One 97 Communications Ltd Sees Significant Open Interest Surge Amid Price Weakness

Open Interest and Volume Dynamics

On 30 Jan 2026, One 97 Communications Ltd (symbol: PAYTM) recorded an open interest (OI) of 45,755 contracts in its derivatives, marking a substantial increase of 5,308 contracts or 13.12% compared to the previous OI of 40,447. This rise in OI accompanied a total volume of 47,463 contracts, indicating that fresh positions are being established rather than existing ones being squared off.

The futures segment alone accounted for a value of approximately ₹62,606 lakhs, while options contributed a staggering ₹35,131.69 crores, culminating in a combined derivatives value of ₹71,088.50 lakhs. Such elevated activity underscores the growing interest among traders to capitalise on the stock’s price movements through leveraged instruments.

Price Performance and Market Context

Despite the surge in derivatives activity, the underlying stock price has underperformed its sector and broader market indices. PAYTM’s share price declined by 3.23% on the day, touching an intraday low of ₹1,115.60, down 4.49% from the previous close. The stock has been on a two-day losing streak, cumulatively falling 3.27%, underperforming the Financial Technology sector’s 1D return of -0.29% and the Sensex’s -0.58%.

Notably, the weighted average price for the day was closer to the intraday low, suggesting that the bulk of trading volume occurred near the lower price levels. This pattern often reflects selling pressure or cautious investor sentiment amid volatile conditions.

Technical Indicators and Investor Participation

From a technical standpoint, PAYTM’s price remains above its 200-day moving average, a long-term bullish indicator, but below its 5-day, 20-day, 50-day, and 100-day moving averages. This mixed technical picture points to short- and medium-term weakness despite longer-term support.

Investor participation has also waned, with delivery volumes on 29 Jan falling by 28.73% to 19.47 lakh shares compared to the 5-day average. Reduced delivery volumes often indicate lower conviction among investors holding shares for the long term, potentially increasing volatility as traders dominate price action.

Market Positioning and Directional Bets

The sharp increase in open interest alongside rising volumes in both futures and options suggests that market participants are actively repositioning themselves. The 13.12% rise in OI indicates that new contracts are being written, which often reflects fresh directional bets rather than mere profit-taking or position unwinding.

Given the recent price weakness, some traders may be speculating on further downside, using put options or short futures to hedge or profit from declines. Conversely, the sizeable options value hints at complex strategies, including spreads or straddles, as investors seek to capitalise on expected volatility rather than directional moves alone.

One 97 Communications Ltd’s current Mojo Score stands at 68.0 with a Mojo Grade of Hold, downgraded from Buy on 24 Dec 2025. This reflects a cautious stance amid mixed fundamentals and technical signals. The company’s market capitalisation is ₹72,813.86 crores, placing it in the mid-cap category with a Market Cap Grade of 2, indicating moderate liquidity and institutional interest.

Liquidity remains adequate for sizeable trades, with the stock’s daily traded value supporting transactions up to ₹16.86 crores based on 2% of the 5-day average traded value. This ensures that derivatives activity is supported by a sufficiently liquid underlying market, reducing execution risk for large participants.

Implications for Investors and Traders

The confluence of rising open interest, elevated volumes, and price weakness suggests a market in flux, with participants actively recalibrating their exposure to One 97 Communications Ltd. Investors should be mindful of the increased volatility and the potential for sharp price swings driven by speculative positioning in derivatives.

While the long-term technical support above the 200-day moving average offers some reassurance, the short-term trend remains bearish, warranting caution. Traders with a higher risk appetite may look to exploit the volatility through options strategies, while long-term investors might await clearer signs of trend reversal or fundamental improvement.

Outlook and Analyst Commentary

Analysts tracking One 97 Communications Ltd have adjusted their outlook in light of recent market developments. The downgrade from Buy to Hold on 24 Dec 2025 reflects concerns over near-term earnings growth and competitive pressures in the fintech sector. However, the company’s strong market position and ongoing innovation initiatives continue to support a constructive long-term view.

Investors should closely monitor open interest trends and volume patterns in the derivatives market as leading indicators of sentiment shifts. A sustained increase in OI coupled with price recovery could signal renewed buying interest, while further OI growth amid price declines may indicate deepening bearish bets.

Given the complex interplay of technical and fundamental factors, a balanced approach combining risk management with selective exposure to derivatives strategies may be prudent for market participants.

Summary

One 97 Communications Ltd’s recent surge in open interest and trading volumes in derivatives highlights a period of heightened market activity and repositioning. Despite short-term price weakness and reduced investor participation, the stock remains supported by long-term technical levels and a sizeable market capitalisation. Investors and traders should remain vigilant to evolving market signals and consider the implications of increased speculative positioning when formulating their strategies.

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