally in consumer stocks on Monday after the government last week finalized rates for the upcoming goods and services tax (GST).

The NSE FMCG index surged 3.6 percent to a record high on May 22. Meanwhile, ITC rallied nearly 5.9 percent to an all-time high.

Heckyl 15-minutes built-up screen showed a series of long built ups for ITC, signaling a bullish bias for the day.

15-minutes built-up screen monitors open interest (OI), price and volume every 15-minutes to identify the short or long positions. In a day, there are 25 intervals of 15 minutes between 9:15 am to 3:30 pm.

Entry

On Monday, ITC has recorded 15 long built ups. Long interest in ITC helped the stock to maintain the upward momentum throughout day’s trade. 

A trader could have created a long position in the stock futures at Rs. 298 around 11:15 am after noticing bullish sentiment for the stock since early morning. Subsequently, he could have covered the long position towards closing at around Rs. 303.

By executing the trade, a trader could have made a profit of Rs. 5 per unit, or Rs. 12,000 on one lot of 2,400 units of underlying stock.

2

Bottom-line:
Heckyl 15-Minutes Built-up is a powerful screen for day traders. This screen not only helps in finding trading opportunities but also helps in deciding when to cover the position.

To know more about Heckyl’s F&O Analytics, email us at info@heckyl.com

2 thoughts on “15-Minutes Built-Up Screen: ITC Case Study

    Raghavendra said:
    May 28, 2017 at 6:57 am

    Hi,
    what is the significance of fresh contracts here? are they fresh long or fresh short?
    Also square off count is – square off of long positions or short positions?

    Thanks

    Liked by 1 person

    sourabhheckyl responded:
    May 29, 2017 at 6:54 am

    Hi,

    Any contract that increases the OI is a fresh contract, whereas any contract that reduces the overall OI is a square off contract. In this screen, we analyze the contracts traded in a 15-minute window and identify how many were square off (led to decrease in OI) and how many were fresh (led to an increase in OI). A long built up in a 15-minute window suggests that there has been a net increase in OI in the 15-minute window along with an increase in price while a short built up would mean that there has been a net increase in OI in the 15-minute window along with a decrease in price. Here, we do not track whether a trade is on the long side or short side at every contract level, we only do it for a 15-minute window.

    Regards,
    Team Heckyl

    Like

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