Open Interest and Volume Dynamics
On 1 February 2026, Angel One Ltd's open interest (OI) in derivatives rose sharply to 28,024 contracts from the previous 20,553, marking a substantial increase of 36.35%. This surge in OI was accompanied by a total volume of 64,896 contracts traded, reflecting robust market activity. The futures segment alone accounted for a value of approximately ₹78,780 lakhs, while the options segment's notional value was significantly higher at ₹3,225.33 crores, culminating in a combined derivatives value of ₹887.91 crores.
The underlying stock price closed at ₹2,360, having experienced a wide intraday trading range of ₹322.6 and an intraday volatility of 8.2%. Notably, the weighted average price of traded volumes skewed towards the lower end of the day's range, indicating selling pressure and bearish sentiment among market participants.
Price Performance and Market Context
Angel One Ltd underperformed its sector peers and the broader market on the day. The stock declined by 8.58%, significantly lagging the Finance/NBFC sector's fall of 2.15% and the Sensex's modest 1.03% drop. This marked the third consecutive day of losses for the stock, which has now declined by 11.59% over this period. The intraday low of ₹2,199.5 represented a 13.44% drop from the previous close, underscoring the heightened selling pressure.
Technical indicators further highlight the bearish trend, with the stock trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum. Investor participation has risen, as evidenced by a 26.18% increase in delivery volume to 1.6 lakh shares on 30 January, compared to the five-day average, suggesting that investors are actively repositioning their holdings amid the volatility.
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Interpreting the Open Interest Surge
The 36.35% increase in open interest suggests that new positions are being established rather than existing ones being closed. Given the concurrent price decline and volume patterns, this likely indicates that market participants are taking fresh short positions or hedging existing long exposures. The concentration of volume near the day's low price further supports the view of bearish directional bets.
Such a rise in OI during a downtrend often points to strengthening conviction among sellers, potentially anticipating further downside. However, it is also possible that some investors are employing options strategies to protect against volatility or to speculate on a rebound, given the sizeable options notional value involved.
Market Positioning and Sentiment
Angel One Ltd's Mojo Score currently stands at 47.0, with a Mojo Grade of Sell, downgraded from Hold on 27 January 2026. This downgrade reflects deteriorating fundamentals and technical weakness. The company’s market capitalisation is ₹22,234 crores, categorising it as a small-cap within the capital markets sector. The sector itself has been under pressure, with the Finance/NBFC index falling by 2.11% on the day, indicating broader market headwinds.
Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹2.54 crores, ensuring that institutional investors can manoeuvre positions without excessive market impact. The rising delivery volumes suggest that investors are actively adjusting their portfolios, possibly reallocating away from Angel One Ltd amid the negative momentum.
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Implications for Investors
For investors, the sharp rise in open interest combined with the stock’s underperformance and technical weakness signals caution. The current market positioning suggests that bearish sentiment is dominant, and further downside cannot be ruled out in the near term. Those holding long positions may consider protective strategies such as stop-loss orders or option hedges to mitigate risk.
Conversely, traders with a higher risk appetite might explore short-selling opportunities or option strategies that benefit from continued volatility and downward price movement. However, given the stock’s liquidity and volatility profile, careful risk management is essential.
Longer-term investors should monitor fundamental developments closely, as the downgrade in Mojo Grade to Sell reflects underlying challenges that may impact earnings and growth prospects. The capital markets sector’s broader weakness also warrants attention, as sectoral headwinds could persist.
Conclusion
Angel One Ltd’s recent surge in open interest amid a volatile trading session highlights a significant shift in market sentiment and positioning. The combination of increased derivatives activity, falling prices, and rising delivery volumes points to a bearish outlook among investors. While this presents potential trading opportunities, it also underscores the need for prudent risk management and thorough analysis before making investment decisions.
As the stock navigates this challenging phase, market participants should remain vigilant to evolving price action, volume trends, and sector dynamics to gauge the sustainability of the current trend and identify potential inflection points.
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