Swiggy Ltd Sees Sharp Open Interest Surge Amid Bearish Market Signals

Open Interest and Volume Dynamics

On 9 January 2026, Swiggy Ltd's open interest (OI) in derivatives rose sharply to 25,880 contracts from the previous 23,410, marking an increase of 2,470 contracts or 10.55%. This expansion in OI was accompanied by a futures volume of 12,993 contracts, indicating robust trading activity. The combined futures and options value stood at approximately ₹2,76,38.5 lakhs, with futures contributing ₹26,995.35 lakhs and options dominating at ₹34,73,18.19 lakhs, underscoring the significant interest in Swiggy’s options market.

The underlying stock price closed at ₹352, continuing its recent downtrend. Swiggy has now recorded losses for two consecutive sessions, falling by 3.16% over this period. The stock underperformed its sector by 0.55% and the Sensex by 0.19% on the day, reflecting broader market pressures and company-specific concerns.

Technical and Market Positioning Insights

Technically, Swiggy is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend. This technical weakness is compounded by rising investor participation, with delivery volume on 8 January reaching 73.86 lakh shares, a 21.27% increase over the five-day average delivery volume. Such rising participation amid falling prices often indicates aggressive selling or short positioning by market participants.

The liquidity profile remains adequate, with the stock’s traded value supporting a trade size of approximately ₹9.19 crore based on 2% of the five-day average traded value. This liquidity ensures that the recent surge in open interest and volume is supported by genuine market interest rather than thin trading conditions.

Interpreting the Open Interest Surge

The 10.55% rise in open interest, coupled with increased volume, suggests that new positions are being established rather than existing ones being closed. Given the stock’s ongoing price decline and technical weakness, this build-up in OI likely reflects increased bearish bets by traders. Market participants may be adding short futures positions or buying put options to hedge or speculate on further downside.

Swiggy’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating on 4 December 2025. This downgrade in sentiment aligns with the technical and derivatives market signals, reinforcing the negative outlook. The company’s market capitalisation is ₹97,301 crore, placing it in the mid-cap category, but its Market Cap Grade remains low at 2, indicating limited institutional favourability.

Sector and Market Context

Within the E-Retail and E-Commerce sector, Swiggy’s underperformance is notable. The sector itself has been relatively stable, with a 1-day return of -0.05%, while the Sensex declined by 0.94%. Swiggy’s 1-day return of -0.75% and its consecutive losses over two days highlight company-specific challenges that may be weighing on investor confidence.

Investors should also consider the broader market environment, where rising open interest in derivatives often precedes significant price moves. The current positioning suggests that market participants are bracing for further volatility or a continuation of the downtrend in Swiggy’s shares.

Implications for Investors and Traders

For investors, the current derivatives market activity signals caution. The strong sell rating and deteriorating technical indicators suggest that Swiggy Ltd may face further downside pressure in the near term. Traders might consider the increased open interest as an opportunity to capitalise on volatility, particularly through options strategies that benefit from downward moves.

However, the rising delivery volumes indicate that some investors are still actively participating in the stock, which could lead to short-term price swings. Those holding long positions should monitor key support levels closely, while short sellers may find the current environment conducive to adding or maintaining positions.

Outlook and Conclusion

Swiggy Ltd’s recent surge in open interest and volume in the derivatives market, combined with its weak price performance and technical indicators, paints a bearish picture. The stock’s downgrade to a Strong Sell Mojo Grade reflects the growing consensus of negative sentiment among market participants. While liquidity remains sufficient for sizeable trades, the prevailing market positioning suggests that investors should remain cautious and consider alternative opportunities within the sector or broader market.

As the derivatives market continues to evolve, monitoring open interest trends alongside price action will be crucial for anticipating Swiggy’s next directional move. For now, the data points towards a continuation of the downtrend, with increased volatility expected in the coming sessions.

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