Adani Energy Solutions Sees Sharp Open Interest Surge Amid Volatile Trading

Open Interest and Volume Dynamics

On 23 Jan, Adani Energy Solutions (symbol: ADANIENSOL) recorded an open interest (OI) of 49,727 contracts, up from 43,301 the previous day, marking an increase of 6,426 contracts or 14.84%. This rise in OI was accompanied by a total volume of 73,949 contracts, indicating robust participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹1,15,506.7 lakhs, while options contributed a staggering ₹33,144.3 crores in notional value, underscoring the scale of speculative and hedging activity.

The total derivatives value stood at ₹1,20,420.8 lakhs, reflecting a substantial liquidity pool available for traders and investors. The underlying stock price closed at ₹846, down sharply from previous levels, which adds context to the surge in open interest as market participants recalibrate their positions amid price weakness.

Price Action and Volatility

Adani Energy Solutions underperformed its sector peers and the broader market on the day. The stock declined by 9.99%, hitting an intraday low of ₹832.4, and traded within a wide range of ₹92.6. This volatility was further highlighted by an intraday volatility measure of 6.08%, calculated from the weighted average price, which skewed towards the lower end of the day’s range. The weighted average price suggested that a majority of the volume was executed closer to the day’s lows, signalling selling pressure.

The stock’s performance contrasted with the Power Generation/Distribution sector, which fell by a more modest 3.26%, and the Sensex, which declined by 0.91%. This relative underperformance points to company-specific factors influencing investor sentiment and trading behaviour.

Adani Energy Solutions is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a sustained downtrend and weak technical momentum. The stock’s market capitalisation stands at ₹99,994.77 crores, categorising it as a large-cap entity, yet its Mojo Score has deteriorated to 37.0 with a Sell grade, downgraded from a Strong Sell on 8 Jan 2026.

Market Positioning and Directional Bets

The sharp increase in open interest amid falling prices suggests that market participants are actively repositioning, possibly anticipating further downside or hedging existing exposures. The rise in OI alongside a decline in price typically indicates fresh short positions or put option buying, reflecting bearish sentiment. However, the substantial options value also points to complex strategies, including spreads and collars, which may be employed to manage risk in a volatile environment.

Delivery volumes have notably contracted, with a delivery volume of 3.07 lakh shares on 22 Jan representing a 48.6% drop against the five-day average delivery volume. This decline in investor participation at the delivery level contrasts with heightened derivatives activity, implying that speculative trading is dominating over long-term investment flows.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting trade sizes up to ₹2.72 crores based on 2% of the five-day average traded value. This liquidity facilitates active derivatives trading and allows institutional players to adjust positions without excessive market impact.

Sector and Broader Market Context

The power sector’s modest decline of 3.26% on the day, compared to Adani Energy Solutions’ near 10% drop, highlights company-specific pressures. These may stem from recent earnings concerns, regulatory developments, or shifts in energy demand forecasts. The stock’s downgrade in Mojo Grade from Strong Sell to Sell on 8 Jan 2026 reflects a slight improvement in outlook but remains firmly negative, signalling caution for investors.

Given the stock’s technical weakness and the surge in open interest, traders should closely monitor derivatives positioning for clues on potential directional moves. The elevated volatility and wide trading range suggest that the stock could continue to experience sharp swings in the near term.

Investor Takeaway

Adani Energy Solutions’ recent derivatives activity signals a market bracing for continued volatility and potential downside. The surge in open interest amid falling prices and subdued delivery volumes suggests that speculative traders are increasingly active, while long-term investor participation wanes. The stock’s technical indicators remain weak, trading below all major moving averages, and its Mojo Grade of Sell advises caution.

Investors should weigh the risks carefully, considering the stock’s large-cap status and liquidity, but also the evident bearish positioning in the derivatives market. Monitoring open interest trends and volume patterns will be crucial to anticipate any shifts in market sentiment or potential reversals.

Overall, while the power sector remains under pressure, Adani Energy Solutions’ pronounced underperformance and derivatives market behaviour highlight company-specific challenges that investors must factor into their decision-making process.

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