Open Interest and Volume Dynamics
On 20 Feb 2026, Info Edge’s open interest in derivatives rose sharply by 6,229 contracts, an 11.47% increase from the previous day’s 54,322 to 60,551 contracts. This spike in OI was accompanied by a futures volume of 15,650 contracts, reflecting active participation in the derivatives market. The total futures value stood at approximately ₹42,520 lakhs, while the options segment exhibited an enormous notional value of ₹2,251.25 crores, underscoring the significant interest in hedging and speculative strategies.
The underlying stock price closed at ₹1,088, marking a new 52-week low of ₹1,081.7 during the session. The stock has underperformed its sector by 0.51% on the day and has declined by 3.61% over the past three consecutive trading days. Notably, the weighted average traded price skewed towards the lower end of the day’s range, indicating selling pressure and bearish sentiment among investors.
Technical Indicators and Market Sentiment
Info Edge is currently trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. The delivery volume on 19 Feb was 6.31 lakh shares, which is 42.6% lower than the five-day average delivery volume, suggesting waning investor participation in the cash segment. Despite this, the stock remains sufficiently liquid, with a trade size capacity of approximately ₹4.6 crore based on 2% of the five-day average traded value.
The company’s Market Capitalisation stands at ₹70,587.07 crore, categorising it as a mid-cap stock. However, the MarketsMOJO Mojo Score has deteriorated to 43.0, with the Mojo Grade downgraded from Hold to Sell as of 1 Jul 2025. The Market Cap Grade remains low at 2, reflecting concerns over the stock’s valuation and momentum.
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Interpreting the Open Interest Surge
The increase in open interest amid a falling stock price often indicates that new positions are being initiated rather than existing ones being squared off. In Info Edge’s case, the 11.47% rise in OI alongside a price decline suggests that traders may be building fresh short positions or hedging existing long exposures. This is consistent with the stock’s recent underperformance and technical weakness.
Moreover, the substantial notional value in options points to active use of derivatives for strategic positioning. Market participants might be employing put options to protect downside risk or engaging in complex option strategies to capitalise on expected volatility. The futures volume and value also highlight that directional bets are being placed, possibly anticipating further downside or a near-term correction.
Sector and Benchmark Comparison
While Info Edge has declined by 0.53% on the day, the broader E-Retail/E-Commerce sector has marginally gained 0.10%, and the Sensex has advanced 0.55%. This relative underperformance emphasises the stock’s current weakness compared to its peers and the overall market. Investors should note that the sector’s resilience contrasts with Info Edge’s deteriorating technical and fundamental outlook.
The downgrade in Mojo Grade from Hold to Sell reflects a reassessment of the company’s prospects, factoring in valuation pressures, competitive challenges, and subdued investor sentiment. The low Market Cap Grade further signals caution for mid-cap investors seeking stability and growth.
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Implications for Investors and Traders
The current derivatives activity in Info Edge suggests a cautious stance among market participants. The rising open interest amid falling prices typically signals that bearish bets are being placed or hedges are being increased. Traders should be wary of potential further downside in the near term, especially given the stock’s failure to hold key moving averages and declining delivery volumes.
Long-term investors may want to reassess their exposure in light of the downgrade to a Sell rating and the deteriorating momentum indicators. The stock’s liquidity remains adequate for institutional trades, but the prevailing sentiment and technicals do not favour aggressive accumulation at this stage.
Conversely, short-term traders might find opportunities in volatility and directional plays, utilising options and futures to capitalise on expected price swings. Monitoring open interest trends alongside volume and price action will be critical to gauge shifts in market positioning and sentiment.
Outlook and Conclusion
Info Edge (India) Ltd’s recent surge in open interest amidst a downtrend highlights a complex market environment where participants are actively repositioning. The stock’s technical weakness, combined with a downgrade in fundamental scores, points to a challenging near-term outlook. Investors should remain vigilant and consider alternative opportunities within the E-Retail and broader sectors that exhibit stronger momentum and more favourable ratings.
As always, a disciplined approach to risk management and thorough analysis of derivatives data can provide valuable insights into market sentiment and potential price trajectories.
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