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

Open Interest and Volume Dynamics

On 30 Jan 2026, One 97 Communications Ltd’s open interest (OI) in derivatives rose from 40,447 contracts to 45,408, marking an absolute increase of 4,961 contracts or 12.27%. This surge in OI was accompanied by a volume of 43,511 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹56,920 lakhs, while options contributed a staggering ₹32,257 crores in notional value, culminating in a total derivatives value exceeding ₹64,695 lakhs.

The underlying stock price closed at ₹1,142, having touched an intraday low of ₹1,115.6, down 4.49% from the previous day’s close. Notably, the weighted average price of traded contracts clustered closer to the day’s low, suggesting that the bulk of trading activity occurred near the lower price range, potentially reflecting bearish sentiment or aggressive short positioning.

Price Performance and Moving Averages

Despite the open interest expansion, the stock underperformed its Financial Technology sector peers by 1.7% on the day, registering a 1-day return of -2.32% compared to the sector’s -0.30% and the Sensex’s -0.48%. The stock has now declined for two consecutive sessions, losing 2.93% over this period. Technical indicators reveal a mixed picture: the current price remains above the 200-day moving average, a long-term bullish signal, but trades below the 5-day, 20-day, 50-day, and 100-day moving averages, indicating short- to medium-term weakness and potential resistance overhead.

Investor Participation and Liquidity Considerations

Investor participation appears to be waning, with delivery volumes on 29 Jan falling by 28.73% to 19.47 lakh shares compared to the five-day average. This decline in delivery volume suggests reduced conviction among long-term holders or profit-taking ahead of anticipated volatility. However, liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹16.86 crores based on 2% of the five-day average traded value, ensuring that institutional investors can execute orders without significant market impact.

Market Positioning and Directional Bets

The sharp rise in open interest amid declining prices suggests that new positions are being established rather than closed out. This pattern often indicates that traders are either building fresh short positions or hedging existing long exposure. Given the clustering of volume near the day’s low and the stock’s underperformance relative to its sector, the evidence leans towards increased bearish bets in the derivatives market.

However, the sustained level above the 200-day moving average and the sizeable market capitalisation of ₹72,801 crores (mid-cap) imply that longer-term investors may still view the stock as fundamentally sound, awaiting a more favourable entry point. The MarketsMOJO Mojo Score for One 97 Communications Ltd currently stands at 68.0, with a Hold grade, reflecting a cautious stance after a recent downgrade from Buy on 24 Dec 2025. This downgrade aligns with the observed technical weakness and reduced investor enthusiasm.

Sector and Broader Market Context

Within the Financial Technology sector, One 97 Communications Ltd’s recent performance contrasts with more resilient peers, underscoring company-specific challenges or profit-taking pressures. The sector’s modest decline of 0.30% on the day and the broader Sensex’s 0.48% fall suggest that the stock’s weakness is not solely attributable to market-wide factors but may reflect concerns over earnings outlook, regulatory developments, or competitive dynamics.

Investors should also note the relatively low Market Cap Grade of 2, indicating moderate market capitalisation relative to peers, which may influence liquidity and volatility profiles. The combination of technical signals, open interest trends, and fundamental scores suggests a period of consolidation or correction before a potential resumption of upward momentum.

Implications for Investors

For investors and traders, the surge in open interest combined with declining prices signals caution. The derivatives market appears to be positioning for further downside or increased volatility in the near term. Those holding long positions may consider tightening stop-loss levels or hedging exposure through options strategies. Conversely, speculative traders might explore short-term opportunities in line with the bearish sentiment reflected in the derivatives activity.

Long-term investors should monitor upcoming earnings releases, regulatory announcements, and sector developments closely, as these factors could catalyse a reversal or further deterioration in the stock’s trend. The current Hold rating and Mojo Score of 68.0 suggest that patience and selective entry points are advisable until clearer directional cues emerge.

Conclusion

One 97 Communications Ltd’s recent open interest surge in derivatives highlights a significant shift in market positioning amid a backdrop of price weakness and reduced investor participation. While the stock remains above key long-term moving averages, short-term technical indicators and volume patterns point to increased bearish bets. Investors should weigh these signals carefully, balancing the company’s fundamental prospects against the evolving market sentiment in the Financial Technology sector.

Unlock special upgrade rates for a limited period. Start Saving Now →