Wipro Ltd Sees Sharp Open Interest Surge Amid Market Volatility

Open Interest and Volume Dynamics

On 4 Feb 2026, Wipro’s open interest (OI) in derivatives rose sharply to 86,208 contracts from the previous 72,980, marking an 18.13% increase. This jump in OI was accompanied by a volume of 67,714 contracts, indicating robust trading activity. The futures segment alone accounted for a notional value of approximately ₹99,528.94 lakhs, while options contributed a staggering ₹3,88,33,45,296 lakhs, culminating in a total derivatives value exceeding ₹1,05,151.62 lakhs. Such figures underscore the growing interest among traders and institutional participants in positioning around Wipro’s stock.

Interestingly, this surge in derivatives activity contrasts with the underlying stock’s performance, which declined by 4.25% on the day, closing near its intraday low of ₹226.26 — a fresh 52-week low. The stock opened with a gap down of 2.79% and underperformed the broader IT sector, which itself fell by 6.25%. Despite this, Wipro marginally outperformed its sector by 1.6%, reflecting relative resilience amid sector-wide weakness.

Market Positioning and Directional Bets

The sharp rise in open interest alongside elevated volumes suggests that market participants are actively repositioning. The increase in OI typically indicates that new money is entering the market, either through fresh long or short positions. Given the stock’s recent downtrend — trading below all major moving averages (5-day, 20-day, 50-day, 100-day, and 200-day) — it is plausible that traders are either building short positions anticipating further declines or hedging existing long exposures.

Moreover, the delivery volume on 3 Feb surged to 1.45 crore shares, a 75.68% increase over the five-day average, signalling rising investor participation at the stock’s lower price levels. This heightened delivery volume may reflect bargain hunting by long-term investors or institutional accumulation, which could counterbalance short-term bearish sentiment in derivatives markets.

Wipro’s current market capitalisation stands at ₹2,45,404 crore, categorising it as a large-cap stock with sufficient liquidity to support sizeable trades. The stock’s liquidity, gauged by 2% of the five-day average traded value, supports trade sizes up to ₹8.41 crore, making it attractive for institutional players to execute sizeable positions without excessive market impact.

Technical and Fundamental Context

Technically, Wipro’s breach of multiple moving averages and the establishment of a new 52-week low point to a bearish trend in the near term. The stock’s decline after three consecutive days of gains suggests a potential trend reversal or consolidation phase. The open gap down at the start of the trading session further emphasises the prevailing negative sentiment.

Fundamentally, Wipro maintains a high dividend yield of 4.54%, which may attract income-focused investors despite the recent price weakness. However, the MarketsMOJO Mojo Score for Wipro currently stands at 58.0, with a Mojo Grade downgraded from Buy to Hold as of 19 Jan 2026. This reflects a cautious stance based on recent performance metrics and market conditions.

Sector and Broader Market Comparison

Within the Computers - Software & Consulting sector, Wipro’s relative outperformance against a sector decline of 6.25% is notable. The Sensex remained largely flat, down just 0.02%, indicating that the IT sector’s weakness is a sector-specific phenomenon rather than a broad market sell-off. This sectoral underperformance may be driven by concerns over global demand, margin pressures, or currency fluctuations impacting IT services companies.

Given the sector’s current weakness, the surge in derivatives open interest in Wipro could also reflect hedging activity by institutional investors seeking to protect gains or limit downside risk amid uncertain macroeconomic conditions.

Implications for Investors

For investors, the sharp increase in open interest combined with elevated volumes and delivery participation suggests a market at a crossroads. The derivatives market activity indicates that traders are actively positioning for potential volatility, either through directional bets or protective hedges. Meanwhile, the underlying stock’s technical weakness and sector headwinds caution against aggressive long positions at current levels.

Investors should closely monitor the evolution of open interest and price action in the coming sessions. A sustained increase in OI accompanied by price stabilisation or recovery could signal accumulation and a potential bottoming process. Conversely, if OI rises alongside further price declines, it may confirm bearish momentum and increased short interest.

Given Wipro’s large-cap status, liquidity, and dividend yield, it remains a key stock to watch within the IT sector. However, the recent downgrade to a Hold rating by MarketsMOJO reflects the need for prudence and selective exposure, especially in a volatile market environment.

Conclusion

The sudden surge in open interest in Wipro’s derivatives market highlights a significant shift in market positioning amid a challenging sectoral backdrop. While the stock’s technical indicators point to near-term weakness, the increased investor participation and high dividend yield provide some counterbalance. Market participants should weigh these factors carefully, considering both the risks and opportunities presented by the current market dynamics.

As always, staying informed on evolving market trends and utilising comprehensive analytical tools will be crucial for making well-informed investment decisions in Wipro and the broader IT sector.

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