Patanjali Foods Sees Sharp Open Interest Surge Amidst Weak Price Momentum

Open Interest and Volume Dynamics

On 20 Jan 2026, Patanjali Foods Ltd’s open interest (OI) in derivatives rose sharply by 6,731 contracts, climbing from 56,230 to 62,961. This 11.97% increase in OI was accompanied by a futures volume of 38,622 contracts, reflecting active participation in the derivatives market. The futures value stood at approximately ₹85,372.35 lakhs, while the options segment exhibited an outsized notional value of ₹9,471.14 crores, indicating significant hedging or speculative activity.

The total derivatives value traded was ₹86,140.54 lakhs, underscoring the liquidity and interest in Patanjali Foods’ contracts. However, the underlying stock price declined to Rs 506, with an intraday low of Rs 500.05, marking a fresh 52-week low and signalling bearish sentiment among investors.

Price Performance and Moving Averages

Patanjali Foods has been under pressure for the past five consecutive trading sessions, losing 8.31% over this period. The stock underperformed its sector by 2.13% on the day, with a one-day return of -3.07% compared to the edible oil sector’s -0.87% and the Sensex’s -0.97%. The weighted average price for the day was closer to the intraday low, indicating that most volume traded near the bottom end of the price range.

Technically, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — reinforcing the downtrend. This persistent weakness in price, despite rising open interest, suggests that new positions are being built on the short side or that existing longs are being liquidated.

Investor Participation and Liquidity

Delivery volumes have also contracted sharply, with 3.09 lakh shares delivered on 19 Jan 2026, down 42.54% from the five-day average delivery volume. This decline in investor participation at the delivery level contrasts with the surge in derivatives activity, implying that traders are increasingly relying on futures and options for exposure rather than outright stock ownership.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting trade sizes up to ₹1.04 crore based on 2% of the five-day average traded value. This liquidity facilitates active derivatives trading and allows institutional players to manoeuvre positions efficiently.

Market Positioning and Directional Bets

The simultaneous rise in open interest and decline in price typically indicates that fresh short positions are being established, or that bearish bets are intensifying. Given Patanjali Foods’ current Mojo Score of 44.0 and a downgrade from Hold to Sell on 13 Jan 2026, market participants appear to be aligning with a negative outlook on the stock’s near-term prospects.

Moreover, the stock’s Market Cap Grade of 2 and mid-cap status (₹56,224 crore) suggest it is sufficiently sizeable to attract institutional interest but still vulnerable to volatility and sector headwinds. The edible oil sector itself has been facing margin pressures and input cost fluctuations, which may be weighing on Patanjali Foods’ fundamentals and investor sentiment.

Options data, with a notional value exceeding ₹9,471 crores, hints at complex strategies possibly involving protective puts or speculative calls, but the dominant trend appears bearish given the price action and open interest patterns.

Sector and Benchmark Comparison

Compared to the broader edible oil sector and the Sensex, Patanjali Foods’ underperformance is stark. While the sector declined by 0.87% and the Sensex by 0.97% on the day, Patanjali Foods fell by 3.07%, reflecting company-specific challenges or negative market perception. This divergence underscores the importance of monitoring sectoral trends alongside individual stock dynamics for a comprehensive investment view.

Investors should also note the stock’s consistent failure to hold above key moving averages, which often act as resistance levels in downtrends. The lack of investor participation in delivery volumes further signals caution among long-term holders.

Outlook and Investor Takeaways

Given the current data, Patanjali Foods Ltd is exhibiting signs of sustained bearish momentum. The surge in open interest amid falling prices and declining delivery volumes suggests that traders are positioning for further downside or volatility. The downgrade to a Sell rating by MarketsMOJO on 13 Jan 2026 reinforces this cautious stance.

Investors should closely monitor upcoming quarterly results, sectoral developments, and any shifts in input costs that could impact margins. Additionally, the derivatives market activity warrants attention as it may provide early signals of changing sentiment or potential short-covering rallies.

For those holding the stock, risk management strategies such as stop-loss orders or hedging via options could be prudent. Prospective investors might consider waiting for signs of price stabilisation or a technical reversal before initiating new positions.

Summary of Key Metrics:

• Open Interest increased by 11.97% to 62,961 contracts


• Futures volume at 38,622 contracts with futures value of ₹85,372.35 lakhs


• Options notional value approximately ₹9,471.14 crores


• Stock price hit 52-week low of Rs 500.05


• Five-day consecutive price decline totalling -8.31%


• Mojo Score: 44.0, Mojo Grade downgraded to Sell from Hold


• Market Cap: ₹56,224 crore (Mid Cap)


• Delivery volume down 42.54% versus five-day average

Overall, the derivatives market activity in Patanjali Foods Ltd signals a cautious to bearish outlook, with traders actively positioning for potential downside while the stock struggles to find support amid sectoral and company-specific challenges.

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