Open Interest and Volume Dynamics
On 23 Jan 2026, Swiggy Ltd’s open interest (OI) in derivatives rose sharply by 6,499 contracts, a 17.34% increase from the previous day’s 37,482 to 43,981. This notable rise in OI was accompanied by a futures volume of 24,429 contracts, indicating robust trading activity. The combined futures and options value stood at approximately ₹53,940.29 lakhs, with futures contributing ₹52,965.24 lakhs and options an overwhelming ₹4,885.05 crores, underscoring the substantial derivatives market interest in the stock.
The underlying stock price closed at ₹315, having touched an intraday low of ₹310.15, down 3.17% on the day. The weighted average price skewed towards the lower end of the day’s range, suggesting selling pressure dominated trading sessions. This price action, coupled with rising OI, points to increased bearish positioning or hedging activity by market participants.
Technical and Trend Analysis
Swiggy’s technical indicators reveal a challenging environment. The stock is trading below all major moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained downtrend. Over the past two trading days, the stock has declined by 5.8%, underperforming its sector by 1.86% and the Sensex by 1.16% cumulatively. This underperformance reflects weakening investor confidence amid broader market volatility.
Investor participation has notably increased, with delivery volume on 22 Jan reaching 1.26 crore shares, a 90.14% rise compared to the five-day average. This surge in delivery volume suggests that investors are either liquidating positions or repositioning amid the recent price weakness. The stock’s liquidity remains adequate, with a tradable size of ₹11.22 crores based on 2% of the five-day average traded value, facilitating active market participation.
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Market Positioning and Directional Bets
The sharp increase in open interest alongside rising volumes suggests that traders are actively repositioning in Swiggy’s derivatives ahead of potential directional moves. Given the stock’s recent downtrend and technical weakness, the surge in OI likely reflects increased short interest or protective put buying rather than bullish speculation.
Swiggy’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 4 Dec 2025. This downgrade in sentiment aligns with the technical deterioration and bearish market positioning. The company’s market capitalisation is ₹87,143.10 crores, categorising it as a mid-cap stock within the E-Retail/E-Commerce sector. Despite its sizeable market cap, the stock’s recent performance and derivatives activity indicate investor caution.
Options market data further supports this bearish outlook. The options value at ₹4,885.05 crores dwarfs futures value, suggesting significant hedging or speculative activity in puts and calls. The elevated options interest may be driven by traders seeking downside protection or positioning for continued volatility in the stock price.
Comparative Sector and Index Performance
Swiggy’s 1-day return of -1.44% contrasts with the sector’s modest gain of 0.20% and the Sensex’s slight decline of 0.28%. This relative underperformance highlights the stock’s vulnerability amid broader market stability. The E-Retail/E-Commerce sector has generally shown resilience, but Swiggy’s technical and derivatives signals suggest it is lagging peers and may face further downside pressure.
Investors should note the stock’s consecutive two-day decline and the fact that more volume has traded near the day’s low price, indicating persistent selling interest. This pattern often precedes further downside or consolidation at lower levels, especially when combined with rising open interest in derivatives.
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Implications for Investors
The current derivatives activity and price action in Swiggy Ltd suggest that investors should exercise caution. The strong sell rating and deteriorating technicals imply that the stock may continue to face downward pressure in the near term. The surge in open interest, particularly in options, indicates that market participants are either hedging existing positions or speculating on further declines.
For long-term investors, the stock’s underperformance relative to its sector and the broader market warrants a reassessment of portfolio exposure. Traders may consider monitoring open interest trends and volume patterns closely to gauge shifts in market sentiment and potential reversal signals.
Given the stock’s liquidity and active derivatives market, Swiggy remains a focal point for speculative and hedging strategies. However, the prevailing bearish momentum and technical weakness suggest that directional bets should be approached with prudence.
Conclusion
Swiggy Ltd’s recent surge in open interest and elevated trading volumes in derivatives reflect heightened market attention amid a weakening price trend. The stock’s technical indicators and relative underperformance reinforce a cautious outlook, supported by a strong sell Mojo Grade. Investors and traders should carefully analyse evolving market positioning and volume dynamics before committing to directional trades in this mid-cap E-Retail/E-Commerce stock.
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