Angel One Ltd Sees Sharp Open Interest Surge Amid Weak Price Momentum

Open Interest and Volume Dynamics

On 1 Feb 2026, Angel One Ltd’s open interest (OI) in derivatives rose sharply by 11.97%, increasing from 20,553 contracts to 23,014 contracts. This 2,461-contract increment is significant, especially when juxtaposed with the stock’s declining price trend. The volume traded stood at 16,103 contracts, indicating robust activity in the derivatives market. The futures segment alone accounted for a value of approximately ₹15,756.39 lakhs, while options contributed an overwhelming ₹8,813.71 crores, culminating in a total derivatives value of ₹18,103.72 lakhs.

Price Performance and Market Sentiment

Contrary to the rising open interest, Angel One’s share price underperformed, falling by 3.76% on the day and touching an intraday low of ₹2,421, down 4.72%. The stock has been on a downward trajectory for three consecutive sessions, cumulatively losing 6.12% in value. Notably, the weighted average price suggests that most volume was traded near the day’s low, signalling selling pressure. The stock currently trades below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish technical setup.

Investor Participation and Liquidity

Investor participation has risen, with delivery volumes on 30 Jan reaching 1.6 lakh shares, a 26.18% increase over the five-day average. This heightened delivery volume indicates that investors are increasingly taking positions in the stock, despite the recent price weakness. Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹2.54 crores, making it accessible for institutional and retail traders alike.

Interpreting the Open Interest Surge

The simultaneous rise in open interest and decline in price often points to fresh short positions being initiated, as traders anticipate further downside. However, it can also indicate long positions being added at lower levels, expecting a rebound. Given Angel One’s current technical weakness and underperformance relative to its sector (down 3.04% versus sector’s -0.34%) and the Sensex (which was flat at +0.01%), the former scenario appears more plausible.

Angel One’s Mojo Score stands at 47.0, with a recent downgrade from Hold to Sell on 27 Jan 2026, reflecting deteriorating fundamentals or market sentiment. The Market Cap Grade is 3, categorising it as a small-cap stock with a market capitalisation of ₹22,234 crores. This downgrade aligns with the observed price weakness and increased bearish positioning in derivatives.

Sector and Market Context

Within the capital markets sector, Angel One’s performance is lagging, which may be influencing the increased speculative activity in its derivatives. The sector itself has shown resilience, with only marginal declines, suggesting that the stock-specific factors are driving the current dynamics. The rising open interest could also be a reflection of hedging activity by institutional investors seeking to manage risk amid broader market uncertainties.

Potential Directional Bets and Trading Strategies

Traders should note that the increase in open interest coupled with falling prices often signals a strengthening bearish trend. Short sellers may be adding to their positions, expecting further declines. Conversely, contrarian investors might view the elevated delivery volumes and rising participation as a sign of accumulation at lower levels, potentially setting the stage for a reversal.

Given Angel One’s current trading below all key moving averages and the recent downgrade, cautious investors may prefer to avoid fresh long positions until a clear technical or fundamental turnaround emerges. Conversely, short-term traders could consider strategies that benefit from continued weakness, such as buying put options or short futures, while closely monitoring for any signs of a reversal.

Outlook and Conclusion

Angel One Ltd’s recent surge in open interest amidst falling prices highlights a complex market positioning scenario. The data suggests increased bearish bets, supported by technical weakness and a recent downgrade in the stock’s rating. While rising delivery volumes indicate growing investor interest, the overall sentiment remains cautious.

Investors and traders should closely monitor subsequent price action and open interest trends to gauge whether the current positioning leads to further declines or a potential turnaround. Until then, the stock’s risk profile remains elevated, and selective participation with appropriate risk management is advisable.

Key Metrics Summary:

• Open Interest: 23,014 contracts (+11.97%)
• Volume: 16,103 contracts
• Futures Value: ₹15,756.39 lakhs
• Options Value: ₹8,813.71 crores
• Price: ₹2,454 (underlying value)
• Day Change: -3.76%
• Mojo Score: 47.0 (Sell, downgraded from Hold on 27 Jan 2026)
• Market Cap: ₹22,234 crores (Small Cap)

Market participants should weigh these factors carefully when considering exposure to Angel One Ltd in the current environment.

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