Info Edge Sees Sharp Open Interest Surge Amid Downtrend and Weak Investor Participation

Open Interest and Volume Dynamics

On 13 Feb 2026, Info Edge's open interest (OI) in futures and options contracts rose sharply to 54,112 from the previous 48,369, an absolute increase of 5,743 contracts. This 11.87% jump in OI is significant given the stock's recent price weakness. The total traded volume stood at 59,436 contracts, indicating active participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹39,234 lakhs, while options contracts represented a much larger notional value of ₹21,882.64 crores, underscoring the importance of options in the stock's derivatives trading.

The underlying stock price closed near its intraday low at ₹1,104.2, down 3.92% on the day, and has declined by 5.05% over the past three consecutive sessions. Notably, the weighted average price of traded contracts clustered closer to the day's low, suggesting that sellers dominated the session and that bearish sentiment is intensifying.

Market Positioning and Sentiment

The increase in open interest amid falling prices typically indicates that fresh short positions are being initiated rather than existing longs being closed. This is corroborated by the fact that Info Edge is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. The stock’s delivery volume on 12 Feb was 12.21 lakh shares, which is 18.38% lower than its 5-day average, pointing to reduced investor participation in the cash segment and possibly a shift towards speculative derivatives trading.

Info Edge’s market capitalisation stands at ₹71,949 crore, categorising it as a mid-cap stock. Despite its size, the stock’s Mojo Score has deteriorated to 43.0, with a downgrade from Hold to Sell on 1 Jul 2025. The current Mojo Grade of Sell reflects weakening fundamentals and technicals, which may be influencing the cautious stance of institutional and retail investors alike.

Directional Bets and Derivatives Strategy

The sharp rise in open interest alongside a declining stock price suggests that traders are increasingly betting on further downside. The futures value of ₹39,234 lakhs and the massive options notional value indicate that participants are actively hedging or speculating using options strategies such as puts or bear spreads. The large options value relative to futures also points to a preference for limited-risk strategies amid uncertain market conditions.

Given the stock’s recent underperformance relative to its sector and the broader Sensex, which fell 0.99% on the same day, the derivatives market activity may be reflecting a more bearish outlook. Info Edge outperformed its sector marginally by 0.31% on the day, but this is overshadowed by the three-day consecutive decline and the breach of key technical support levels.

Liquidity and Trading Considerations

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of approximately ₹5.63 crore based on 2% of the 5-day average traded value. This ensures that institutional investors can enter or exit positions without excessive market impact, which is crucial given the stock’s mid-cap status and recent volatility.

However, the falling delivery volumes and the clustering of traded prices near the lows suggest that long-term investors may be stepping back, leaving the derivatives market to absorb the bulk of speculative interest. This dynamic often precedes heightened volatility and can lead to sharp directional moves once a new catalyst emerges.

Outlook and Investor Implications

Info Edge’s current technical and derivatives market signals point to a cautious to bearish near-term outlook. The downgrade to a Sell grade by MarketsMOJO and the deteriorating Mojo Score reinforce the view that the stock faces headwinds from both fundamental and technical perspectives. Investors should be wary of the ongoing downtrend and the increased speculative activity in derivatives, which may amplify price swings.

For traders, the elevated open interest and volume in options suggest opportunities to employ hedging strategies or to position for further downside with defined risk. Long-term investors might consider reviewing their exposure in light of the stock’s weakening momentum and the availability of potentially superior alternatives within the e-retail and broader mid-cap universe.

In summary, the surge in open interest amid falling prices and subdued delivery volumes highlights a market increasingly positioned for downside risk in Info Edge. Monitoring changes in derivatives positioning and volume patterns will be critical for anticipating the stock’s next directional move.

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