Open Interest and Volume Dynamics
The latest data reveals that the open interest (OI) in Info Edge’s futures and options contracts rose from 48,369 to 54,487 contracts, an increase of 6,118 contracts or 12.65% on 13 Feb 2026. This surge in OI was accompanied by a total volume of 72,145 contracts traded, indicating robust participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹50,617 lakhs, while the options segment's notional value stood at an astronomical ₹26,223.66 crores, culminating in a combined derivatives market value of ₹56,168.69 lakhs.
Such a rise in open interest alongside strong volume typically suggests that new positions are being initiated rather than existing ones being squared off. This is a critical signal for market analysts as it often precedes significant price movements or reflects a shift in market sentiment.
Price Action and Technical Context
Info Edge’s stock price has been under pressure, falling by 4.92% over the past three trading sessions and closing at an intraday low of ₹1,104.2 on 13 Feb 2026, marking a new 52-week low. The weighted average price for the day was closer to the low end of the range, indicating selling pressure throughout the session. Furthermore, the stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – underscoring a bearish technical setup.
Investor participation appears to be waning, with delivery volumes on 12 Feb falling by 18.38% to 12.21 lakh shares compared to the five-day average. This decline in delivery volume suggests that long-term holders may be reducing exposure or that fresh buying interest is limited at current levels.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Market Positioning and Potential Directional Bets
The simultaneous increase in open interest and volume, coupled with a declining stock price, suggests that market participants may be building fresh short positions or hedging existing long exposures. The 12.65% rise in OI is significant given the stock’s mid-cap status and market cap of ₹71,949 crores, indicating that institutional players could be actively repositioning.
Given the stock’s underperformance relative to the sector and the broader Sensex, which declined by 1.39% and 1.14% respectively on the same day, the derivatives activity may reflect bearish sentiment. The Mojo Score of 43.0 and a recent downgrade from Hold to Sell on 1 July 2025 further reinforce the cautious stance among analysts and investors alike.
Moreover, the futures value of ₹50,617 lakhs and options value exceeding ₹26,223 crores highlight the substantial liquidity and interest in Info Edge’s derivatives, making it a focal point for traders seeking to capitalise on volatility or directional moves.
Sector and Broader Market Context
Info Edge operates within the E-Retail and E-Commerce sector, which has been experiencing mixed performance amid evolving consumer trends and competitive pressures. The stock’s 1-day return of -1.33% closely mirrors the sector’s decline, indicating that sector-wide factors may be influencing price action alongside company-specific developments.
Liquidity metrics suggest that the stock remains sufficiently liquid for sizeable trades, with a 2% threshold of the five-day average traded value supporting trade sizes up to ₹5.63 crores. This liquidity is crucial for derivatives traders who require efficient entry and exit points without significant market impact.
Holding Info Edge (India) Ltd from E-Retail/ E-Commerce? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Implications for Investors and Traders
The surge in open interest amid falling prices typically signals that traders are positioning for further downside or increased volatility. For investors, this may warrant caution, especially given the stock’s technical weakness and deteriorating fundamental outlook as reflected in the Mojo Grade downgrade to Sell.
Traders might consider monitoring the derivatives market closely for changes in put-call ratios, strike price concentrations, and expiry dynamics to better gauge market sentiment and potential price inflection points. The high notional value in options suggests that hedging activity or speculative bets are significant, which could lead to sharp moves around key expiry dates.
Long-term investors should weigh the current negative momentum against Info Edge’s market position and growth prospects in the E-Retail sector, while short-term traders may find opportunities in volatility-driven strategies given the active derivatives market.
Conclusion
Info Edge (India) Ltd’s recent open interest surge in derivatives, combined with a fresh 52-week low and declining investor participation, paints a picture of cautious or bearish market sentiment. The stock’s technical and fundamental indicators suggest that downside risks remain elevated in the near term. Market participants should remain vigilant to evolving volume and open interest patterns, which could provide early signals of a reversal or further decline.
Given the stock’s liquidity and active derivatives market, Info Edge remains a key focus for traders and investors seeking to navigate the complexities of the E-Retail sector amid a challenging market environment.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
