One 97 Communications Ltd Sees Notable Surge in Derivatives Open Interest Amid Mixed Price Action

Open Interest and Volume Dynamics

The derivatives market for One 97 Communications Ltd, trading under the symbol PAYTM, has experienced a pronounced surge in open interest (OI), rising from 41,968 contracts to 46,277 contracts, an increase of 4,309 contracts or 10.27% as of the latest data. This expansion in OI is accompanied by a daily volume of 31,949 contracts, reflecting sustained trading interest in the stock’s futures and options.

The futures segment alone accounts for a notional value of approximately ₹1,15,218 lakhs, while the options segment commands a substantially larger notional value of ₹19,279.64 crores, underscoring the prominence of options trading in shaping market sentiment for PAYTM. The combined derivatives value stands at ₹1,16,240.29 lakhs, indicating robust liquidity and active participation from institutional and retail investors alike.

Price Performance and Moving Averages

Despite the surge in derivatives activity, the underlying stock price has shown a cautious tone. PAYTM’s share price currently trades at ₹1,308, having declined by 0.48% on the day, mirroring the sector’s performance which also fell by 0.48%, and slightly underperforming the Sensex’s 0.41% drop. The stock has been on a three-day losing streak, cumulatively falling by 2.28%, reflecting some profit-taking or cautious positioning by investors.

Technically, the stock remains above its 50-day, 100-day, and 200-day moving averages, which typically signals a longer-term bullish trend. However, it is trading below its 5-day and 20-day moving averages, suggesting short-term weakness or consolidation. This mixed technical picture may be contributing to the nuanced market positioning observed in the derivatives market.

Investor Participation and Liquidity Considerations

Investor participation in the cash segment appears to be waning, with delivery volumes on 26 Dec falling sharply by 67.89% to 5.08 lakh shares compared to the five-day average. This decline in delivery volume indicates reduced conviction among long-term holders or a shift towards trading in derivatives rather than outright equity positions.

Nevertheless, liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of up to ₹7.15 crore based on 2% of the five-day average traded value. This liquidity profile supports active derivatives trading and allows institutional players to build or unwind positions without significant market impact.

Market Positioning and Directional Bets

The notable increase in open interest, coupled with steady volumes, suggests that market participants are actively repositioning themselves in anticipation of future price movements. The rise in OI often indicates fresh capital entering the market, either through new long or short positions, rather than merely the closing of existing trades.

Given the recent price decline and the stock’s position relative to short-term moving averages, it is plausible that some traders are taking bearish stances, possibly through put options or short futures. Conversely, the sustained open interest and the stock’s retention above longer-term moving averages may attract bullish investors seeking to capitalise on potential rebounds or sector tailwinds.

Options activity, with its substantial notional value, further points to complex strategies such as spreads, straddles, or hedging being employed by sophisticated investors. This complexity in positioning underscores the importance of monitoring derivatives data to gauge market sentiment beyond surface price movements.

Fundamental and Market Context

One 97 Communications Ltd operates within the rapidly evolving Financial Technology sector, which continues to attract investor interest due to digital payment adoption and fintech innovation. The company’s market capitalisation stands at ₹83,715.69 crore, categorising it as a mid-cap stock with considerable institutional following.

MarketsMOJO assigns PAYTM a Mojo Score of 62.0 with a current Mojo Grade of Hold, downgraded from Buy as of 24 Dec 2025. This reflects a cautious stance based on recent performance metrics and market conditions. The Market Cap Grade of 2 further indicates moderate market capitalisation strength relative to peers.

Investors should weigh these fundamental assessments alongside the evolving derivatives market activity to form a comprehensive view of PAYTM’s near-term prospects.

Implications for Investors

The surge in derivatives open interest for One 97 Communications Ltd signals a pivotal moment for investors to closely monitor market developments. The mixed technical signals and declining short-term price momentum suggest caution, while the sustained long-term moving average support and active options market hint at potential opportunities for strategic positioning.

Investors with a bullish outlook may consider accumulating on dips or employing option strategies to capitalise on anticipated sector growth. Conversely, those wary of near-term volatility might explore hedging techniques or await clearer directional cues before committing additional capital.

Overall, the derivatives market activity provides valuable insight into evolving market sentiment and should be integrated with fundamental analysis and broader sector trends to inform investment decisions.

Summary

One 97 Communications Ltd’s recent 10.3% increase in open interest, alongside steady volumes and a sizeable notional value in options, highlights active repositioning by market participants amid a cautious price environment. The stock’s technical positioning and fundamental metrics suggest a Hold rating, reflecting balanced risks and opportunities. Investors are advised to monitor derivatives data closely as a barometer of market sentiment and to consider diversified strategies in navigating the evolving fintech landscape.

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