Key Events This Week
5 Jan: Stock opens at Rs.1,342.85, declines 1.56%
6 Jan: Continued dip to Rs.1,336.30 (-0.49%) on low volume
7 Jan: Intraday high of Rs.1,389 with 3.4% surge and 15.5% open interest spike
8 Jan: Sharp fall of 1.66% amid Sensex’s 1.41% drop
9 Jan: Week closes at Rs.1,321.60, down 1.11% on heavy volume
5 January: Weak Start Amid Broader Market Decline
Info Edge began the week on a cautious note, closing at Rs.1,342.85, down 1.56% from the previous close. This decline was in line with the Sensex’s modest 0.18% fall to 37,730.95. The stock traded on moderate volume of 68,362 shares, reflecting subdued investor interest amid a broadly negative market sentiment. The initial drop set a tentative tone for the week, with the stock testing support levels near Rs.1,340.
6 January: Continued Pressure on Low Volume
The downward trend persisted on 6 January, with the stock slipping further by 0.49% to Rs.1,336.30. Trading volume contracted sharply to 12,437 shares, indicating a lack of conviction among buyers. The Sensex also declined by 0.19% to 37,657.70, maintaining the cautious market environment. The stock’s movement remained subdued, consolidating near its short-term moving averages but failing to attract significant buying interest.
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7 January: Intraday High and Open Interest Surge Signal Renewed Optimism
Midweek brought a notable reversal as Info Edge surged 3.4% intraday to a high of Rs.1,389, closing at Rs.1,359.00, a 1.70% gain on the day. This performance outpaced the Sensex, which edged up 0.03% to 37,669.63. The stock’s rebound followed two days of decline and was supported by a significant 15.5% increase in open interest in the derivatives segment, rising from 31,370 to 36,231 contracts. This surge in open interest, coupled with a daily volume of 42,400 contracts and a futures segment value of approximately ₹28,241.8 lakhs, indicated heightened market activity and renewed investor confidence.
The stock’s price action was bolstered by its position above the 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term momentum. However, it remained below the 200-day moving average, suggesting longer-term resistance persists. The increase in delivery volume to 4.27 lakh shares on 6 January, a 31.49% rise over the five-day average, further underscored stronger investor participation.
8 January: Sharp Decline Amid Broader Market Sell-Off
Following the midweek rally, Info Edge reversed sharply on 8 January, falling 1.66% to Rs.1,336.40 on increased volume of 66,588 shares. This decline coincided with a significant 1.41% drop in the Sensex to 37,137.33, reflecting a broader market sell-off. The stock’s retreat erased much of the gains from the previous day, highlighting the volatility and sensitivity to overall market conditions. Despite the setback, the stock remained above several short-term moving averages, maintaining a technical base for potential recovery.
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9 January: Week Closes Lower on Heavy Volume
The week concluded with a further decline of 1.11% to Rs.1,321.60 on heavy volume of 244,544 shares, signalling profit-taking and cautious sentiment. The Sensex also fell 0.89% to 36,807.62, continuing the downward trend. Despite the negative close, the stock’s weekly performance (-3.12%) was only marginally worse than the Sensex’s decline (-2.62%), indicating relative resilience amid market turbulence. The stock’s trading activity suggests that while short-term momentum remains fragile, investor interest persists at these levels.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-05 | Rs.1,342.85 | -1.56% | 37,730.95 | -0.18% |
| 2026-01-06 | Rs.1,336.30 | -0.49% | 37,657.70 | -0.19% |
| 2026-01-07 | Rs.1,359.00 | +1.70% | 37,669.63 | +0.03% |
| 2026-01-08 | Rs.1,336.40 | -1.66% | 37,137.33 | -1.41% |
| 2026-01-09 | Rs.1,321.60 | -1.11% | 36,807.62 | -0.89% |
Key Takeaways
Positive Signals: The intraday surge on 7 January and the 15.5% increase in open interest highlight renewed market optimism and active repositioning by investors. The stock’s ability to trade above multiple short- and medium-term moving averages suggests underlying technical strength despite recent volatility.
Cautionary Notes: The stock’s failure to sustain gains above the 200-day moving average and the overall Mojo Grade of ‘Sell’ indicate persistent longer-term resistance and fundamental concerns. The weekly decline of 3.12%, slightly worse than the Sensex’s 2.62% fall, reflects vulnerability to broader market pressures and profit-taking.
Conclusion
Info Edge’s week was marked by significant intraday volatility, with a midweek rally driven by strong derivatives activity and open interest growth. However, the gains were not sustained as the stock succumbed to broader market weakness and profit-taking towards the week’s end. While short-term technical indicators point to potential momentum, the longer-term outlook remains cautious given the Mojo Grade ‘Sell’ and resistance at key moving averages. Investors should monitor the stock’s ability to hold above support levels and watch for further shifts in open interest and volume to gauge the sustainability of any recovery within a challenging market environment.
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