Swiggy Ltd Sees Sharp Open Interest Surge Amid Mixed Market Signals

Open Interest and Volume Dynamics

The latest data reveals that Swiggy's open interest rose from 30,014 contracts to 33,068, an increase of 3,054 contracts or 10.18% on the day. This rise in OI was accompanied by a futures volume of 17,123 contracts, with the futures segment valued at approximately ₹29,368 lakhs. The options segment, however, dwarfs this with an estimated value exceeding ₹4,185 crores, indicating substantial hedging and speculative activity in the options market.

The total derivatives value traded stood at ₹30,302 lakhs, underscoring robust participation from institutional and retail traders alike. The underlying stock price opened with a gap-up of 4.11%, touching an intraday high of ₹328.35, marking a 7.16% rise from the previous close. This outperformance was notable against the sector’s 1.57% gain and the Sensex’s 2.64% advance, suggesting selective buying interest in Swiggy despite broader market trends.

Price Action and Moving Averages

Despite the intraday strength, Swiggy remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling persistent downward pressure. The weighted average price indicates that most volume traded near the day’s low, hinting at cautious profit-taking or resistance at higher levels. This divergence between price spikes and volume-weighted price levels suggests a battle between bulls attempting to regain control and bears defending key resistance zones.

Investor participation appears to be waning, with delivery volumes falling by 25.36% to 69.69 lakh shares on 2 February compared to the 5-day average. This decline in delivery volume, despite price gains, may imply that short-term traders are driving the rally rather than long-term holders, raising questions about the sustainability of the move.

Market Positioning and Directional Bets

The surge in open interest alongside a moderate increase in volume suggests fresh positions are being established rather than existing ones being squared off. Given the stock’s 2.81% gain on the day and outperformance relative to its sector, it is plausible that traders are positioning for a short-term rebound or a volatility-driven move.

However, the broader technical context remains bearish. Swiggy’s Mojo Score stands at 29.0, with a Mojo Grade of Strong Sell, recently downgraded from Sell on 4 December 2025. The market cap grade is a low 2, reflecting mid-cap status but limited quality metrics. These ratings indicate that fundamental and technical factors are not yet aligned for a sustained uptrend.

Open interest increases in derivatives often precede significant price moves, but the direction depends on whether the new positions are predominantly long or short. The fact that the weighted average price is closer to the day’s low, despite a gap-up open, may imply that aggressive short sellers are active, or that longs are cautious. This mixed signal warrants close monitoring of subsequent sessions for confirmation.

Liquidity and Trading Considerations

Swiggy’s liquidity remains adequate for sizeable trades, with the stock capable of handling trade sizes up to ₹11 crore based on 2% of the 5-day average traded value. This liquidity supports active participation from institutional investors and hedge funds, which could amplify price swings in either direction depending on market sentiment.

Investors should also note the decline in delivery volumes, which may reflect reduced conviction among long-term holders. This factor, combined with the stock trading below all key moving averages, suggests that any rally could be vulnerable to profit-taking or technical resistance.

Sector and Market Context

Swiggy operates within the highly competitive E-Retail and E-Commerce sector, which has seen mixed performance amid evolving consumer behaviour and regulatory scrutiny. The sector’s 1.57% gain on the day was modest compared to Swiggy’s 2.82% rise, highlighting the stock’s relative strength. However, the broader market, represented by the Sensex, advanced 2.64%, indicating that Swiggy’s gains are in line with general market optimism but not outperforming significantly.

Given the mid-cap status of Swiggy with a market capitalisation of ₹86,963.68 crore, the stock remains sensitive to sectoral shifts and macroeconomic factors such as inflation, interest rates, and consumer spending patterns. Investors should weigh these external factors alongside technical signals when considering exposure.

Outlook and Investor Takeaways

The recent surge in open interest in Swiggy’s derivatives market signals increased trader interest and potential volatility ahead. While the stock’s intraday gains and gap-up opening suggest bullish sentiment, the technical backdrop and declining delivery volumes caution against over-optimism.

Investors should monitor subsequent price action closely, particularly whether Swiggy can sustain moves above key moving averages and maintain higher delivery volumes, which would indicate stronger investor conviction. Conversely, failure to hold gains or a reversal in open interest trends could signal renewed selling pressure.

Given the current Mojo Grade of Strong Sell and the downgrade from Sell in early December, a cautious approach is advisable. Traders with a higher risk appetite may look for short-term trading opportunities around volatility spikes, while long-term investors might prefer to await clearer signs of fundamental improvement and technical confirmation.

Conclusion

Swiggy Ltd’s derivatives market activity on 3 February 2026 highlights a complex interplay of bullish and bearish forces. The 10.18% rise in open interest, combined with a strong intraday price performance, points to active repositioning by market participants. However, the stock’s position below all major moving averages and falling delivery volumes temper enthusiasm.

For investors and traders, the key will be to watch how open interest evolves in the coming sessions and whether volume patterns confirm a sustained directional move. Until then, Swiggy remains a stock with mixed signals, warranting careful analysis and risk management.

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