Key Events This Week
2 Feb: Mixed technical signals amid mild momentum shift
3 Feb: Bearish momentum intensifies with technical downgrade
4 Feb: Sharp open interest surge amid bearish price action
5 Feb: Technical downgrade confirmed with sustained bearish momentum
6 Feb: Another sharp open interest increase amid continued price decline
6 Feb Close: Stock ends week at ₹7,260.85, down 6.40%
2 February: Mixed Technical Signals Amid Mild Momentum Shift
On Monday, OFSS opened the week with a slight decline of 0.37%, closing at ₹7,728.70 against a Sensex drop of 1.03%. Technical indicators painted a complex picture, with momentum oscillators such as MACD and RSI showing divergent signals. The weekly MACD remained bearish while the monthly RSI suggested underlying strength. The stock traded within a narrow range, reflecting investor indecision amid broader market uncertainties.
3 February: Bearish Momentum Intensifies with Technical Downgrade
Tuesday saw a rebound in OFSS’s price, gaining 1.27% to ₹7,826.85, outperforming the Sensex’s 2.63% gain. However, this was short-lived as technical momentum deteriorated. The overall trend shifted from mildly bearish to outright bearish, confirmed by a downgrade in the Mojo Score to a Sell rating. Despite the intraday volatility, the stock remained below key moving averages, signalling persistent selling pressure.
4 February: Sharp Open Interest Surge Amid Bearish Price Action
Wednesday marked a significant development as OFSS experienced an 18.33% surge in open interest in its derivatives segment, rising from 23,027 to 27,249 contracts. This spike coincided with a sharp 3.99% drop in the stock price to ₹7,514.90, indicating increased bearish positioning by traders. The futures and options notional value reached ₹3,149.56 crores, highlighting robust derivatives activity. Despite the price decline, OFSS outperformed its sector, which fell 5.53%, suggesting relative resilience amid sector-wide weakness.
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5 February: Technical Downgrade Confirmed with Sustained Bearish Momentum
Thursday continued the downward trajectory as OFSS closed at ₹7,443.50, down 0.95%. Technical indicators reinforced the bearish outlook, with MACD and KST oscillators signalling sustained weakness. The stock traded below all major moving averages, and the Mojo Score remained at a Sell rating. Despite some mildly bullish monthly RSI readings, the overall technical environment suggested further downside risk. The stock’s proximity to its 52-week low underscored the pressure on price levels.
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6 February: Another Sharp Open Interest Increase Amid Continued Price Decline
Friday closed the week with OFSS falling 2.45% to ₹7,260.85, marking a cumulative weekly loss of 6.40%. Open interest surged again by 14.86% to 31,438 contracts, accompanied by elevated futures volume of 26,904 contracts. The derivatives market activity, with a notional value exceeding ₹25,729 lakhs, indicated fresh bearish bets, likely short futures and put options. The stock underperformed both its sector and the Sensex, with declining delivery volumes signalling reduced long-term investor conviction. The technical setup remained firmly bearish, trading below all key moving averages and near its 52-week low.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.7,728.70 | -0.37% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.7,826.85 | +1.27% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.7,514.90 | -3.99% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.7,443.50 | -0.95% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.7,260.85 | -2.45% | 36,730.20 | +0.10% |
Key Takeaways
Bearish Technical Momentum: The week saw a clear shift from mildly bearish to outright bearish momentum, confirmed by multiple technical indicators including MACD, KST, and moving averages. The stock consistently traded below key averages, signalling sustained selling pressure.
Derivatives Market Activity: Two significant surges in open interest on 4 and 6 February, rising 18.33% and 14.86% respectively, accompanied by high futures and options volumes, indicate increased bearish positioning and speculative activity.
Mojo Score Downgrade: The downgrade to a Sell rating reflects deteriorating fundamentals and technical outlook, reinforcing caution among investors.
Relative Performance: OFSS underperformed the Sensex by 7.91% over the week, highlighting stock-specific weakness amid a broadly positive market.
Dividend Yield Cushion: Despite the negative price action, the stock’s dividend yield of approximately 5.3% may provide some support for long-term holders.
Volume and Delivery Trends: Declining delivery volumes suggest reduced conviction among long-term investors, potentially increasing volatility as derivatives traders dominate price action.
Conclusion
Oracle Financial Services Software Ltd’s performance in the week ending 6 February 2026 was marked by a pronounced decline of 6.40%, driven by a confluence of bearish technical signals, heightened derivatives market activity, and a downgrade in analyst sentiment. The stock’s failure to hold above key moving averages and the sharp increases in open interest amid falling prices underscore a market consensus leaning towards further downside risk. While the company’s attractive dividend yield and relative sector outperformance on certain days offer some respite, the prevailing technical landscape advises caution. Investors should closely monitor momentum indicators, open interest trends, and volume patterns to navigate the evolving outlook for this mid-cap software stock.
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