Open Interest and Volume Dynamics
The latest data reveals that open interest (OI) in Jio Financial Services Ltd’s derivatives rose sharply from 1,27,045 contracts to 1,47,821 contracts, an increase of 20,776 contracts or 16.35%. This substantial rise in OI was accompanied by a futures volume of 68,419 contracts, indicating robust trading activity. The futures value stood at approximately ₹2,32,825.7 lakhs, while the options segment exhibited an enormous notional value of ₹19,27,27,599.57 lakhs, culminating in a total derivatives value of ₹2,37,134.18 lakhs.
Such a pronounced increase in open interest, coupled with high volume, often suggests that fresh positions are being established rather than existing ones being squared off. This can be indicative of a directional bet by market participants, who may be positioning for a significant move in the underlying stock price.
Price Performance and Moving Averages
Despite the surge in derivatives activity, Jio Financial Services’ spot price has shown weakness. The stock closed at ₹257, underperforming its sector by 0.49% and lagging behind the Sensex’s 0.44% gain on the same day. Notably, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend and bearish technical setup.
Investor participation has risen, with delivery volumes on 20 Feb reaching 76.94 lakh shares, an 18.07% increase over the five-day average delivery volume. This heightened participation amid falling prices suggests that investors may be offloading shares or that short sellers are increasing their stakes.
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Market Positioning and Sentiment
The increase in open interest alongside declining prices suggests that market participants are likely building short positions or hedging existing long exposure. The stock’s Mojo Score of 37.0 and a downgrade from Hold to Sell on 9 Jan 2026 further reinforce the bearish sentiment prevailing among analysts and investors alike.
Jio Financial Services, classified as a large-cap NBFC with a market capitalisation of ₹1,63,815.76 crores, is currently graded a 1 for market cap, indicating its significant size but also highlighting the challenges it faces in sustaining upward momentum. The day’s price change of -0.31% and the stock’s underperformance relative to its sector and benchmark indices underscore the cautious stance adopted by traders.
Technical and Fundamental Implications
Trading below all major moving averages typically signals a bearish trend, and the rising open interest confirms that this trend is attracting increased speculative interest. The delivery volume increase suggests that investors are actively participating in the stock, but the net effect appears to be selling pressure rather than accumulation.
From a fundamental perspective, the downgrade to a Sell rating by MarketsMOJO’s Investment Committee reflects concerns over the company’s near-term prospects. The combination of technical weakness and deteriorating fundamental outlook may prompt investors to reassess their exposure to Jio Financial Services.
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Outlook and Investor Takeaways
Investors should approach Jio Financial Services with caution given the current technical and fundamental signals. The surge in open interest and volume points to increased speculative activity, but the prevailing downtrend and negative rating change suggest that downside risks remain elevated.
For traders, the derivatives market activity could offer opportunities to capitalise on volatility, but the directional bias appears skewed towards bearishness. Long-term investors may prefer to monitor the stock for signs of a trend reversal or fundamental improvement before increasing exposure.
Liquidity remains adequate, with the stock supporting trade sizes of up to ₹5.54 crores based on 2% of the five-day average traded value, ensuring that institutional and retail investors can transact without significant market impact.
In summary, the combination of a 16.35% rise in open interest, underperformance relative to sector and benchmark indices, and a downgrade to Sell rating paints a cautious picture for Jio Financial Services in the near term.
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