Open Interest and Volume Dynamics
On 22 Jan 2026, Swiggy Ltd’s open interest (OI) surged from 37,924 contracts to 42,010, marking an increase of 4,086 contracts or 10.77%. This rise in OI was accompanied by a volume of 37,760 contracts, indicating robust participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹90,778 lakhs, while options contributed a staggering ₹7,463 crore, culminating in a total derivatives value of ₹92,032 lakhs.
The underlying stock price opened with a gap up of 2.53%, reaching an intraday high of ₹347.85, a 3.98% gain from the previous close. However, it also touched a low of ₹326.5, down 2.41%, before settling with a weighted average price skewed towards the lower end of the day’s range. This price behaviour, coupled with rising OI, suggests a tug-of-war between buyers and sellers in the derivatives market.
Market Positioning and Sentiment
Despite the intraday volatility, Swiggy’s stock closed with a 1.7% decline, underperforming its sector by 2.33% and the Sensex by 1.88%. The stock is trading below all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicating a sustained bearish trend. Investor participation has intensified, with delivery volume on 21 Jan rising by 74.72% compared to the five-day average, signalling increased interest but also potential profit-taking or repositioning.
The surge in open interest alongside rising volume often points to fresh directional bets. In Swiggy’s case, the mixed price action and underperformance relative to peers imply that market participants may be hedging or speculating on further downside, despite short-term rallies. The company’s Mojo Score of 23.0 and a recent downgrade from Sell to Strong Sell on 4 Dec 2025 reinforce the cautious stance among analysts and investors alike.
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Technical and Fundamental Context
Swiggy Ltd operates in the highly competitive E-Retail/E-Commerce sector, with a market capitalisation of ₹90,773 crore, categorising it as a mid-cap stock. The company’s current market cap grade stands at 2, reflecting moderate size but limited market strength. The stock’s persistent trading below all major moving averages signals a lack of upward momentum, while the recent downgrade to a Strong Sell grade by MarketsMOJO highlights deteriorating fundamentals or market perception.
From a technical perspective, the rising open interest amid falling prices often indicates that new short positions are being established, or existing shorts are being reinforced. This is consistent with the stock’s 1-day return of -1.7%, which contrasts with the sector’s positive 0.7% and Sensex’s modest 0.18% gains. The divergence suggests that Swiggy is facing sector-specific headwinds or company-specific concerns that are not affecting the broader market.
Implications for Investors and Traders
The surge in derivatives open interest and volume points to increased hedging activity and speculative positioning. Traders should note that while the stock showed an intraday high near ₹348, the weighted average price skewed lower, indicating that most traded volumes occurred closer to the day’s low. This pattern often reflects selling pressure or cautious buying, which could foreshadow further downside or consolidation.
Given the strong sell rating and negative price momentum, investors may consider reducing exposure or employing protective strategies such as stop-loss orders or options hedges. Conversely, speculative traders might look for short-term volatility plays, capitalising on the heightened activity in the derivatives market. However, the overall sentiment remains bearish until the stock breaks above key moving averages with sustained volume support.
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Broader Market and Sector Considerations
The E-Retail/E-Commerce sector has been under pressure due to rising competition, margin compression, and evolving consumer behaviour. Swiggy’s underperformance relative to its sector peers and the Sensex reflects these challenges. The stock’s liquidity remains adequate, with a trade size capacity of ₹9.04 crore based on 2% of the five-day average traded value, ensuring that institutional and retail investors can transact without significant price impact.
Investor focus will likely remain on quarterly earnings, user growth metrics, and cost management initiatives to gauge whether Swiggy can reverse its downtrend. Until then, the derivatives market activity suggests that participants are bracing for continued volatility and potential downside risks.
Conclusion
Swiggy Ltd’s recent surge in open interest and volume in the derivatives market highlights a significant shift in market positioning amid a bearish technical backdrop. Despite intraday price rallies, the stock’s underperformance relative to its sector and the broader market, combined with a strong sell rating, signals caution for investors. The heightened derivatives activity suggests that traders are actively hedging or speculating on further price movements, making Swiggy a stock to watch closely for directional cues in the coming weeks.
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