Delhivery Ltd Gains 9.06%: 6 Key Factors Driving the Weekly Momentum

27 January 2026: Surge in Open Interest Signals Growing Market Activity

Delhivery Ltd began the week with a strong 3.41% gain to close at Rs.400.60, outpacing the Sensex’s 0.50% rise. This price movement coincided with a sharp 11.05% increase in open interest (OI) in the derivatives segment, rising by 1,956 contracts to 19,657. The futures segment alone accounted for a notional value of approximately ₹62,896 lakhs, while options contributed ₹7,685 crores, highlighting significant speculative interest.

The stock’s price traded above its 5-day moving average but remained below longer-term averages, indicating short-term momentum within a broader consolidation phase. Delivery volumes surged to 7.89 lakh shares, a 25.2% increase over the prior five-day average, signalling genuine investor participation rather than mere speculative trading. Despite this optimism, the stock’s Mojo Score remained cautious at 38.0 with a Sell rating, reflecting underlying fundamental concerns.

28 January 2026: Mixed Signals Amid Continued Open Interest Growth and Downgrade

Delhivery extended gains by 1.65% to Rs.407.20, though it underperformed the Transport Services sector’s 4.19% advance. Open interest rose further by 11.35% to 15,486 contracts, accompanied by a futures volume of 6,712 contracts and a combined derivatives value exceeding ₹2,453 crores. This activity suggested fresh bullish positioning despite the stock lagging sector benchmarks.

However, MarketsMOJO downgraded Delhivery to a Strong Sell rating with a Mojo Score of 28.0, citing deteriorating technical indicators and weak financial performance. The company reported a negative Profit Before Tax of ₹145.44 crores for Q2 FY25-26 and a low Return on Equity of 0.45%, raising concerns about profitability and management efficiency. The downgrade underscored the tension between short-term price momentum and longer-term fundamental challenges.

29 January 2026: Death Cross Formation Signals Potential Bearish Trend

On 29 January, Delhivery’s stock price rose modestly by 1.12% to Rs.411.75, outperforming the Sensex’s 0.22% gain. However, a significant technical development occurred as the 50-day moving average crossed below the 200-day moving average, forming a Death Cross. This indicator is widely regarded as a bearish signal, suggesting weakening medium- to long-term momentum and potential for further price declines.

Despite the Death Cross, the stock maintained short-term strength, trading above its 5-day, 20-day, and 50-day moving averages. Valuation metrics remained stretched, with a price-to-earnings ratio of 222.15, far exceeding the industry average of 31.31. Technical indicators such as MACD and On-Balance Volume presented a mixed but cautious outlook, reinforcing the need for vigilance among investors.

30 January 2026: Renewed Open Interest Surge and Technical Momentum Shift

Delhivery closed the week strongly at Rs.422.50, up 2.61% on the day and marking a four-day consecutive gain. Open interest surged by 15.48% to 19,575 contracts, accompanied by a robust volume of 18,614 contracts. The futures segment accounted for ₹52,761 lakhs in value, while options contributed a substantial ₹11,441.57 crores, indicating heightened bullish sentiment and active hedging strategies.

Technical indicators showed the stock trading above its 5-day, 20-day, 50-day, and 200-day moving averages, signalling short- to long-term strength, though it remained below the 100-day average. Despite this momentum, the Mojo Score remained at a cautious 28.0 with a Strong Sell rating, reflecting ongoing fundamental concerns. The stock outperformed both the Transport Services sector and the Sensex, highlighting its relative strength amid mixed market conditions.

Daily Price Comparison: Delhivery Ltd vs Sensex

Key Takeaways

Positive Signals: Delhivery demonstrated strong weekly gains of 9.06%, significantly outperforming the Sensex’s 1.62% rise. The stock’s consistent open interest surges and rising delivery volumes indicate growing investor engagement and bullish positioning. Technical indicators showed short-term strength with the stock trading above multiple moving averages by week’s end.

Cautionary Signals: Despite price momentum, the company’s fundamentals remain challenged, with a recent downgrade to Strong Sell due to weak profitability, negative quarterly earnings, and stretched valuation metrics. The formation of a Death Cross and mixed technical momentum suggest potential medium-term headwinds. The Mojo Score of 28.0 and Strong Sell rating advise prudence.

Market Context: Delhivery’s relative outperformance within the Transport Services sector and against the Sensex highlights its appeal amid mixed market conditions. However, the divergence between technical momentum and fundamental health underscores the complexity of the stock’s outlook.

Conclusion

Delhivery Ltd’s week was marked by notable price appreciation and heightened derivatives market activity, reflecting increased investor interest and bullish sentiment. The stock’s gains outpaced the broader market, supported by strong open interest growth and rising delivery volumes. However, the recent downgrade to Strong Sell, the Death Cross formation, and mixed technical signals temper enthusiasm, signalling potential risks ahead.

Investors should balance the short-term momentum against the company’s fundamental challenges and technical caution. Monitoring upcoming earnings, technical developments, and sector trends will be essential to assess whether Delhivery can sustain its gains or faces renewed pressure. For now, the stock remains a complex proposition, combining strong market activity with underlying risks.

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