Open Interest and Volume Dynamics
The open interest (OI) in United Spirits futures and options contracts rose from 40,171 to 44,723 contracts, an increase of 4,552 contracts or 11.33% on 31 Dec 2025. This expansion in OI was accompanied by a futures volume of 27,641 contracts, indicating active participation in the derivatives market. The combined futures and options value traded stood at approximately ₹22,579 lakhs, with futures contributing ₹20,388.5 lakhs and options an enormous ₹13,815.2 crores in notional value, underscoring the stock’s liquidity and interest among derivatives traders.
The underlying stock price closed at ₹1,399, down 2.96% on the day, underperforming the beverages sector by 2.06% and the broader Sensex by 3.05%. The stock touched an intraday low of ₹1,390, with the weighted average traded price skewed towards the lower end, suggesting selling pressure during the session.
Price Trends and Moving Averages
Technically, United Spirits remains above its 100-day moving average but trades below its 5-day, 20-day, 50-day, and 200-day moving averages. This mixed technical picture indicates short- to medium-term weakness despite some longer-term support. The falling investor participation is evident from the delivery volume, which dropped by 30.07% to 4.75 lakh shares on 31 Dec compared to the five-day average, signalling reduced conviction among long-term holders.
Market Positioning and Directional Bets
The surge in open interest alongside a declining price often points to fresh short positions being initiated or existing shorts being added to, as traders anticipate further downside. However, the sizeable volume and elevated futures and options values also suggest that some participants may be hedging or positioning for volatility ahead, possibly due to upcoming corporate announcements or sectoral developments.
Given the stock’s large market capitalisation of ₹1,04,444 crores and its classification as a large-cap beverage company, institutional investors and proprietary desks are likely active in the derivatives market. The increase in OI by over 4,500 contracts in a single day is significant for a stock of this size and liquidity, reflecting a shift in market sentiment or strategy.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Mojo Score Upgrade Reflects Improving Fundamentals
MarketsMOJO’s proprietary Mojo Score for United Spirits has improved to 71.0, upgrading the stock’s grade from Hold to Buy as of 29 Dec 2025. This upgrade reflects positive changes in the company’s financial health, valuation metrics, and market positioning. The market cap grade remains at 1, indicating the stock’s large-cap status and relative stability compared to smaller peers.
Despite the recent price weakness, the improved Mojo Grade suggests that the company’s fundamentals are strengthening, potentially providing a base for future price appreciation. Investors should note that the stock’s liquidity supports sizeable trades, with a typical trade size of ₹3.1 crores based on 2% of the five-day average traded value, making it accessible for institutional and retail participants alike.
Sector and Market Context
The beverages sector has seen moderate volatility recently, with United Spirits underperforming the sector by nearly 2.1% on the day. The broader Sensex was largely flat, gaining 0.06%, indicating that the stock’s weakness is more idiosyncratic than market-driven. This divergence often attracts derivatives traders looking to exploit relative value opportunities or hedge sector exposure.
Implications for Investors and Traders
The combination of rising open interest, elevated volumes, and price weakness suggests that market participants are actively repositioning. For investors, this may signal caution in the near term, as increased short interest or hedging activity could weigh on the stock. However, the improved Mojo Grade and large-cap status provide a counterbalance, indicating underlying strength and potential for recovery.
Traders should monitor subsequent open interest changes and price action closely. A sustained increase in OI with rising prices would confirm bullish positioning, while continued OI growth amid falling prices would reinforce bearish sentiment. Additionally, the skew in option values and put-call ratios could provide further clues on directional bias and volatility expectations.
Want to dive deeper on United Spirits Ltd? There's a real-time research report diving right into the fundamentals, valuations, peer comparison, financials, technicals and much more!
- - Real-time research report
- - Complete fundamental analysis
- - Peer comparison included
Conclusion: Mixed Signals Amid Active Derivatives Trading
United Spirits Ltd’s derivatives market activity on 31 Dec 2025 highlights a complex interplay of factors. The sharp rise in open interest and volume points to increased market engagement and potential directional bets, while the stock’s price underperformance and technical positioning suggest caution. The upgrade in Mojo Score to Buy signals improving fundamentals, which may attract longer-term investors despite short-term volatility.
Market participants should continue to analyse open interest trends, volume patterns, and price movements in the coming sessions to better understand the evolving sentiment. Given the stock’s liquidity and large-cap stature, United Spirits remains a key focus for both institutional and retail investors navigating the beverages sector landscape.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →
