Open Interest and Volume Dynamics
The latest data reveals that Swiggy’s open interest (OI) in derivatives rose from 8,975 contracts to 10,182, an increase of 1,207 contracts or 13.45% on a day when the stock price declined by 2.29%. This rise in OI, coupled with a futures volume of 3,264 contracts, indicates that new positions are being established rather than existing ones being squared off. The total futures value stood at approximately ₹7,181.22 lakhs, while options value was substantially higher at ₹9,351.86 crores, underscoring significant derivatives market interest in the stock.
Interestingly, the weighted average price of traded volumes was closer to the intraday low of ₹378.5, suggesting that most trading activity occurred near the lower price range. This pattern often points to bearish sentiment, as sellers dominate and buyers hesitate to step in at higher levels.
Price Performance and Technical Indicators
Swiggy’s stock has been on a downward trajectory, falling for two consecutive days with a cumulative loss of 3.01%. It underperformed its sector by 1.16 percentage points and the Sensex by over 2 percentage points on the day. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend and weak technical momentum.
Investor participation remains robust, with delivery volumes on 2 January reaching 29.13 lakh shares, a slight increase of 0.16% compared to the five-day average. This suggests that despite the price weakness, there is still active interest in the stock, possibly from short sellers or value hunters.
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Market Positioning and Directional Bets
The surge in open interest alongside falling prices typically indicates that fresh short positions are being built, reflecting bearish market expectations. Traders appear to be positioning for further downside, as evidenced by the increase in futures OI and the concentration of volume near the lows. The substantial options market value also suggests active hedging and speculative activity, with put options likely gaining prominence as protection against further declines.
Swiggy’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 4 December 2025. This downgrade in sentiment aligns with the technical and derivatives market signals, reinforcing the cautious stance investors are adopting. The company’s market capitalisation is ₹1,04,519.27 crore, placing it in the mid-cap category, but its Market Cap Grade remains low at 2, reflecting limited institutional confidence.
Liquidity and Trading Viability
Liquidity metrics indicate that Swiggy is sufficiently liquid for sizeable trades, with a trade size capacity of approximately ₹5.3 crore based on 2% of the five-day average traded value. This ensures that institutional investors can enter or exit positions without significant market impact, which is crucial during volatile phases.
However, the persistent underperformance relative to the sector and benchmark indices, combined with the negative technical setup, suggests that investors should exercise caution. The rising open interest and volume near lows may also imply that the market is bracing for further downside or consolidation at lower levels.
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Implications for Investors
For investors and traders, the current derivatives activity in Swiggy Ltd signals a market leaning towards bearishness, with increased short interest and protective option strategies. The stock’s technical weakness across multiple moving averages and its underperformance relative to the sector and Sensex further corroborate this outlook.
Given the strong sell rating and deteriorating momentum, investors may consider reducing exposure or employing hedging strategies to mitigate downside risk. Meanwhile, traders might look for confirmation of trend continuation or reversal through further open interest and volume analysis in the coming sessions.
It is also important to monitor broader sectoral trends in E-Retail/E-Commerce, as well as macroeconomic factors that could influence consumer spending and digital commerce growth, which remain key drivers for Swiggy’s long-term prospects.
Summary
Swiggy Ltd’s recent surge in open interest by 13.45% amid falling prices highlights a shift towards bearish positioning in the derivatives market. The stock’s technical indicators remain weak, with trading volumes concentrated near intraday lows and a strong sell Mojo Grade reinforcing negative sentiment. While liquidity remains adequate for institutional trades, investors should remain cautious given the prevailing downtrend and market positioning. Active monitoring of derivatives activity and sectoral developments will be essential for informed decision-making going forward.
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