Bajaj Finance Sees Significant Open Interest Surge Amid Mixed Technical Signals

Open Interest and Volume Dynamics

The latest data reveals that open interest (OI) in Bajaj Finance’s futures and options contracts surged from 1,94,529 to 2,18,806 contracts, an increase of 24,277 contracts or 12.48% on 22 Jan 2026. This rise in OI accompanied a daily volume of 92,903 contracts, indicating robust participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹3,29,350 lakhs, while options contributed a staggering ₹33,683,728,680 in notional value, underscoring the stock’s prominence in the derivatives space.

Underlying the derivatives activity, the spot price of Bajaj Finance closed at ₹939, marginally outperforming the Sensex’s 0.22% gain but slightly lagging the NBFC sector’s 0.58% advance. The stock has recorded gains over the past two consecutive sessions, delivering a cumulative return of 0.67%, yet it remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This divergence between price action and technical indicators suggests a cautious stance among traders despite the open interest build-up.

Investor Participation and Liquidity Considerations

Investor participation in the cash segment appears to be waning, with delivery volumes on 21 Jan falling by 34.19% to 31.79 lakh shares compared to the five-day average. This decline in delivery volume may indicate reduced conviction among long-term holders or profit-booking ahead of potential volatility. Nevertheless, liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹14.61 crore based on 2% of the five-day average.

Market Positioning and Directional Bets

The surge in open interest, coupled with steady volume, suggests that market participants are actively repositioning themselves in Bajaj Finance derivatives. The increase in OI often reflects fresh capital entering the market, either through new long positions or short hedges. Given the stock’s current technical weakness—trading below all major moving averages—there is a possibility that some investors are taking protective short positions or speculating on a near-term correction.

However, the modest price appreciation and consecutive gains over two sessions imply that bullish sentiment has not entirely dissipated. The stock’s Mojo Score of 71.0 and a current Mojo Grade of Buy (downgraded from Strong Buy on 21 Jan 2025) indicate a positive fundamental outlook, albeit with some caution. The downgrade reflects a tempered optimism, possibly due to valuation concerns or sector headwinds affecting NBFCs broadly.

Sector and Market Context

Bajaj Finance operates within the Non Banking Financial Company (NBFC) sector, a space that has shown resilience but also faces regulatory and macroeconomic challenges. The sector’s 0.58% gain on the day outpaced Bajaj Finance’s 0.45% return, suggesting that while the company remains a key player, it is slightly underperforming its peers. The Sensex’s modest 0.22% rise further contextualises the stock’s relative strength.

From a market capitalisation perspective, Bajaj Finance is a large-cap stock valued at ₹5,85,224.42 crore, underscoring its significance in the Indian equity landscape. Its Market Cap Grade of 1 confirms its status among the largest and most liquid stocks, making it a preferred choice for institutional investors and derivatives traders alike.

Implications for Investors

The current open interest surge in Bajaj Finance’s derivatives signals increased market attention and potential volatility ahead. Investors should weigh the mixed technical signals carefully: while the stock’s fundamentals remain strong, as reflected in its Mojo Score and Buy rating, the technical weakness and falling delivery volumes suggest caution.

Traders might consider monitoring the evolution of open interest and volume patterns closely. A sustained rise in OI accompanied by price appreciation above key moving averages could confirm renewed bullish momentum. Conversely, if OI growth coincides with price declines, it may indicate growing bearish bets or hedging activity.

Given Bajaj Finance’s liquidity and market cap stature, it remains a viable candidate for both long-term investors and active derivatives traders. However, the recent downgrade from Strong Buy to Buy on 21 Jan 2025 advises a more measured approach, factoring in sector dynamics and broader market conditions.

Conclusion

Bajaj Finance Ltd’s derivatives market activity on 22 Jan 2026 highlights a significant increase in open interest and sustained volume, reflecting shifting market positioning amid a nuanced technical landscape. While the stock’s fundamentals and large-cap status underpin its appeal, investors should remain vigilant to technical signals and sector trends before committing fresh capital. The interplay of rising open interest and subdued price action suggests a market in search of direction, with potential for both upside and downside moves in the near term.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →