One 97 Communications Ltd Falls 15.05%: 7 Key Factors Driving the Weekly Decline

Monday, 19 January 2026: Weak Start Amid Broader Market Decline

One 97 Communications Ltd opened the week at Rs.1,330.75, down 0.90% from the previous close, mirroring the Sensex’s 0.49% decline to 36,650.97. The stock’s volume was moderate at 74,230 shares, indicating cautious investor sentiment. The broader market weakness set the tone for the week, with the stock already showing signs of vulnerability relative to the benchmark.

Wednesday, 21 January 2026: Intraday Low and Surge in Derivatives Activity

The stock faced significant selling pressure on 21 January, hitting an intraday low of Rs.1,224. Closing at Rs.1,235.85, it declined 4.60% on the day, underperforming the Sensex’s 0.47% fall. This marked the third consecutive day of losses, with the stock down 8.47% over this period. Technical indicators showed the stock trading below its 5-day, 20-day, 50-day, and 100-day moving averages, though still above the 200-day average, signalling short- to medium-term weakness despite longer-term support.

Simultaneously, the derivatives market saw a sharp surge in open interest, rising 15.63% to 42,398 contracts, accompanied by a total volume of 68,103 contracts. The futures segment’s notional value was approximately ₹1,48,232.43 lakhs, while options turnover reached ₹48,319.90 crores. This spike in derivatives activity amid falling prices suggests increased speculative positioning, likely reflecting bearish bets or hedging strategies.

Thursday, 22 January 2026: Brief Recovery Amid Market Bounce

On 22 January, the stock rebounded modestly, gaining 2.03% to close at Rs.1,260.90, supported by a Sensex rise of 0.76% to 36,088.66. Volume was lower at 56,024 shares, suggesting the recovery was tentative. Despite this uptick, the stock remained below key moving averages except the 200-day, indicating that the short-term downtrend was not yet reversed.

Friday, 23 January 2026: Volatile Session with Heavy Trading and Mixed Derivatives Signals

The final trading day of the week was marked by extreme volatility and heavy value trading. One 97 Communications Ltd opened at Rs.1,261.90 and reached an intraday high of Rs.1,303.95 (+3.41%), but reversed sharply to hit an intraday low of Rs.1,140.75 (-9.53%), closing at this level. The stock underperformed its sector by 6.52% and the Sensex by 1.33%, closing at 35,609.90.

Trading volume surged to 9,80,252 shares, with a total traded value of approximately ₹10,098.28 crores, placing the stock among the most actively traded by value. The intraday volatility was high at 9.26%, reflecting investor uncertainty. Delivery volumes declined by 25.72% relative to the five-day average, indicating reduced long-term investor participation amid speculative trading.

Derivatives activity remained intense, with open interest surging 20.7% to 45,226 contracts and total volume reaching 79,026 contracts. Notional values were substantial, with futures at ₹1,82,938 lakhs and options at ₹55,636.7 crores. Call option activity was concentrated at the ₹1,300 strike for the 27 January expiry, with 17,188 contracts traded, signalling bullish positioning despite the price weakness. Conversely, put options saw heavy volumes at strikes near the current price, notably 1,200, 1,160, and 1,120, reflecting bearish sentiment and hedging.

Key Takeaways

Significant Underperformance: The stock’s 15.05% weekly decline far exceeded the Sensex’s 3.31% fall, highlighting company-specific challenges amid broader market weakness.

Volatility and Heavy Trading: The week’s final session saw extreme price swings and record value turnover, signalling heightened uncertainty and active repositioning by investors.

Derivatives Market Activity: Sharp increases in open interest and volume, alongside heavy call and put option trading, indicate mixed market sentiment with both bullish and bearish bets.

Technical Weakness: Trading below all short- and medium-term moving averages but above the 200-day average suggests a fragile near-term outlook with some long-term support.

Reduced Delivery Volumes: Declining delivery volumes point to waning long-term investor conviction, with speculative trading dominating recent sessions.

Mojo Rating Downgrade: The downgrade from Buy to Hold reflects a more cautious stance on the stock’s near-term prospects amid volatility and sector headwinds.

Sectoral Pressure: The Financial Technology sector’s mixed performance and regulatory uncertainties continue to weigh on One 97 Communications Ltd’s shares.

Conclusion

One 97 Communications Ltd’s week ending 23 January 2026 was marked by pronounced volatility, heavy trading volumes, and significant price declines. Despite some technical support at the 200-day moving average, the stock’s underperformance relative to the Sensex and its sector, combined with intense derivatives activity, underscores a market grappling with uncertainty and mixed sentiment. The downgrade to a Hold rating by MarketsMOJO further signals caution among investors. Going forward, monitoring open interest trends, delivery volumes, and price action will be critical to understanding the stock’s near-term trajectory amid evolving fintech sector dynamics.

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