Wipro Ltd Sees Sharp Open Interest Surge Amid Volatile Market Conditions

Open Interest and Volume Dynamics

On 4 Feb 2026, Wipro's open interest (OI) in derivatives rose sharply to 83,903 contracts, up from 72,980 the previous session, marking a 14.97% increase. This jump in OI was accompanied by a volume of 56,034 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹79,428 lakhs, while options contributed a substantial ₹32,511.93 crores, culminating in a total derivatives value of ₹84,110 lakhs. Such figures underscore the intense speculative and hedging interest in Wipro’s stock amid recent price volatility.

Price Action and Market Context

Wipro’s share price opened with a gap down of 2.79%, eventually touching an intraday low of ₹226.26, a fresh 52-week low and a 6.77% drop from the previous close. This decline came after three consecutive days of gains, signalling a potential trend reversal. The stock underperformed its sector, which itself fell by 5.47%, but outperformed the broader Sensex, which was largely flat with a marginal 0.05% gain. Notably, Wipro’s price is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained bearish momentum.

Investor Participation and Liquidity

Investor participation has risen markedly, with delivery volume on 3 Feb reaching 1.45 crore shares, a 75.68% increase over the five-day average. This heightened delivery volume suggests that long-term investors are either accumulating at lower levels or liquidating positions amid uncertainty. The stock’s liquidity remains adequate, supporting trade sizes up to ₹8.41 crores based on 2% of the five-day average traded value, ensuring that institutional and retail investors can transact without significant price impact.

Market Positioning and Directional Bets

The surge in open interest alongside elevated volumes suggests that market participants are actively repositioning. The increase in OI typically indicates fresh money entering the market rather than existing positions being squared off. Given the stock’s recent price weakness and breach of key support levels, it is plausible that traders are establishing bearish positions, anticipating further downside or volatility.

However, the sizeable open interest in options, with a large notional value, also points to complex strategies such as hedging or volatility plays. The high dividend yield of 4.54% at current prices may attract income-focused investors, potentially limiting the downside in the medium term. Yet, the technical indicators and price action suggest caution, as Wipro remains under pressure amid a weak IT sector backdrop.

Mojo Score and Analyst Ratings

Wipro currently holds a Mojo Score of 58.0, categorised as a 'Hold' rating, reflecting a neutral stance amid mixed signals. This represents a downgrade from a previous 'Buy' rating assigned on 19 Jan 2026, signalling a reassessment of the stock’s near-term prospects. The market cap grade remains at 1, consistent with its large-cap status and liquidity profile. The downgrade aligns with the recent price weakness and the technical deterioration observed across multiple moving averages.

Sector and Broader Market Comparison

Within the Computers - Software & Consulting sector, Wipro’s performance has lagged, with the sector declining 5.47% on the day compared to Wipro’s 3.84% drop. This relative outperformance, despite a negative day, may indicate some defensive qualities or selective buying interest. The Sensex’s near-flat performance contrasts with the sector’s weakness, highlighting sector-specific headwinds such as global IT spending concerns and currency fluctuations impacting earnings forecasts.

Implications for Investors

Investors should approach Wipro with caution given the recent technical breakdown and increased open interest signalling potential volatility ahead. The stock’s high dividend yield offers some cushion, but the downgrade in Mojo Grade and the breach of multiple moving averages suggest that further downside risk cannot be discounted. Traders might consider monitoring option open interest for shifts in put-call ratios and strike price concentrations to gauge evolving market sentiment.

Long-term investors may view the current weakness as an opportunity to accumulate selectively, especially if the company’s fundamentals remain intact and IT sector headwinds ease. However, near-term momentum appears negative, and risk management strategies should be employed to mitigate potential losses.

Technical Outlook

From a technical perspective, Wipro’s failure to hold above key moving averages and the formation of a new 52-week low are bearish signals. The open gap down and intraday volatility reinforce the likelihood of continued selling pressure. Support levels near ₹220 and ₹210 will be critical to watch in the coming sessions. A sustained recovery above the 50-day moving average near ₹240 would be required to shift the technical outlook towards neutral or bullish.

Conclusion

The sharp increase in open interest in Wipro’s derivatives market amid a falling stock price and sector weakness highlights a complex interplay of bearish positioning and hedging activity. While the stock’s fundamentals and dividend yield provide some support, technical indicators and market sentiment currently favour caution. Investors and traders should closely monitor volume and open interest trends alongside price action to navigate the evolving landscape effectively.

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