One 97 Communications Ltd Sees Sharp Open Interest Surge Amid Derivatives Activity

Open Interest and Volume Dynamics

The latest data reveals that open interest (OI) in One 97 Communications Ltd’s derivatives rose sharply to 46,592 contracts from 40,447, marking an increase of 6,145 contracts or 15.19% on 30 January 2026. This surge in OI was accompanied by a robust volume of 62,033 contracts traded, indicating strong participation from traders and investors in the derivatives market.

In monetary terms, the futures segment alone accounted for ₹87,636.81 lakhs, while the options segment reflected a substantial notional value of approximately ₹45,069 crore. The combined derivatives value stood at ₹98,587.59 lakhs, underscoring the significant capital flow and interest in the stock’s derivatives instruments.

Price Performance and Market Context

Despite the increased derivatives activity, the underlying stock price of One 97 Communications Ltd (symbol: PAYTM) has underperformed its sector and benchmark indices. The stock closed at ₹1,134, down 2.95% on the day, underperforming the Financial Technology sector by 2.43% and the Sensex by 2.58% on the same session. The stock has been on a downward trajectory for two consecutive days, losing 3.75% over this period.

Intraday, the stock touched a low of ₹1,112.20, a decline of 4.79%, with the weighted average price skewed towards the lower end of the day’s range, suggesting selling pressure. Notably, the stock’s price remains above its 200-day moving average but below its 5-day, 20-day, 50-day, and 100-day moving averages, indicating a mixed technical picture with short- to medium-term bearish momentum.

Investor participation appears to be waning, as delivery volumes on 29 January fell by 28.73% compared to the five-day average, signalling reduced conviction among long-term holders. However, liquidity remains adequate, with the stock’s traded value supporting sizeable trade sizes up to ₹16.86 crore, ensuring smooth execution for active traders.

Interpreting the Open Interest Surge

The 15.2% increase in open interest alongside elevated volumes suggests fresh positions are being established rather than existing ones being squared off. This typically indicates that market participants are either building directional bets or hedging strategies in anticipation of near-term price movements.

Given the stock’s recent price weakness and underperformance relative to its sector and benchmark, the rise in open interest could reflect increased bearish positioning. Traders may be buying put options or initiating short futures contracts to capitalise on expected further declines or to hedge existing long exposures.

Conversely, some investors might be using options strategies such as spreads or collars to manage risk amid heightened volatility. The substantial notional value in options contracts points to active hedging and speculative activity, which often precedes significant price moves.

Market Positioning and Sentiment

One 97 Communications Ltd’s Mojo Score currently stands at 68.0, with a Mojo Grade of Hold, downgraded from Buy on 24 December 2025. This reflects a cautious stance by analysts, factoring in recent price softness and mixed technical signals. The company’s market capitalisation is ₹72,410.83 crore, categorising it as a mid-cap stock within the Financial Technology sector.

The downgrade in Mojo Grade aligns with the observed decline in investor participation and the stock’s inability to sustain gains above key moving averages. The sector itself has been facing headwinds, with the stock’s 1-day return of -3.10% lagging the sector’s -0.55% and Sensex’s -0.37%, highlighting relative weakness.

Such market positioning changes often prompt traders to reassess risk-reward profiles, leading to increased derivatives activity as a tool for tactical exposure or protection.

Technical and Fundamental Outlook

Technically, the stock’s position above the 200-day moving average provides some long-term support, but the failure to hold above shorter-term averages signals potential for further downside or consolidation. The falling delivery volumes suggest that long-term investor conviction is weakening, which could exacerbate volatility in the near term.

Fundamentally, One 97 Communications Ltd remains a significant player in the fintech space, but the current market environment and sector challenges have tempered enthusiasm. The Hold rating reflects a wait-and-watch approach, with investors advised to monitor upcoming earnings, sector developments, and broader market trends before committing fresh capital.

Investor Takeaways

For investors and traders, the recent surge in open interest in One 97 Communications Ltd’s derivatives signals a period of heightened activity and potential volatility. The increased OI combined with falling prices and reduced delivery volumes suggests a cautious or bearish sentiment prevailing in the market.

Those holding long positions should consider protective strategies such as buying puts or employing collars to mitigate downside risk. Conversely, traders with a bearish outlook may find opportunities in short futures or put options, but should remain vigilant to sudden reversals given the stock’s long-term support levels.

Monitoring the evolution of open interest alongside price and volume trends will be crucial in gauging the sustainability of current moves and identifying potential inflection points.

Conclusion

One 97 Communications Ltd’s derivatives market activity reflects a complex interplay of positioning, sentiment, and technical factors. The 15.2% rise in open interest amid a weakening price trend highlights increased market engagement and a possible shift towards defensive or bearish stances.

While the stock retains long-term support above the 200-day moving average, short-term indicators and reduced investor participation counsel caution. Investors should closely track upcoming corporate developments and sector dynamics to better navigate this evolving landscape.

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