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

Open Interest and Volume Dynamics

The latest data reveals that open interest (OI) in PAYTM futures and options jumped from 35,868 to 50,670 contracts, marking an increase of 14,802 contracts or 41.27%. This sharp rise in OI was accompanied by a total volume of 80,448 contracts traded on the day, indicating heightened activity and investor interest in the stock’s derivatives.

In terms of value, futures contracts accounted for approximately ₹76,655 lakhs, while options contracts represented a staggering ₹55,137,987,571 lakhs, culminating in a combined derivatives value of ₹87,404.65 lakhs. The underlying stock price closed near ₹1,063, reflecting a notable gap down opening and sustained weakness throughout the session.

Price Performance and Market Context

Despite the surge in derivatives activity, PAYTM’s stock price underperformed significantly, falling 7.28% on the day compared to a modest 0.28% gain in the Financial Technology sector and a 0.59% rise in the Sensex. The stock has been on a losing streak for four consecutive sessions, shedding 9.59% over this period. Intraday, it touched a low of ₹1,051.10, down 8.39%, with the weighted average price skewed towards the lower end of the day’s range, suggesting selling pressure.

Technically, PAYTM is trading below all major moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating a bearish trend. Rising delivery volumes, which increased by 6.1% to 5.32 lakh shares on 24 April compared to the five-day average, point to growing investor participation, albeit on the sell side.

Interpreting the Open Interest Surge

The pronounced increase in open interest amid falling prices suggests that new positions are being established rather than existing ones being squared off. This can imply that market participants are either building fresh short positions anticipating further declines or accumulating long positions as a hedge or for a potential rebound.

Given the stock’s recent underperformance and technical weakness, the more plausible scenario is that bearish bets are being placed aggressively. The gap down opening and the volume concentration near the day’s low reinforce the notion of dominant selling pressure. However, the sizeable open interest in options, particularly, may also indicate complex strategies such as protective puts or spread trades designed to manage risk or capitalise on volatility.

Market Positioning and Investor Sentiment

One 97 Communications Ltd’s mid-cap status with a market capitalisation of ₹68,098.07 crores places it in a segment where institutional and retail investors alike actively trade derivatives to express directional views or hedge exposures. The recent upgrade in its Mojo Grade from Sell to Hold on 8 April 2026, with a current Mojo Score of 52.0, reflects a cautious stance by analysts, acknowledging some stabilisation but not yet signalling a clear buy opportunity.

The divergence between the improving grade and the stock’s ongoing price weakness may be contributing to the mixed positioning seen in the derivatives market. Investors could be positioning for a potential turnaround while simultaneously protecting against further downside, resulting in elevated open interest and volume.

Liquidity and Trading Implications

Liquidity remains adequate for PAYTM, with the stock’s traded value supporting a trade size of approximately ₹2.81 crores based on 2% of the five-day average traded value. This ensures that both institutional and retail traders can execute sizeable orders without significant market impact, facilitating the active derivatives market observed.

For traders, the current environment suggests caution. The rising open interest combined with falling prices typically signals strengthening bearish momentum. However, the presence of large option values and the stock’s recent Mojo Grade upgrade imply that some investors may be anticipating a reversal or are employing hedging strategies.

Outlook and Strategic Considerations

Investors and traders should closely monitor the evolution of open interest and price action in the coming sessions. A sustained increase in open interest accompanied by further price declines would confirm bearish conviction, potentially signalling additional downside risk. Conversely, if prices stabilise or rebound while open interest remains elevated, it may indicate a shift in sentiment or the unwinding of short positions.

Given the stock’s current technical weakness and sector underperformance, a prudent approach would be to await clearer directional signals before initiating fresh long positions. Meanwhile, those with existing exposure might consider protective strategies such as stop-loss orders or option hedges to mitigate risk.

Overall, the derivatives market activity in One 97 Communications Ltd highlights the nuanced positioning of investors navigating a volatile environment in the fintech space, balancing between caution and opportunism.

Summary

One 97 Communications Ltd’s recent surge in open interest by 41.27% to over 50,000 contracts, alongside heavy volume and falling prices, underscores a complex market scenario. While the stock continues to trade below key moving averages and has underperformed its sector and benchmark indices, the elevated derivatives activity suggests active positioning, likely skewed towards bearish bets but with some hedging strategies in play. Investors should remain vigilant and consider both technical and fundamental factors before making directional calls on this mid-cap fintech player.

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