Traders bet on IndiGo shares falling further, create massive shorts

MUMBAI: Many derivatives traders are likely to have built up huge short positions on IndiGo’s futures and options counter from July 10, the day when some market players purchased a sizeable quantity of shares on the cash market as the aviation company’s stock plunged 19 per cent before closing down almost 11 per cent at Rs 1,398 amid a promoter dispute .

Read along with the derivatives open position data, it’s possible that the big traders have initiated bearish bets either as a hedge against their cash positions or to simply speculate on the share price movement, which could be sharp in the coming days.