One 97 Communications Ltd Sees Sharp Open Interest Surge Amidst Mixed Technical Signals

Open Interest and Volume Dynamics

On 23 January 2026, One 97 Communications Ltd (symbol: PAYTM) recorded an open interest (OI) of 41,966 contracts, up from 37,461 the previous day, marking an increase of 4,505 contracts or 12.03%. This rise in OI was accompanied by a trading volume of 40,790 contracts, indicating robust participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹98,858.85 lakhs, while the options segment's notional value soared to ₹28,867.07 crores, culminating in a total derivatives value exceeding ₹1,01,908.11 lakhs.

The underlying stock price closed at ₹1,286, having outperformed its Financial Technology sector by 2.15% on the day. The stock has gained 4.09% over the past two consecutive sessions, with an intraday high touching ₹1,303.80, a 3.44% rise from the previous close. Despite this, the stock remains below its short-term moving averages (5-day, 20-day, and 50-day), though it is trading above its 100-day and 200-day moving averages, suggesting a mixed technical picture.

Investor Participation and Liquidity Considerations

Interestingly, delivery volume on 22 January fell sharply by 25.72% to 10.17 lakh shares compared to the five-day average, signalling a decline in long-term investor participation. This divergence between rising derivatives activity and falling delivery volumes may indicate that short-term traders and speculators are increasingly active, while longer-term holders are less engaged.

Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹8.02 crores based on 2% of the five-day average traded value. This liquidity profile supports the active derivatives market and allows for sizeable positions without significant market impact.

Market Positioning and Directional Bets

The surge in open interest alongside rising volumes suggests that market participants are actively repositioning themselves in anticipation of near-term price movements. The increase in OI typically reflects fresh capital entering the market, which can be interpreted as either new bullish bets or fresh bearish hedges depending on the composition of long and short positions.

Given the stock’s recent outperformance relative to its sector and the broader Sensex (which gained a marginal 0.03% on the same day), the derivatives activity may be skewed towards bullish strategies. However, the fact that the stock remains below its shorter-term moving averages and the decline in delivery volumes points to some caution among longer-term investors.

Options market data, with a notional value exceeding ₹28,867 crores, indicates significant interest in hedging and speculative plays. The high options value relative to futures suggests that traders may be employing complex strategies such as spreads, straddles, or protective puts to manage risk amid uncertain market conditions.

Mojo Score and Analyst Ratings

One 97 Communications Ltd currently holds a Mojo Score of 62.0, categorised as a 'Hold' rating, a downgrade from its previous 'Buy' grade as of 24 December 2025. The market cap grade stands at 2, reflecting its mid-cap status with a market capitalisation of approximately ₹83,104 crores. This rating adjustment aligns with the mixed technical signals and the cautious investor stance observed in the derivatives market.

Comparative Performance and Sector Context

In the context of the Financial Technology sector, PAYTM’s 1-day return of 1.72% notably outpaces the sector’s marginal decline of 0.10%. This relative strength may be attracting speculative interest in the derivatives market, as traders seek to capitalise on potential upside while managing downside risk through options strategies.

However, the divergence between short-term momentum and longer-term technical indicators suggests that investors should remain vigilant. The stock’s position above the 100-day and 200-day moving averages provides some support, but the inability to sustain levels above shorter-term averages could limit near-term gains.

Implications for Investors and Traders

The recent spike in open interest and volume in One 97 Communications Ltd’s derivatives market underscores a period of heightened activity and repositioning. For traders, this environment offers opportunities to capitalise on volatility through futures and options strategies, but also demands careful risk management given the mixed technical signals.

Long-term investors should note the decline in delivery volumes, which may indicate reduced conviction at current price levels. The downgrade in Mojo Grade from 'Buy' to 'Hold' further suggests a need for caution and reassessment of portfolio exposure.

Overall, the derivatives market activity reflects a nuanced outlook on PAYTM, with participants balancing optimism about the company’s growth prospects against near-term technical resistance and sector headwinds.

Outlook and Conclusion

One 97 Communications Ltd’s derivatives market surge in open interest and volume signals active repositioning by market participants amid a backdrop of mixed price action and technical indicators. While the stock has demonstrated resilience relative to its sector, the divergence in moving averages and falling delivery volumes counsel prudence.

Investors and traders should closely monitor further developments in open interest, volume patterns, and price movements to gauge the sustainability of current trends. The evolving derivatives landscape offers both opportunities and risks, making informed analysis and disciplined strategy essential for navigating the near-term market environment.

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