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

Open Interest and Volume Dynamics

On 30 January 2026, One 97 Communications Ltd (symbol: PAYTM) recorded an open interest (OI) of 46,605 contracts in its derivatives, marking a substantial increase of 6,158 contracts or 15.22% compared to the previous OI of 40,447. This rise in OI was accompanied by a trading volume of 57,150 contracts, indicating robust participation in the futures and options market. The futures segment alone accounted for a value of approximately ₹77,865 lakhs, while the options segment's notional value was significantly higher at ₹41,895 crores, culminating in a total derivatives value of ₹88,026 lakhs.

The underlying stock price closed at ₹1,120, having touched an intraday low of ₹1,112.20, down 4.79% on the day. The weighted average price of traded contracts skewed closer to the day's low, suggesting that sellers dominated trading activity. This price action, coupled with rising OI, often points to fresh short positions being established or existing shorts being added to, reflecting a bearish market stance among derivatives traders.

Price Performance and Moving Averages

One 97 Communications Ltd has been under pressure for the past two sessions, losing 4.33% cumulatively. Its 1-day return of -3.42% notably underperformed the Financial Technology sector's decline of -0.52% and the Sensex's fall of -0.50%. The stock remains above its 200-day moving average, a long-term support indicator, but trades below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short-term weakness and a potential downtrend in momentum.

Investor participation appears to be waning, with delivery volumes on 29 January falling by 28.73% to 19.47 lakh shares compared to the 5-day average. This decline in delivery volume suggests reduced conviction among long-term holders, possibly indicating profit-booking or cautious positioning ahead of upcoming market catalysts.

Market Positioning and Directional Bets

The surge in open interest alongside declining prices typically indicates that new short positions are being initiated, or that existing shorts are being increased. This is consistent with the stock’s recent underperformance relative to its sector and the broader market. The elevated futures and options notional values highlight significant capital allocation towards hedging or speculative strategies.

Options data, with a notional value exceeding ₹41,895 crores, suggests that traders are actively using options strategies to express bearish views or to hedge existing exposures. The concentration of volume near the lower price range further supports the thesis of increased downside bets. However, the stock’s position above the 200-day moving average may provide a technical floor, limiting the extent of any potential decline in the near term.

Liquidity and Trading Viability

Liquidity remains adequate for sizeable trades, with the stock’s average traded value over five days supporting a trade size of approximately ₹16.86 crores. This level of liquidity is crucial for institutional investors and large traders seeking to enter or exit positions without significant market impact. The mid-cap company, with a market capitalisation of ₹72,168 crores, continues to attract active participation from both retail and institutional segments.

Despite the recent downgrade in the Mojo Grade from Buy to Hold on 24 December 2025, the company maintains a Mojo Score of 68.0, reflecting a balanced outlook. The Market Cap Grade of 2 indicates moderate size and influence within the Financial Technology sector.

Implications for Investors and Traders

The current market signals for One 97 Communications Ltd suggest a cautious stance. The rising open interest amid falling prices points to increased bearish sentiment in the derivatives market. Traders should closely monitor the stock’s ability to hold above its 200-day moving average, which may act as a critical support level.

Investors with a medium to long-term horizon may want to weigh the recent downgrade in the Mojo Grade and the declining delivery volumes as indicators of reduced confidence. Conversely, the company’s solid fundamentals and sizeable market capitalisation provide a foundation for potential recovery once market volatility subsides.

For short-term traders, the derivatives activity offers opportunities to capitalise on directional bets, particularly through options strategies that can hedge risk or amplify returns depending on market moves. The substantial notional values in options contracts highlight the importance of monitoring strike price concentrations and expiry dates for potential volatility spikes.

Sector and Market Context

The Financial Technology sector has experienced mixed performance recently, with broader market indices such as the Sensex declining marginally by 0.50% on the same day. One 97 Communications Ltd’s underperformance relative to its sector (-2.93%) underscores company-specific challenges or profit-taking pressures. However, the sector’s overall resilience and ongoing digital payments adoption trends remain supportive factors for the stock’s medium-term outlook.

Conclusion

In summary, the sharp increase in open interest for One 97 Communications Ltd’s derivatives signals active repositioning by market participants amid a backdrop of price weakness and reduced investor participation. While the technical indicators point to short-term bearishness, the company’s fundamental strengths and liquidity profile continue to attract attention. Investors and traders should remain vigilant to evolving market dynamics and use a combination of technical and fundamental analysis to guide their decisions.

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