Swiggy Ltd Sees Sharp Open Interest Surge Amid Mixed Technical Signals

Open Interest and Volume Dynamics

The derivatives market for Swiggy Ltd (symbol: SWIGGY) recorded a remarkable increase in open interest (OI), rising from 3,342 contracts previously to 4,897 contracts, marking a 46.53% jump. This substantial rise in OI was accompanied by a trading volume of 3,282 contracts, indicating robust participation from market participants. The futures segment alone accounted for a value of approximately ₹7,345.55 lakhs, while options contributed an overwhelming ₹97,342.69 crores, culminating in a total derivatives value of ₹7,569.22 crores.

The underlying stock price closed at ₹392, showing a 1.31% increase on the day, outperforming its sector by 0.91% and the Sensex by 1.51%. This outperformance follows two consecutive days of decline, suggesting a potential short-term trend reversal. However, the stock remains below its 5-day, 20-day, 50-day, and 100-day moving averages, despite trading above the 200-day moving average, indicating mixed technical signals.

Investor Participation and Liquidity

Investor interest in Swiggy Ltd has notably intensified, with delivery volume on 31 Dec reaching 36.96 lakh shares, a 62.66% increase compared to the five-day average delivery volume. This surge in delivery volume points to rising investor conviction and participation in the stock. Additionally, liquidity remains adequate, with the stock supporting a trade size of ₹4.43 crore based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.

Market Positioning and Directional Bets

The sharp increase in open interest alongside rising volumes suggests that market participants are actively repositioning themselves in Swiggy Ltd’s derivatives. The 46.53% rise in OI indicates fresh capital inflows and possibly new directional bets. Given the stock’s recent price recovery after a brief decline, traders may be anticipating a short-term bounce or a consolidation phase. However, the stock’s Mojo Score of 23.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 4 Dec 2025, reflect underlying fundamental concerns that temper bullish enthusiasm.

Swiggy Ltd’s market capitalisation stands at ₹1,07,487 crore, categorising it as a mid-cap stock within the E-Retail/E-Commerce sector. Despite the recent price uptick of 1.61% in one day, the sector’s 1-day return was 0.75%, and the Sensex gained a mere 0.10%, highlighting Swiggy’s relative outperformance. Yet, the stock’s position below key moving averages suggests that sustained upward momentum remains uncertain.

Technical and Fundamental Assessment

Technically, Swiggy Ltd’s price action presents a nuanced picture. The stock’s position above the 200-day moving average suggests a long-term support level, yet its failure to breach shorter-term averages signals resistance and potential consolidation. The recent trend reversal after two days of decline may attract short-term traders looking for momentum plays, but the overall technical setup remains cautious.

Fundamentally, the company’s Mojo Grade was downgraded to Strong Sell from Sell on 4 Dec 2025, reflecting deteriorating financial metrics or sectoral headwinds. The Mojo Score of 23.0 is low, indicating weak fundamentals relative to peers. The Market Cap Grade of 2 further underscores the mid-cap status with moderate liquidity and market presence. These factors suggest that while derivatives activity is elevated, underlying risks persist.

Implications for Investors and Traders

The surge in open interest and volume in Swiggy Ltd’s derivatives points to increased hedging and speculative activity. Traders may be positioning for volatility or directional moves based on upcoming earnings, sector developments, or macroeconomic factors affecting the E-Retail/E-Commerce space. The mixed technical signals and fundamental concerns advise caution, with a preference for risk management strategies.

Investors should closely monitor changes in open interest alongside price movements to gauge the strength of directional bets. A sustained increase in OI with rising prices could confirm bullish sentiment, whereas a rise in OI with falling prices might indicate bearish positioning or short-covering. Given the current data, the market appears to be in a state of indecision, balancing between short-term optimism and longer-term caution.

Outlook and Conclusion

Swiggy Ltd’s recent open interest surge in derivatives highlights a market keenly attuned to potential price movements and volatility. While the stock’s short-term price action shows signs of recovery, the broader technical and fundamental landscape remains challenging. The strong sell rating and low Mojo Score caution investors against aggressive long positions without thorough risk assessment.

Market participants should watch for confirmation of trend direction through sustained price and volume patterns, alongside evolving open interest data. The derivatives market activity suggests that traders are actively hedging or speculating, making Swiggy Ltd a stock to monitor closely for potential trading opportunities or risk management adjustments.

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