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 a notable increase in open interest (OI) in its derivatives contracts. The latest OI stood at 74,900 contracts, up from 64,756 the previous day, marking a robust 15.66% rise. This surge in OI was accompanied by a substantial volume of 1,34,087 contracts traded, indicating active participation from traders and investors in the futures and options market.

The combined futures and options value reached approximately ₹1,87,298.19 lakhs, with futures alone accounting for ₹1,71,333.04 lakhs and options contributing an astronomical ₹1,50,272.24 crores in notional value. The underlying stock price closed near ₹1,670, reflecting a narrow intraday trading range of just ₹2.2, but with a downward bias.

Such a spike in open interest alongside elevated volumes typically suggests fresh positions being established rather than existing ones being squared off. This can be indicative of increased conviction among market participants regarding the stock’s near-term directional movement.

Price Performance and Market Sentiment

Despite the surge in derivatives activity, the underlying stock price has underperformed its sector and broader market indices. On the day, PAYTM declined by 4.16%, significantly lagging the Financial Technology sector’s modest fall of 0.32% and the Sensex’s near-flat movement of -0.09%. The stock has been on a downward trajectory for three consecutive sessions, cumulatively losing 8.13% over this period.

Intraday, the stock opened with a gap down of 3.89% and touched a low of ₹1,665.90, down 4.01% from the previous close. The weighted average price suggests that most volume was traded near the day’s low, signalling selling pressure and cautious investor sentiment.

Technical indicators reveal that the stock price remains above its 50-day, 100-day, and 200-day moving averages, which typically act as support levels. However, it is trading below the short-term 5-day and 20-day moving averages, indicating near-term weakness and potential consolidation or correction.

Investor Participation and Liquidity

Investor engagement has risen notably, with delivery volumes on 24 Sep reaching 19.64 lakh shares, a 17.76% increase compared to the five-day average delivery volume. This suggests that despite recent price declines, investors are still willing to hold or accumulate shares, possibly anticipating a rebound or longer-term value realisation.

Liquidity remains adequate for sizeable trades, with the stock’s traded value supporting transaction sizes up to ₹12.53 crore based on 2% of the five-day average traded value. This level of liquidity is favourable for institutional investors and active traders looking to enter or exit positions without significant market impact.

Market Positioning and Potential Directional Bets

The sharp increase in open interest, coupled with rising volumes and delivery participation, points to a complex market positioning scenario. The rise in OI by over 10,000 contracts suggests that new bets are being placed, possibly reflecting divergent views among traders.

Given the stock’s recent price weakness and the concentration of volume near lows, one plausible interpretation is that some participants are initiating protective put positions or short futures to hedge against further downside. Conversely, the sustained delivery volumes and the stock’s position above key longer-term moving averages may indicate that other investors are accumulating shares, expecting a medium-term recovery.

This duality in market behaviour is typical in volatile mid-cap stocks within the fintech sector, where rapid changes in regulatory environment, competitive dynamics, and earnings outlook can trigger swift shifts in sentiment.

Mojo Score Upgrade and Analyst Outlook

Reflecting these evolving dynamics, One 97 Communications Ltd’s Mojo Score has improved to 70.0, earning a Buy grade as of 31 Aug 2026, upgraded from a previous Hold rating. This upgrade signals enhanced confidence in the company’s fundamentals and growth prospects within the fintech space.

The company’s market capitalisation stands at ₹1,06,718.63 crore, categorising it as a mid-cap stock with significant institutional interest. Analysts note that while short-term price action has been weak, the underlying business remains robust, supported by expanding digital payment adoption and diversified fintech offerings.

Implications for Investors

For investors and traders, the current open interest surge in One 97 Communications Ltd’s derivatives market offers both opportunities and risks. The elevated OI and volume suggest that the stock is attracting significant attention, potentially foreshadowing a major price move.

Those bullish on the company’s long-term prospects may view the recent price weakness as a buying opportunity, especially given the stock’s position above key moving averages and rising delivery volumes. Conversely, cautious investors might consider the increased derivatives activity as a sign of heightened volatility and hedge accordingly.

Monitoring the evolution of open interest, particularly in put and call options, alongside price action will be crucial to gauge whether the market consensus is shifting towards a sustained rally or further correction.

Conclusion

One 97 Communications Ltd’s recent surge in open interest amidst a backdrop of price decline and rising investor participation highlights a nuanced market environment. The derivatives market activity points to active repositioning and potential directional bets, reflecting both optimism and caution among market participants.

With a Buy grade upgrade and a solid mid-cap market capitalisation, the stock remains a key fintech name to watch. Investors should closely analyse ongoing volume and open interest trends, alongside fundamental developments, to make informed decisions in this dynamic segment.

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