Swiggy Ltd Sees Sharp Open Interest Surge Amid Bearish Market Signals

Open Interest and Volume Dynamics

The latest data reveals that Swiggy’s open interest (OI) in derivatives rose from 37,482 contracts to 43,175, an increase of 5,693 contracts or 15.19% on a day when the stock price declined by 1.59%. This rise in OI, coupled with a futures volume of 20,323 contracts, indicates that new positions are being established rather than existing ones being squared off. The total futures value traded stood at approximately ₹42,462 lakhs, while options turnover was substantially higher at ₹4,227.8 crores, underscoring active hedging and speculative interest in the stock’s options market.

Interestingly, the weighted average price of traded volumes skewed closer to the day’s low of ₹310.15, suggesting that most trading activity occurred near the lower price range. This pattern often points to bearish sentiment, with sellers dominating and buyers hesitant to step in at higher levels.

Price Performance and Technical Indicators

Swiggy’s stock has been under pressure for the past two consecutive sessions, losing 5.22% over this period. It has underperformed its sector by 1.33% and the Sensex by 1.62% on the latest trading day. The stock currently trades below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend and weak technical momentum.

Investor participation has notably increased, with delivery volume on 22 January reaching 1.26 crore shares, a 90.14% rise compared to the five-day average. This surge in delivery volume indicates that investors are actively transacting in the stock, possibly repositioning amid the recent volatility. Liquidity remains adequate, with the stock supporting trade sizes up to ₹11.22 crore based on 2% of the five-day average traded value, facilitating smooth execution of large orders.

Market Positioning and Sentiment Analysis

The sharp increase in open interest amid falling prices suggests that market participants are taking fresh short positions or adding to existing ones, anticipating further downside. This is consistent with Swiggy’s recent downgrade from a 'Sell' to a 'Strong Sell' rating by MarketsMOJO on 4 December 2025, reflecting deteriorating fundamentals and weak outlook. The company’s Mojo Score currently stands at 23.0, indicating poor overall quality and market sentiment.

Swiggy’s market capitalisation is approximately ₹87,046 crore, placing it in the mid-cap segment within the E-Retail/E-Commerce sector. Despite its sizeable market cap, the stock’s recent underperformance relative to its sector peers and the broader market highlights growing investor caution. The sector itself has shown modest gains, with a 0.33% increase on the latest trading day, contrasting with Swiggy’s negative returns.

Derivative Market Implications

The elevated open interest and volume in Swiggy’s futures and options contracts point to increased hedging and speculative activity. The options market’s substantial turnover suggests that traders are actively positioning for potential volatility, possibly through strategies such as protective puts or bearish spreads. The futures market’s rising open interest, combined with price weakness, typically signals that bearish bets are being placed with conviction.

Given the stock’s technical weakness and negative momentum, investors should be cautious about directional bets. The current market positioning implies that downside risks remain elevated in the near term. However, the increased liquidity and active participation also provide opportunities for nimble traders to capitalise on volatility through short-term strategies.

Outlook and Investor Considerations

Swiggy Ltd’s recent open interest surge in derivatives, combined with its technical and fundamental challenges, suggests that investors should approach the stock with caution. The strong sell rating and low Mojo Score reflect underlying concerns about growth prospects and valuation. While the stock remains liquid and actively traded, the prevailing market sentiment is bearish, with increased short interest and hedging activity.

Investors with a higher risk tolerance may consider short-term trading opportunities arising from volatility, but long-term investors should weigh the risks carefully. Monitoring changes in open interest, volume patterns, and price action will be crucial to gauge shifts in market positioning and potential reversals.

Overall, Swiggy’s derivatives market activity provides a clear signal of cautious sentiment and heightened uncertainty, underscoring the importance of disciplined risk management and thorough analysis before committing capital.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →