One 97 Communications Ltd Sees Sharp Open Interest Surge Amid Mixed Price Action

Open Interest and Volume Dynamics

The open interest (OI) in One 97 Communications Ltd’s derivatives rose sharply from 37,461 contracts to 45,226 contracts, an increase of 7,765 contracts or 20.73% on the latest trading day. This notable rise in OI was accompanied by a total volume of 79,026 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹1,82,938 lakhs, while the options segment’s notional value was substantially higher at ₹55,636.7 crores, reflecting the stock’s active derivatives market.

The combined derivatives value stood at ₹1,89,033 lakhs, underscoring the significant liquidity and interest in the stock’s contracts. The underlying stock price closed at ₹1,225, having traded within a range of ₹1,217.6 to ₹1,303.8 during the day, with the weighted average price skewed towards the lower end of this range. This price action, coupled with rising OI, suggests that market participants are positioning themselves for potential volatility or directional moves.

Price Performance and Moving Averages

Despite the surge in derivatives activity, One 97 Communications Ltd underperformed its Financial Technology sector by 2.94% and posted a 1-day return of -4.01%, lagging behind the sector’s -0.58% and the Sensex’s -0.28% declines. The stock’s intraday high of ₹1,303.8 represented a 3.44% gain from the previous close, but it also touched a low of ₹1,217.6, down 3.4%, reflecting intra-day volatility.

Technically, the stock remains above its 200-day moving average, a long-term bullish indicator, but trades below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term weakness. This mixed technical picture may explain the divergent market sentiment and the increased open interest as traders hedge or speculate on potential directional shifts.

Investor Participation and Liquidity Considerations

Investor participation appears to be waning, with delivery volumes on 22 Jan falling by 25.72% compared to the 5-day average, registering at 10.17 lakh shares. This decline in delivery volume suggests reduced conviction among long-term holders, possibly contributing to the stock’s recent underperformance.

However, liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting trade sizes up to ₹8.02 crore based on 2% of the 5-day average traded value. This liquidity profile is favourable for institutional investors and active traders looking to enter or exit positions without significant market impact.

Market Positioning and Directional Bets

The sharp increase in open interest alongside a high volume of contracts suggests that traders are actively repositioning in One 97 Communications Ltd derivatives. The rise in OI typically indicates that new money is entering the market, which can be interpreted as a sign of conviction in the prevailing trend or anticipation of a significant price move.

Given the stock’s recent underperformance and the skew of volume towards lower prices, it is plausible that market participants are building protective put positions or speculating on further downside. Conversely, the intraday high and the stock’s position above the 200-day moving average may attract bullish bets from longer-term investors expecting a rebound.

The options market’s substantial notional value points to active hedging and speculative strategies, with traders likely employing a mix of calls and puts to manage risk or capitalise on expected volatility. The divergence between futures and options values also highlights the complexity of market sentiment, with some participants favouring directional futures contracts while others prefer the asymmetric payoff profiles of options.

Mojo Score and Analyst Ratings

One 97 Communications Ltd currently holds a Mojo Score of 62.0, categorised as a Hold rating, reflecting a cautious stance by analysts. This represents a downgrade from a previous Buy rating as of 24 Dec 2025, signalling a reassessment of the company’s near-term prospects amid evolving market conditions. The company’s market capitalisation stands at ₹77,400.71 crore, placing it firmly in the mid-cap segment of the Financial Technology sector.

The downgrade and the Hold grade suggest that while the company maintains solid fundamentals, investors should be mindful of the recent volatility and mixed technical signals. The sector’s overall performance and broader market trends will also play a critical role in shaping the stock’s trajectory in the coming weeks.

Outlook and Investor Takeaways

Investors should approach One 97 Communications Ltd with measured caution given the recent surge in derivatives activity and the stock’s underperformance relative to its sector and benchmark indices. The increased open interest signals that market participants are actively positioning for potential price swings, which could translate into heightened volatility in the near term.

While the stock’s position above the 200-day moving average offers some long-term support, the weakness across shorter-term moving averages and falling delivery volumes indicate a lack of strong conviction among investors. This environment favours nimble traders who can capitalise on short-term directional moves, while long-term investors may prefer to monitor developments closely before committing additional capital.

Given the mixed signals, it is advisable to keep a close eye on upcoming earnings, sectoral trends, and broader market cues that could influence the stock’s momentum. The derivatives market activity provides valuable insight into institutional sentiment and potential price trajectories, making it an essential factor for informed decision-making.

Summary

In summary, One 97 Communications Ltd’s derivatives market has experienced a pronounced increase in open interest and volume, reflecting active repositioning by traders amid a backdrop of price volatility and technical uncertainty. The stock’s Hold rating and Mojo Score of 62.0 underscore a cautious outlook, with investors advised to weigh the risks and opportunities carefully. The evolving market dynamics warrant close monitoring as the company navigates a challenging yet potentially rewarding phase in the Financial Technology sector.

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