Open Interest Spike and Volume Dynamics
The latest data reveals that Mphasis’s open interest in derivatives jumped by 4,963 contracts, a substantial 19.72% increase from the previous tally of 25,161 to 30,124. This surge in OI was accompanied by a volume of 26,101 contracts, indicating strong participation in the futures and options market. The futures value stood at ₹95,337.63 lakhs, while the options segment contributed a massive ₹11,058.69 crores, culminating in a total derivatives value of approximately ₹96,921.72 lakhs.
This marked increase in open interest, coupled with elevated volumes, typically signals fresh capital inflows and new positions being established rather than mere unwinding of existing trades. Such activity often precedes directional moves in the underlying stock, as market participants position themselves for anticipated price changes.
Price and Trend Analysis
On the price front, Mphasis demonstrated resilience by reversing a two-day decline, gaining 1.15% on the day and outperforming its sector by 0.75%. The stock touched an intraday high of ₹2,889.90, a 3.25% rise from previous levels. Notably, the share price remains above its 50-day, 100-day, and 200-day moving averages, underscoring a sustained medium- to long-term uptrend. However, it is still trading below its 5-day and 20-day moving averages, indicating some short-term consolidation or profit-booking pressure.
The underlying value of the stock stood at ₹2,831, reflecting a healthy market capitalisation of ₹53,948.64 crores, categorising it as a mid-cap entity with considerable liquidity and investor interest.
Investor Participation and Delivery Volumes
Investor engagement has notably intensified, with delivery volumes on 21 January surging to 9.05 lakh shares, a remarkable 223.66% increase compared to the five-day average delivery volume. This spike in delivery volume suggests that investors are not merely trading on a speculative basis but are increasingly willing to hold shares, signalling confidence in the stock’s fundamentals and future prospects.
Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹4.57 crores based on 2% of the five-day average traded value. Such liquidity is crucial for institutional investors and large traders seeking to enter or exit positions without significant price impact.
This week's disclosed pick, a Large Cap from NBFC, comes with precise Target Price and analysis. Check if you're positioned right for this opportunity!
- - Precise target price set
- - Weekly selection live
- - Position check opportunity
Market Positioning and Directional Bets
The pronounced rise in open interest alongside strong volume suggests that market participants are actively positioning for a directional move in Mphasis. Given the stock’s recent price recovery and outperformance relative to the sector and Sensex, the increased OI likely reflects bullish bets, with traders expecting further upside potential.
Moreover, the stock’s mojo score has improved to 72.0, earning it a “Buy” grade from a previous “Hold” rating as of 19 January 2026. This upgrade reflects enhanced market sentiment and improved fundamentals, reinforcing the positive outlook. The mojo grade upgrade often attracts additional investor interest, further supporting price momentum.
However, the short-term technicals, with the stock trading below its 5-day and 20-day moving averages, suggest some caution. Traders may be awaiting confirmation of sustained upward momentum before committing larger positions. The interplay between rising open interest and these technical signals will be critical in determining the stock’s near-term trajectory.
Sector and Benchmark Comparison
In comparison, the Computers - Software & Consulting sector recorded a modest 0.61% gain, while the Sensex advanced by 0.19% on the same day. Mphasis’s 1.15% gain thus represents a clear outperformance, highlighting its relative strength within the sector and broader market. This relative strength is often a precursor to further gains, especially when supported by strong derivatives market activity.
Investors should also note the company’s mid-cap status, which typically entails higher volatility but also greater growth potential compared to large-cap peers. The market cap grade of 2 indicates moderate size and liquidity, suitable for investors seeking exposure to growth-oriented technology stocks with reasonable trading volumes.
Thinking about Mphasis Ltd.? Our real-time Verdict report breaks down everything – from financial health and peer comparison to technical signals and fair valuation for this mid-cap stock!
- - Real-time Verdict available
- - Financial health breakdown
- - Fair valuation calculated
Outlook and Investor Considerations
Given the current data, Mphasis appears poised for a potential upward move, supported by strong derivatives market positioning and improving fundamental scores. The increase in delivery volumes and sustained liquidity further bolster the case for investor confidence. However, short-term traders should monitor the stock’s behaviour around its 5-day and 20-day moving averages for signs of sustained momentum or possible retracement.
Investors should also consider broader market conditions and sectoral trends, as technology stocks can be sensitive to global economic cues and IT spending cycles. The recent upgrade in mojo grade to “Buy” and the robust open interest growth provide a compelling case for accumulation, especially for those with a medium- to long-term investment horizon.
In summary, the sharp rise in open interest and volume in Mphasis derivatives signals renewed optimism and active positioning by market participants. This, combined with positive price action and improved mojo ratings, suggests that Mphasis is attracting fresh interest as a growth-oriented mid-cap stock within the software and consulting space.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
