Open Interest and Volume Dynamics
On 23 Jan 2026, Swiggy Ltd’s open interest (OI) in derivatives rose sharply to 45,916 contracts from 37,482 the previous day, marking an increase of 8,434 contracts or 22.5%. This surge in OI was accompanied by a volume of 40,480 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹98,126 lakhs, while the options segment’s notional value stood at a staggering ₹7,043.77 crores, culminating in a total derivatives value exceeding ₹995.73 crores.
The underlying stock price closed at ₹314, having touched an intraday low of ₹310.15, down 3.17% on the day. The weighted average price of traded volumes skewed closer to the day’s low, suggesting selling pressure dominated the session. This price action, combined with rising OI, typically indicates fresh positions being initiated rather than existing ones being squared off.
Market Positioning and Directional Bets
The increase in open interest alongside a falling stock price often points to new short positions being established by market participants. Swiggy’s stock has declined for two consecutive days, losing 6.16% over this period, and underperformed its sector by 1.88% on the latest trading day. The stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – reinforcing the prevailing bearish sentiment.
Investor participation has also intensified, with delivery volume on 22 Jan reaching 1.26 crore shares, a 90.14% increase compared to the five-day average delivery volume. This surge in participation amid falling prices suggests that investors are either liquidating long positions or fresh short sellers are entering the market, anticipating further downside.
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Technical and Fundamental Context
Swiggy Ltd operates in the E-Retail/E-Commerce sector and currently holds a mid-cap market capitalisation of approximately ₹86,770.46 crores. Despite its sizeable market cap, the company’s recent performance has been disappointing. The stock’s Mojo Score stands at 23.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 4 Dec 2025. This downgrade reflects deteriorating fundamentals and technical weakness, signalling caution for investors.
Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹11.22 crores based on 2% of the five-day average traded value. This ensures that institutional investors can execute sizeable trades without significant market impact, which may partly explain the surge in open interest as large players adjust their positions.
Implications for Traders and Investors
The sharp rise in open interest amid falling prices suggests that market participants are positioning for further declines in Swiggy’s stock. The dominance of futures and options activity, with options notional value exceeding ₹7,000 crores, indicates that traders are actively using derivatives to hedge or speculate on the stock’s direction.
Given the stock’s underperformance relative to the sector and Sensex, combined with the technical breakdown below key moving averages, the risk-reward profile currently favours bearish strategies. However, investors should remain vigilant for any reversal signals, as the elevated open interest also means that a short squeeze could occur if positive news or buying interest emerges suddenly.
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Broader Market and Sector Comparison
Swiggy’s 1-day return of -1.86% contrasts with the sector’s modest decline of -0.16% and the Sensex’s fall of -0.75%, highlighting the stock’s relative weakness. This underperformance is a key factor behind the negative sentiment and increased short interest in derivatives.
Investors should also consider the broader e-commerce landscape, which is facing challenges such as rising competition, margin pressures, and regulatory scrutiny. These factors may be contributing to the cautious stance reflected in the derivatives market.
Outlook and Strategic Considerations
With the current Mojo Grade at Strong Sell and deteriorating technical indicators, Swiggy Ltd appears vulnerable to further downside in the near term. The surge in open interest and volume confirms that market participants are actively positioning for this scenario.
For traders, this environment offers opportunities to capitalise on bearish momentum through futures and options strategies. For long-term investors, it may be prudent to reassess exposure and consider alternative investments within the sector or broader market that demonstrate stronger fundamentals and technical resilience.
Summary
Swiggy Ltd’s derivatives market activity reveals a clear shift towards bearish positioning, with a 22.5% increase in open interest coinciding with a declining stock price and rising investor participation. The stock’s technical weakness, combined with a Strong Sell Mojo Grade, underscores the risks ahead. Market participants should monitor open interest trends closely, as they provide valuable insight into evolving market sentiment and potential price trajectories.
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