Persistent Systems Ltd Sees Sharp Open Interest Surge Amid Bearish Price Action

Open Interest and Volume Dynamics

On 11 Feb 2026, Persistent Systems recorded an open interest (OI) of 51,487 contracts, marking a robust increase of 6,466 contracts or 14.36% compared to the previous day’s OI of 45,021. This rise in OI was accompanied by a futures volume of 49,494 contracts, indicating active participation in the derivatives market. The futures value stood at approximately ₹43,441.44 lakhs, while the options segment exhibited a substantial notional value of ₹25,046.17 crores, underscoring the stock’s liquidity and interest among derivatives traders.

The total traded value combining futures and options was ₹48,197.13 lakhs, with the underlying stock price closing at ₹5,739. Despite this heightened derivatives activity, Persistent Systems underperformed its sector by 0.92% and the broader Sensex by 2.41% on the day, reflecting a disconnect between derivatives positioning and spot price movement.

Price Performance and Technical Indicators

The stock has been on a downward trajectory, falling 2.32% over the last two sessions, with an intraday low of ₹5,712 on 11 Feb 2026, representing a 2.73% decline from the previous close. Notably, the weighted average price of traded volumes skewed closer to the day’s low, suggesting selling pressure dominated trading activity.

Technical analysis reveals Persistent Systems is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish trend. Additionally, delivery volumes have sharply contracted, with only 1.7 lakh shares delivered on 10 Feb, down 67.72% from the five-day average, indicating waning investor participation in the cash segment.

Market Capitalisation and Mojo Ratings

Persistent Systems commands a market capitalisation of ₹91,254 crores, categorising it as a mid-cap stock within the Computers - Software & Consulting sector. The company’s Mojo Score currently stands at 67.0, with a Mojo Grade downgraded from Buy to Hold as of 5 Feb 2026. This downgrade reflects a reassessment of the stock’s risk-reward profile amid recent price weakness and evolving market conditions.

Interpreting the Open Interest Surge

The sharp increase in open interest amid falling prices typically suggests that new short positions are being initiated, or that existing short sellers are adding to their bets. This is consistent with the stock’s underperformance relative to its sector and the broader market. The elevated futures and options values indicate that institutional and retail traders alike are positioning for further downside or hedging existing long exposures.

Alternatively, some market participants may be employing complex option strategies such as protective puts or collars, which could also contribute to the high options notional value. However, the dominant narrative points towards a bearish sentiment prevailing in the derivatives market for Persistent Systems.

Volume Patterns and Liquidity Considerations

Despite the increased derivatives activity, the underlying stock’s liquidity remains adequate, with a 5-day average traded value supporting trade sizes up to ₹10.94 crores. This ensures that institutional investors can execute sizeable transactions without significant market impact. However, the sharp decline in delivery volumes signals that investors are increasingly reluctant to hold the stock in physical form, preferring to express views through derivatives instruments instead.

Sector and Market Context

Within the Computers - Software & Consulting sector, Persistent Systems’ 1-day return of -2.53% lagged the sector’s -1.33% and the Sensex’s marginal -0.12% decline. This relative underperformance, combined with the downgrade in Mojo Grade, suggests that the stock is currently viewed less favourably compared to peers. Investors should monitor sectoral trends closely, as any recovery or further weakness in the IT services space could materially influence Persistent Systems’ trajectory.

Investor Implications and Outlook

For investors and traders, the current market signals warrant caution. The rising open interest coupled with declining prices suggests that bearish bets are gaining momentum. Those holding long positions may consider tightening stop-loss levels or hedging through options to mitigate downside risk. Conversely, traders with a bearish outlook might find opportunities in short futures or put options, given the prevailing sentiment.

However, the downgrade to a Hold rating by MarketsMOJO indicates that the stock is not yet a strong sell, reflecting potential for stabilisation or recovery if sectoral conditions improve or if the stock finds support near current levels. Monitoring upcoming quarterly results, order book updates, and broader IT sector trends will be critical to reassessing the stock’s prospects.

Conclusion

Persistent Systems Ltd’s derivatives market activity reveals a complex interplay of increased open interest and bearish price action, highlighting shifting market positioning. While the stock faces near-term headwinds, its liquidity and market cap profile keep it relevant for institutional and retail investors alike. Careful analysis of volume patterns, technical indicators, and sector dynamics will be essential for making informed investment decisions in the coming weeks.

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