Angel One Ltd Sees Sharp Surge in Derivatives Open Interest Amid Bearish Price Action

Open Interest and Volume Dynamics

On 27 Feb 2026, Angel One Ltd’s open interest (OI) in derivatives rose sharply to 24,219 contracts from 18,869 the previous day, marking an increase of 5,350 contracts or 28.35%. This surge was accompanied by a robust trading volume of 28,711 contracts, indicating heightened activity and investor interest in the stock’s futures and options. The futures segment alone accounted for a value of approximately ₹33,322 lakhs, while options contributed a staggering ₹14,553.32 crores, culminating in a total derivatives value of ₹37,087.62 lakhs.

The underlying stock price, however, moved in the opposite direction, closing at ₹235, down 4.26% on the day and touching an intraday low of ₹235 (-4.67%). This price action underperformed the capital markets sector, which declined by 1.38%, and the broader Sensex, which fell by 0.75%. Angel One’s weighted average traded price skewed closer to the day’s low, suggesting selling pressure dominated the session.

Market Positioning and Investor Sentiment

The simultaneous rise in open interest and decline in price typically indicates that fresh short positions are being initiated or that existing longs are being liquidated. Given Angel One’s consecutive two-day fall, with a cumulative return loss of 5.14%, the data suggests that bearish bets are gaining traction among derivatives traders. The stock is trading below all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—further reinforcing the negative technical outlook.

Interestingly, delivery volume on 26 Feb surged to 26.2 lakh shares, a remarkable 1,041.16% increase over the five-day average delivery volume. This spike in delivery volume indicates rising investor participation at the stock’s lower price levels, possibly reflecting bargain hunting or portfolio rebalancing by long-term holders despite the short-term bearish sentiment in derivatives.

Valuation and Market Capitalisation Context

Angel One Ltd is classified as a small-cap company with a market capitalisation of ₹21,808 crores. Its current Mojo Score stands at 41.0, reflecting a Sell rating, downgraded from Hold on 27 Jan 2026. The market cap grade is a modest 3, indicating limited scale compared to larger peers in the capital markets sector. This downgrade aligns with the recent price weakness and deteriorating technical indicators, signalling caution for investors.

Implications for Traders and Investors

The sharp increase in open interest amidst falling prices suggests that traders are positioning for further downside or increased volatility in Angel One Ltd. This could be driven by a combination of factors including sector headwinds, profit booking, or broader market uncertainty. The elevated options value, particularly in the derivatives market, points to active hedging and speculative strategies being employed.

For investors, the current scenario warrants caution. The stock’s underperformance relative to its sector and benchmark indices, coupled with a downgrade in Mojo Grade to Sell, indicates a challenging near-term outlook. However, the surge in delivery volumes hints at some accumulation by longer-term investors, which could provide a base for eventual recovery if fundamentals improve.

Technical and Fundamental Outlook

Technically, Angel One Ltd’s trading below all major moving averages signals a bearish trend. The stock’s inability to hold above short-term averages suggests resistance at higher levels. From a fundamental perspective, the company operates in the capital markets sector, which is currently facing mixed sentiments due to macroeconomic factors and regulatory developments.

Investors should monitor upcoming quarterly results and sectoral news closely, as these will influence the stock’s trajectory. The current Mojo Score of 41.0 and Sell rating reflect the need for a cautious stance until clearer signs of recovery emerge.

Broader Market Context and Sector Performance

The capital markets sector has experienced moderate weakness recently, with the sector index falling 1.38% on the day Angel One saw its price decline by 4.26%. This underperformance highlights company-specific challenges or profit-taking pressures. The Sensex’s relatively mild decline of 0.75% suggests that Angel One’s stock is facing more pronounced selling pressure than the broader market.

Liquidity remains adequate for Angel One, with the stock’s average traded value supporting trade sizes up to ₹3.66 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional investors can enter or exit positions without significant market impact, which is crucial during volatile phases.

Conclusion: Navigating the Current Volatility

Angel One Ltd’s recent surge in open interest amid falling prices paints a picture of increased bearish positioning and heightened market activity. While the stock’s fundamentals and sector outlook remain under pressure, the elevated delivery volumes indicate some underlying investor interest at current levels. Traders should remain vigilant for further directional cues from derivatives activity and price action, while investors may prefer to await clearer signs of a turnaround before committing fresh capital.

Given the current Mojo Grade downgrade to Sell and the technical weakness, a cautious approach is advisable. Monitoring upcoming earnings, sector developments, and changes in open interest will be key to understanding the stock’s next move in this volatile environment.

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