Open Interest and Volume Dynamics
On 29 Dec 2025, Persistent Systems recorded an open interest (OI) of 48,625 contracts, up from 41,916 the previous session, marking an increase of 6,709 contracts or 16.01%. This rise in OI was accompanied by a volume of 48,761 contracts, closely aligned with the open interest figure, indicating active participation in the derivatives market. The futures value stood at ₹94,644.82 lakhs, while the options segment exhibited a substantial notional value of approximately ₹21,290.59 crores, underscoring the stock’s prominence in the derivatives space.
The total traded value combining futures and options was ₹95,784.59 lakhs, reflecting robust liquidity. The underlying stock price was ₹6,221, with the stock’s market capitalisation at ₹99,373 crores, categorising it as a mid-cap entity within the Computers - Software & Consulting sector.
Price Performance and Technical Context
Despite the surge in derivatives activity, Persistent Systems’ stock price has been under pressure, declining by 4.78% over the past four consecutive sessions. The one-day return on 29 Dec was -0.98%, slightly underperforming the sector’s -0.79% and the Sensex’s -0.40% returns. This short-term weakness contrasts with the stock’s longer-term technical positioning, as it remains above its 50-day, 100-day, and 200-day moving averages, though it trades below the 5-day and 20-day averages. Such a pattern suggests a potential short-term correction within an overall uptrend.
Investor participation has notably increased, with delivery volumes reaching 1.71 lakh shares on 26 Dec, a 48.26% rise compared to the five-day average delivery volume. This heightened delivery volume indicates stronger conviction among investors holding shares beyond intraday trading, which could signal accumulation despite recent price softness.
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Market Positioning and Directional Bets
The sharp increase in open interest alongside stable volume suggests that new positions are being established rather than existing ones being squared off. This typically indicates fresh directional bets or hedging activity. Given the stock’s recent price decline and the derivatives market’s activity, it is plausible that traders are positioning for a potential rebound or volatility ahead.
Persistent Systems’ Mojo Score of 84.0 and an upgraded Mojo Grade to Strong Buy from Buy as of 22 Dec 2025 further support a positive medium-term outlook. The upgrade reflects improved fundamentals and technical strength, which may be encouraging institutional investors and traders to increase exposure through futures and options.
However, the day’s price dip of 1.01% and the stock’s underperformance relative to the sector and benchmark indices highlight caution. The divergence between rising open interest and falling prices can sometimes signal short-covering or a build-up of bearish positions. Close monitoring of option open interest concentration, particularly in put and call strikes, would provide deeper insight into market sentiment and potential price targets.
Liquidity and Trading Considerations
Liquidity remains adequate for sizeable trades, with the stock’s average five-day traded value supporting trade sizes up to ₹3.6 crores without significant market impact. This liquidity is crucial for institutional players and derivatives traders seeking to enter or exit positions efficiently.
Given the stock’s mixed technical signals and active derivatives market, traders should consider both the short-term risks of continued price weakness and the medium-term potential supported by strong fundamentals and investor interest.
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Outlook and Investor Takeaways
Persistent Systems Ltd’s recent surge in derivatives open interest amid a short-term price correction presents a complex but intriguing scenario for investors. The strong Mojo Grade upgrade to Strong Buy and rising delivery volumes suggest underlying confidence in the company’s prospects. Meanwhile, the elevated open interest and volume in futures and options point to increased speculative and hedging activity, possibly anticipating a directional move.
Investors should weigh the stock’s solid fundamentals and mid-cap status against the near-term technical weakness and broader market trends. Monitoring open interest changes in specific option strikes and expiry dates will be critical to discerning whether the market consensus is skewing bullish or bearish.
In summary, Persistent Systems remains a stock with robust medium-term potential, supported by strong fundamentals and institutional interest, but with short-term volatility risks that require careful risk management and strategic positioning.
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