Hindustan Petroleum Sees Sharp Open Interest Surge Amidst Weak Price Momentum

Open Interest and Volume Dynamics

On 22 January 2026, Hindustan Petroleum’s open interest (OI) in futures and options contracts rose sharply to 40,577 contracts from the previous day’s 36,610, marking an absolute increase of 3,967 contracts or 10.84%. This surge in OI was accompanied by a futures volume of 20,943 contracts, reflecting active trading interest. The futures market value stood at ₹75,844.5 lakhs, while the options segment exhibited a substantial notional value of approximately ₹10,964 crores, underscoring the significant derivatives market exposure.

The combined derivatives turnover value was ₹77,116.15 lakhs, indicating robust liquidity in the stock’s derivatives despite the underlying price weakness. The underlying equity price closed at ₹424, down 1.46% on the day, underperforming the Oil sector’s decline of 0.63% and the broader Sensex’s marginal fall of 0.28%.

Price Performance and Technical Context

Hindustan Petroleum has been on a downward trajectory, losing 7.4% over the past five trading sessions. The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend. This technical weakness is compounded by a significant drop in delivery volume, which fell by 36.2% to 21.95 lakh shares on 22 January compared to the five-day average, indicating waning investor participation in the cash market.

Despite the negative price momentum, the stock maintains a relatively attractive dividend yield of 3.62%, which may provide some cushion for long-term investors amid volatility. The market capitalisation stands at ₹89,719.64 crores, categorising it as a mid-cap stock within the Oil sector.

Market Positioning and Potential Directional Bets

The sharp rise in open interest amid falling prices suggests that market participants are actively repositioning themselves. Typically, an increase in OI concurrent with a price decline can indicate fresh short positions being established or long positions being unwound. However, the sizeable derivatives turnover and elevated options market value imply that traders may be employing complex strategies, including hedging or directional bets on volatility.

Given the stock’s underperformance relative to its sector and the broader market, some investors might be speculating on further downside, while others could be positioning for a potential rebound, especially considering the stock’s attractive dividend yield and mid-cap status. The decline in delivery volumes also points to reduced conviction among long-term holders, possibly shifting the focus towards short-term trading strategies in the derivatives market.

Mojo Score and Analyst Ratings

Hindustan Petroleum currently holds a Mojo Score of 64.0, reflecting a moderate outlook. The Mojo Grade was downgraded from Buy to Hold on 22 January 2026, signalling a cautious stance amid recent price weakness and market dynamics. The company’s market cap grade is 2, consistent with its mid-cap classification. This rating adjustment aligns with the observed technical deterioration and subdued investor participation, suggesting that analysts are awaiting clearer directional cues before upgrading their outlook.

Liquidity and Trading Considerations

The stock’s liquidity remains adequate for sizeable trades, with the average traded value over five days supporting a trade size of approximately ₹4.78 crores based on 2% of average volume. This liquidity profile ensures that institutional and retail investors can execute trades without significant market impact, which is crucial given the active derivatives interest.

Outlook and Investor Takeaways

In summary, the recent surge in open interest for Hindustan Petroleum’s derivatives contracts amid a declining price trend and falling delivery volumes highlights a complex market environment. Traders appear to be actively repositioning, possibly anticipating further volatility or a directional shift. The downgrade to a Hold rating by analysts reflects the need for caution, as the stock remains below key technical levels and faces subdued investor participation.

Investors should closely monitor open interest trends alongside price action and volume patterns to gauge market sentiment. The stock’s attractive dividend yield and mid-cap status may appeal to income-focused investors, but the current technical weakness warrants prudence. Those considering exposure to Hindustan Petroleum should weigh the evolving derivatives positioning and broader sector dynamics before making investment decisions.

Key Metrics at a Glance:

• Open Interest: 40,577 contracts (+10.8%)


• Futures Volume: 20,943 contracts


• Futures Market Value: ₹75,844.5 lakhs


• Options Market Value: ₹10,964 crores


• Underlying Price: ₹424 (down 1.46%)


• 5-day Price Return: -7.4%


• Dividend Yield: 3.62%


• Mojo Score: 64.0 (Hold, downgraded from Buy)


• Market Cap: ₹89,719.64 crores (Mid Cap)

As the derivatives market activity intensifies, investors and traders alike should remain vigilant to shifts in open interest and volume patterns, which often presage significant price movements in the underlying equity.

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