Open Interest and Volume Dynamics
On 17 February 2026, Wipro's open interest (OI) in derivatives rose sharply from 1,29,327 contracts to 1,45,850 contracts, an increase of 16,523 contracts or 12.78%. This notable rise in OI was accompanied by a futures volume of 1,13,837 contracts, indicating robust trading activity. The futures value stood at ₹1,94,444.05 lakhs, while the options segment exhibited an enormous notional value of ₹55,113.46 crores, underscoring the scale of derivatives interest in the stock.
The total derivatives value traded aggregated to ₹2,01,270.48 lakhs, reflecting strong liquidity and active participation from institutional and retail investors alike. The underlying stock price closed at ₹211, just 1.14% above its 52-week low of ₹209.01, signalling persistent downward pressure.
Price Performance and Moving Averages
Wipro's share price declined by 1.95% on the day, underperforming the Computers - Software & Consulting sector, which fell by 1.24%. The Sensex, in contrast, posted a modest gain of 0.20%, highlighting sector-specific weakness. Intraday, the stock touched a low of ₹210.26, down 2.52%, with the weighted average price skewed towards the lower end of the day's range, indicating selling pressure.
Technically, Wipro is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish trend. This technical weakness is compounded by rising delivery volumes, which surged 47.55% to 1.44 crore shares on 17 February compared to the five-day average, suggesting increased investor participation but with a bearish bias.
Market Positioning and Directional Bets
The surge in open interest alongside rising volumes typically indicates fresh positions being taken rather than existing ones being squared off. Given the stock's underperformance and proximity to its 52-week low, the increased OI likely reflects directional bets favouring further downside or hedging strategies by market participants.
Options data, with an exceptionally high notional value, suggests that traders are actively using puts and calls to manage risk or speculate on volatility. The elevated open interest in futures contracts further supports the view of increased directional exposure, possibly anticipating continued weakness or volatility in Wipro's share price.
Fundamental Context and Market Sentiment
Wipro Ltd., a large-cap company with a market capitalisation of ₹2,22,392 crores, operates in the Computers - Software & Consulting sector. Despite its size and established presence, the company currently holds a Mojo Score of 47.0 with a Sell grade, downgraded from Hold on 17 February 2026. This downgrade reflects deteriorating fundamentals or market sentiment, which is mirrored in the stock's price action and derivatives activity.
Investors should note the stock's attractive dividend yield of 5.1%, which may provide some cushion amid price weakness. However, the prevailing technical and derivatives market signals suggest caution, as the stock faces downward momentum and increased speculative positioning.
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Implications for Investors and Traders
The marked increase in open interest and volume in Wipro's derivatives signals a shift in market positioning, with participants likely anticipating further price volatility or a continuation of the downtrend. Traders should be wary of the stock's technical weakness and the sector's relative underperformance.
Given the downgrade to a Sell rating and the stock trading below all major moving averages, investors may consider reducing exposure or employing hedging strategies. The high dividend yield offers some defensive appeal, but it may not offset the risks posed by deteriorating momentum and increased speculative activity.
Market participants should also monitor changes in options open interest and put-call ratios for further clues on directional bias and volatility expectations.
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Broader Market Context and Sectoral Trends
While the Sensex managed a slight gain, the Computers - Software & Consulting sector lagged, with Wipro among the underperformers. This divergence highlights sector-specific challenges, including margin pressures, competitive dynamics, and global IT spending uncertainties.
Wipro's current market cap grade of 1 indicates limited upside potential relative to peers, reinforcing the cautious stance. Investors should weigh these factors alongside technical and derivatives market signals before making allocation decisions.
In summary, the surge in open interest and volume in Wipro's derivatives market reflects heightened investor activity amid a bearish technical backdrop and a recent downgrade to Sell. While the stock offers a high dividend yield, the prevailing market positioning suggests a cautious approach is warranted.
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