Open Interest and Volume Dynamics
On 22 Jan 2026, Swiggy Ltd’s open interest (OI) surged from 37,924 contracts to 43,077, marking an increase of 5,153 contracts or 13.59%. This rise in OI was accompanied by a volume of 43,411 contracts, indicating robust trading activity in the derivatives market. The futures segment alone accounted for a notional value of approximately ₹1,08,133 lakhs, while options contributed a staggering ₹8,161.77 crores, culminating in a total derivatives value of ₹1,09,480 lakhs.
The underlying stock price opened with a gap up of 2.53%, reaching an intraday high of ₹347.85 (up 3.98%) before retreating to a low of ₹325 (down 2.85%). The weighted average price skewed towards the lower end of the day’s range, suggesting that despite early optimism, selling pressure intensified as the session progressed.
Market Positioning and Sentiment
The surge in open interest alongside elevated volumes typically signals fresh capital entering the market, either through new long positions or short sellers increasing their exposure. In Swiggy’s case, the mixed price action and the stock trading below all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicate a prevailing bearish sentiment among institutional and retail investors alike.
Investor participation has notably increased, with delivery volumes on 21 Jan rising by 74.72% compared to the five-day average, reflecting heightened interest in the stock. However, the stock’s 1-day return of -2.88% starkly contrasts with the sector’s modest gain of 0.66% and the Sensex’s 0.22% rise, underscoring Swiggy’s relative underperformance.
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Mojo Score and Analyst Ratings
Swiggy Ltd currently holds a Mojo Score of 23.0, categorised as a Strong Sell, an upgrade from its previous Sell rating as of 4 Dec 2025. This downgrade reflects deteriorating fundamentals and technical indicators, signalling caution for investors. The company’s market capitalisation stands at ₹89,682.59 crores, placing it in the mid-cap segment, but its market cap grade is a low 2, indicating limited liquidity and investor interest relative to peers.
Technical and Fundamental Context
The stock’s failure to sustain gains above key moving averages suggests that short-term momentum remains weak. The rising open interest amid falling prices typically points to an increase in short positions, as traders anticipate further downside. This is corroborated by the weighted average price gravitating towards the day’s low, implying that sellers dominated the latter part of the trading session.
Moreover, the delivery volume spike indicates that investors are actively repositioning, possibly liquidating long holdings or establishing fresh shorts. The divergence between Swiggy’s performance and its sector peers further emphasises the stock’s vulnerability in the current market environment.
Potential Directional Bets and Market Implications
The open interest increase of over 5,000 contracts in a single session is significant, suggesting that market participants are taking decisive directional bets. Given the stock’s technical weakness and negative price action relative to the sector, it is plausible that a majority of these new positions are bearish, anticipating further declines.
However, the initial gap up and intraday high near ₹348 indicate that some traders are attempting to capitalise on short-term rebounds or volatility. This tug-of-war between bulls and bears is typical in stocks undergoing consolidation or awaiting fresh catalysts.
Investors should monitor subsequent sessions for confirmation of trend direction, paying close attention to changes in open interest, volume patterns, and price behaviour around key technical levels.
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Liquidity and Trading Considerations
Swiggy’s liquidity profile remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of approximately ₹9.04 crores based on 2% of the five-day average. This ensures that institutional investors can enter or exit positions without excessive market impact, although the low market cap grade suggests caution for very large trades.
Given the current market positioning and technical backdrop, traders should exercise prudence and consider risk management strategies when engaging with Swiggy derivatives. The elevated open interest and volume may lead to increased volatility, presenting both opportunities and risks.
Outlook and Strategic Implications
In summary, the sharp rise in open interest combined with Swiggy’s underperformance relative to its sector and the broader market points to a cautious outlook. The strong sell rating and deteriorating technical indicators suggest that downside risks remain elevated in the near term.
Investors and traders should closely monitor open interest trends, price action around moving averages, and volume spikes for signs of either capitulation or a potential reversal. Until clear bullish signals emerge, the prevailing market sentiment appears tilted towards further weakness in Swiggy Ltd.
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