Open Interest and Volume Dynamics
On 23 January 2026, Swiggy Ltd’s open interest (OI) in derivatives rose sharply to 45,119 contracts from 37,482 the previous day, marking an increase of 7,637 contracts or 20.38%. This notable expansion in OI was accompanied by a futures volume of 29,320 contracts, indicating robust trading activity. The combined futures and options value stood at approximately ₹6,763 crores, with futures contributing ₹665 crores and options dominating at ₹5,597 crores.
The surge in OI alongside elevated volume suggests fresh positions are being established rather than existing ones being squared off. This typically points to increased conviction among traders, either in anticipation of a directional move or as part of hedging strategies. However, the context of price action is crucial to interpret these flows accurately.
Price Performance and Market Context
Swiggy’s stock price has been under pressure, declining by 2.04% on the day and underperforming its E-Retail/E-Commerce sector by 1.94%. Over the past two trading sessions, the share has lost 5.69%, with an intraday low of ₹310.15 recorded on 22 January, down 3.17% from previous levels. The weighted average price for the day was closer to the low end, indicating selling pressure throughout the session.
Technically, Swiggy is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. This technical weakness, combined with rising volumes and open interest, suggests that market participants are positioning for further downside or volatility in the near term.
Investor Participation and Liquidity
Investor engagement has intensified, with delivery volume on 22 January reaching 1.26 crore shares, a 90.14% increase over the five-day average. This heightened participation underscores growing interest, possibly from both institutional and retail investors, amid the stock’s recent weakness. The stock’s liquidity remains adequate, supporting trade sizes up to ₹11.22 crores based on 2% of the five-day average traded value, facilitating active derivative and cash market operations.
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Directional Bets and Market Positioning
The sharp rise in open interest amid falling prices and increasing volumes typically indicates that traders are building fresh short positions or hedging existing long exposure. Given Swiggy’s current Mojo Score of 23.0 and a Strong Sell grade—upgraded from Sell on 4 December 2025—market sentiment remains decidedly negative. The downgrade reflects deteriorating fundamentals or technical outlook, reinforcing bearish positioning.
Options data further corroborates this view, with the options market value exceeding ₹5,597 crores, suggesting active put buying or call selling strategies. Such activity often signals expectations of continued downside or volatility. The underlying stock price at ₹315 remains below critical moving averages, reinforcing the likelihood of further pressure.
Comparative Sector and Market Performance
Swiggy’s 1-day return of -1.58% contrasts with a modest sector gain of 0.39% and a Sensex decline of 0.23%, highlighting relative weakness. As a mid-cap company with a market capitalisation of ₹87,019 crores, Swiggy’s performance is under close scrutiny by investors seeking growth in the E-Retail/E-Commerce space. The stock’s underperformance may reflect company-specific challenges or broader sector rotation away from certain mid-cap e-commerce names.
Implications for Investors
For investors and traders, the current surge in open interest combined with negative price action suggests caution. The market is signalling increased risk and potential for further declines. Those holding long positions may consider protective strategies such as stop-loss orders or hedging via options. Conversely, aggressive traders might explore short-selling opportunities or put option purchases to capitalise on expected downside.
Given the stock’s liquidity and active derivatives market, Swiggy remains a viable candidate for tactical trades, but the prevailing sentiment and technical indicators advise a conservative approach. Monitoring subsequent open interest changes and volume patterns will be critical to gauge whether the current positioning solidifies or reverses.
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Outlook and Final Assessment
Swiggy Ltd’s recent open interest surge in derivatives, coupled with declining prices and rising volumes, paints a picture of growing bearish conviction among market participants. The company’s Strong Sell Mojo Grade and deteriorating technical indicators reinforce this negative outlook. While the stock remains liquid and actively traded, investors should remain vigilant and consider risk management strategies amid heightened volatility.
Market watchers will be closely monitoring upcoming earnings, sector developments, and broader market trends to assess whether Swiggy can stabilise or if further downside is imminent. Until then, the derivatives market activity suggests that traders are bracing for continued uncertainty and potential price weakness in this mid-cap e-commerce player.
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