One 97 Communications Ltd Sees Sharp Open Interest Surge Amid Price Weakness

Open Interest and Volume Dynamics

On 25 Sep 2026, One 97 Communications Ltd (symbol: PAYTM) recorded an open interest (OI) of 74,092 contracts in its derivatives, marking a substantial increase of 9,336 contracts or 14.42% compared to the previous OI of 64,756. This rise in OI is accompanied by a total volume of 1,23,631 contracts traded, indicating robust participation in the futures and options market.

The futures segment alone accounted for a value of approximately ₹1,45,824 lakhs, while the options segment's notional value was significantly higher at ₹1,39,902.63 crores, culminating in a combined derivatives value of ₹1,60,663.15 lakhs. Such elevated volumes and open interest levels suggest that traders are actively repositioning, possibly anticipating volatility or directional moves in the underlying stock, which closed at ₹1,672 on the day.

Price Performance and Market Context

Despite the surge in derivatives activity, the underlying stock underperformed its sector and broader benchmarks. PAYTM declined by 3.64% on the day, underperforming the Financial Technology sector by 3.32% and the Sensex by 3.69% (Sensex was up 0.05%, but PAYTM’s sector was down 0.31%). The stock has been on a downward trajectory for three consecutive sessions, losing 7.73% over this period. It opened with a gap down of 3.45% and touched an intraday low of ₹1,674, trading within a narrow range of just ₹1.8, with heavier volume concentrated near the day’s low.

Technical indicators reveal a mixed picture: the stock price remains above its 50-day, 100-day, and 200-day moving averages, signalling longer-term support, yet it trades below the 5-day and 20-day averages, reflecting short-term weakness. Delivery volumes have risen sharply, with 19.64 lakh shares delivered on 24 Sep, a 17.76% increase over the five-day average, indicating rising investor participation despite the price decline.

Interpreting the Open Interest Surge

The 14.42% increase in open interest amid falling prices suggests that fresh positions are being established rather than existing ones being squared off. This pattern often indicates that traders are either building short positions expecting further downside or accumulating long positions as a hedge or for a potential rebound. Given the stock’s recent underperformance and the concentration of volume near the lows, the market sentiment appears cautious but active.

Moreover, the substantial notional value in options points to increased hedging activity or speculative directional bets. The elevated futures value also confirms that institutional and retail participants are engaging in leveraged plays, possibly anticipating volatility around upcoming corporate developments or sectoral shifts in the fintech space.

Market Positioning and Investor Sentiment

One 97 Communications Ltd’s Mojo Score stands at 70.0, reflecting a positive outlook with a Buy grade, upgraded from Hold as of 31 Aug 2026. This upgrade signals improved fundamentals and market positioning, despite the short-term price weakness. The company’s mid-cap status with a market capitalisation of ₹1,07,437.23 crores places it in a segment where liquidity and volatility often attract active trading and derivative interest.

The rising delivery volumes and sustained open interest growth indicate that investors are not shying away from the stock, even as it faces downward pressure. This could imply that market participants are positioning for a potential turnaround or are using derivatives to manage risk amid uncertain macroeconomic or sector-specific factors.

Technical and Fundamental Outlook

Technically, the stock’s ability to hold above major moving averages provides a cushion against deeper declines, while the short-term moving averages suggest a need for consolidation or a corrective phase. The narrow intraday trading range and volume concentration near lows may indicate a temporary bottoming process or accumulation by informed investors.

Fundamentally, the upgrade to a Buy grade by MarketsMOJO reflects confidence in the company’s growth prospects within the fintech sector, which continues to expand rapidly in India. The company’s strategic initiatives, product diversification, and improving financial metrics underpin this positive stance.

Implications for Investors

For investors, the surge in open interest combined with the recent price weakness presents a nuanced scenario. The increased derivatives activity suggests that the market is bracing for potential volatility or a directional move. Those with a bullish outlook may view the current dip and rising delivery volumes as an opportunity to accumulate, supported by the Buy rating and positive mojo score.

Conversely, cautious investors might interpret the open interest rise amid falling prices as a warning sign of further downside risk, especially given the short-term moving averages’ bearish stance. Active traders could consider monitoring option chain data and futures positioning closely to gauge shifts in sentiment and hedge accordingly.

Overall, the derivatives market activity in One 97 Communications Ltd highlights the importance of combining technical, fundamental, and market positioning analyses to make informed decisions in a dynamic fintech environment.

Conclusion

One 97 Communications Ltd’s recent open interest surge in derivatives amid a three-day price decline underscores a complex interplay of investor sentiment and market positioning. While the stock faces short-term headwinds, the underlying fundamentals and upgraded mojo grade suggest resilience and potential for recovery. Investors should remain vigilant to evolving volume and open interest patterns as indicators of future directional moves in this mid-cap fintech stock.

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