Key Events This Week
19 Jan: Sharp open interest surge signalling bullish positioning
20 Jan: Mojo Grade upgraded to Strong Buy amid robust fundamentals
21 Jan: Heavy call and put option activity amid bearish price action
23 Jan: Open interest rises 10.96% despite 2.57% price decline
Week Close: Rs.6,147.50 (-3.99%) vs Sensex -3.31%
19 January: Bullish Open Interest Surge Supports Price Resilience
Persistent Systems began the week on a positive note, closing at Rs.6,436.00, up 0.51% despite the Sensex falling 0.49%. The stock saw a 10.07% increase in open interest to 39,946 contracts, accompanied by strong derivatives volume and a futures notional value of approximately ₹49,861.43 lakhs. This surge indicated fresh long positions and bullish market sentiment as the stock traded near its 52-week high of Rs.6,599.
Technically, the stock was trading above all key moving averages, supported by a 62.63% rise in delivery volumes, signalling robust investor participation. This day’s outperformance against the sector and Sensex underscored Persistent Systems’ relative strength amid a subdued market.
20 January: Mojo Grade Upgrade Amid Mixed Price Action
On 20 January, Persistent Systems experienced a 1.44% price decline to Rs.6,343.20, underperforming the Sensex’s 1.82% fall. However, open interest surged 22.37% to 48,752 contracts, reflecting active repositioning in derivatives. The stock maintained its position above all major moving averages, supporting a sustained uptrend despite short-term profit booking.
MarketsMOJO upgraded the stock’s Mojo Grade from Buy to Strong Buy, citing improved fundamentals including a 21.92% ROE, zero debt-to-equity ratio, and strong quarterly revenue growth of 27.99%. The upgrade reflected confidence in Persistent Systems’ operational excellence and robust financial trends, even as the stock traded at a premium valuation with a P/B ratio of 14.2.
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21 January: High-Value Trading Amid Bearish Price Action and Mixed Technical Signals
The stock faced significant selling pressure on 21 January, closing at Rs.6,243.80, down 1.57%, while the Sensex declined only 0.47%. Persistent Systems recorded a traded value exceeding ₹511 crore, ranking among the most actively traded equities by value. Despite this liquidity, the stock traded below its 5-day, 20-day, and 50-day moving averages, signalling short-term weakness.
Delivery volumes rose 58.54% to 2.59 lakh shares, indicating increased investor participation despite the price decline. The derivatives market showed heavy call and put option activity clustered around strikes from Rs.6,300 to Rs.6,500 for calls and Rs.5,900 to Rs.6,300 for puts, all expiring on 27 January. This suggests a complex mix of bullish bets and hedging amid bearish price momentum.
Technical momentum shifted from strongly bullish to mildly bullish, with weekly MACD remaining positive but monthly MACD turning mildly bearish. RSI readings were neutral, indicating neither overbought nor oversold conditions. Bollinger Bands and On-Balance Volume presented mixed signals, reflecting a transitional phase in the stock’s trend.
23 January: Open Interest Surges Despite Price Decline
On the final trading day of the week, Persistent Systems closed at Rs.6,147.50, down 2.71%, underperforming both its sector and the Sensex. Open interest increased by 10.96% to 53,749 contracts, with derivatives turnover reaching ₹1,45,193.35 lakhs. The weighted average traded price skewed towards the day’s low, indicating selling pressure.
Delivery volumes fell sharply by 41.24% to 2.07 lakh shares, signalling waning conviction among long-term holders. The stock remained above its 100-day and 200-day moving averages but below short-term averages, suggesting resistance and possible consolidation. The surge in open interest amid falling prices may indicate fresh short positions or unwinding of longs, reflecting divergent market views on near-term direction.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.6,436.00 | +0.51% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.6,343.20 | -1.44% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.6,243.80 | -1.57% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.6,319.05 | +1.21% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.6,147.50 | -2.71% | 35,609.90 | -1.33% |
Key Takeaways
Positive Signals: Persistent Systems demonstrated strong derivatives market activity with multiple open interest surges, reflecting active positioning and liquidity. The upgrade to a Strong Buy Mojo Grade on 19 January highlighted robust fundamentals, including high ROE, zero debt, and consistent revenue growth. Delivery volumes increased midweek, indicating investor conviction despite price volatility.
Cautionary Signals: The stock underperformed the Sensex and its sector over the week, closing 3.99% lower. Technical momentum shifted from strongly bullish to mildly bullish, with mixed MACD and RSI signals suggesting potential consolidation. Heavy call and put option activity clustered near current prices indicated hedging and speculative positioning amid bearish price trends. Declining delivery volumes on 23 January and price trading below short-term moving averages point to near-term resistance and uncertainty.
Conclusion
Persistent Systems Ltd’s week was marked by a complex interplay of strong fundamental upgrades and active derivatives positioning against a backdrop of price weakness and technical caution. While the company’s robust financial metrics and upgraded Mojo Grade support a positive medium- to long-term outlook, the recent price declines and mixed technical signals highlight the need for careful monitoring. Investors should watch open interest trends, delivery volumes, and key moving averages closely to assess whether the stock can regain momentum or face further consolidation. The active options market ahead of the 27 January expiry underscores the dynamic sentiment and potential volatility in the near term.
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