Nuvama Wealth Management Sees Sharp Open Interest Surge Amidst Weak Price Action

Open Interest and Volume Dynamics

On 16 Feb 2026, Nuvama’s open interest (OI) in futures and options contracts rose sharply to 11,494 from 10,288 the previous day, marking an increase of 1,206 contracts or 11.72%. This rise in OI was accompanied by a total volume of 13,150 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹20,214.79 lakhs, while options contracts contributed a staggering ₹6,577.98 crores in notional value, culminating in a combined derivatives market value of ₹21,536.11 lakhs.

The underlying stock price, however, has been under pressure, trading at ₹1,286 and showing a consistent downtrend over the past four sessions with a cumulative loss of 6.96%. The stock opened sharply lower by 3.09% on the day, hitting an intraday low of ₹1,235.4, down 4.95% from the previous close. Notably, the weighted average price of traded volumes clustered near the day’s low, signalling selling dominance.

Market Positioning and Sentiment

The simultaneous rise in open interest and falling prices typically points to fresh short positions being established or existing shorts being added to, reflecting bearish sentiment among derivatives traders. This is further corroborated by the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a sustained downtrend.

Investor participation appears to be waning, with delivery volumes on 13 Feb falling by nearly 40% compared to the five-day average, suggesting reduced long-term conviction. Despite this, liquidity remains adequate, with the stock’s traded value supporting sizeable trades up to ₹1.01 crore without significant market impact.

Implications for Directional Bets

The increase in open interest amid falling prices suggests that traders are positioning for further downside in Nuvama Wealth Management’s shares. This is a classic indication of bearish bets being placed through derivatives, as fresh shorts or put option buyers enter the market to capitalise on expected declines.

Given the stock’s underperformance relative to its sector, which fell only 0.12% compared to Nuvama’s 0.72% loss on the day, and the broader Sensex’s positive return of 0.43%, the divergence highlights company-specific weakness. The downgrade in the Mojo Grade from Hold to Sell on 11 Feb 2026, with a current Mojo Score of 48.0, further reinforces the cautious stance among analysts and investors alike.

Market participants should note that the stock’s market capitalisation stands at ₹23,074 crore, categorising it as a small-cap entity within the capital markets sector. This size often entails higher volatility and sensitivity to sectoral and macroeconomic developments.

Technical and Fundamental Outlook

Technically, the stock’s failure to hold above key moving averages and the clustering of volume near intraday lows indicate persistent selling pressure. The declining delivery volumes suggest that long-term holders may be reducing exposure, while short-term traders increase bearish positions.

Fundamentally, the downgrade to a Sell rating by MarketsMOJO reflects concerns over the company’s near-term prospects. The current Mojo Grade of 48.0 is below the threshold for a Hold, signalling deteriorating fundamentals or valuation concerns. Investors should weigh these factors carefully before initiating fresh positions.

Investor Takeaway

For investors and traders, the current derivatives activity in Nuvama Wealth Management signals caution. The surge in open interest alongside falling prices is a warning sign that market participants expect further downside. Those holding long positions should consider risk management strategies, while short sellers may find the current environment favourable.

However, the stock’s liquidity and market cap suggest that it remains accessible for active trading, and any reversal in fundamentals or technical indicators could quickly alter market sentiment. Monitoring open interest trends, volume patterns, and price action will be critical in assessing the stock’s near-term trajectory.

In summary, Nuvama Wealth Management’s recent derivatives market behaviour reflects a bearish tilt, supported by technical weakness and a downgrade in analyst sentiment. Investors should remain vigilant and consider alternative opportunities within the capital markets sector that may offer better risk-reward profiles.

Unlock special upgrade rates for a limited period. Start Saving Now →