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 by 16,554 contracts, a 22.68% increase from the previous day’s 72,980 contracts to 89,534. This notable jump in OI was accompanied by a robust volume of 86,465 contracts traded, indicating strong participation from both institutional and retail investors. The futures value stood at ₹1,35,895.42 lakhs, while the options segment contributed a substantial ₹48,478.66 crores, culminating in a total derivatives value of approximately ₹1,42,810.77 lakhs.

This surge in open interest, coupled with elevated volumes, often reflects fresh capital entering the market or existing positions being rolled over or expanded. In Wipro’s case, the increase suggests that traders are actively repositioning, possibly anticipating further price movements or hedging existing exposures.

Price Action and Market Context

Wipro’s underlying stock price has been under pressure, hitting a new 52-week low of ₹226.26 on the same day, marking a steep intraday decline of 6.77%. The stock opened with a gap down of 2.79% and closed with a day’s loss of 4.22%, though it marginally outperformed the IT software sector, which fell by 5.89%. Notably, Wipro’s price is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained bearish trend.

Despite the negative price momentum, delivery volumes surged to 1.45 crore shares on 3 Feb, a 75.68% increase over the five-day average, indicating rising investor participation and possibly accumulation at lower levels. The stock also offers a relatively high dividend yield of 4.54%, which may attract income-focused investors amid the current weakness.

Market Positioning and Directional Bets

The sharp rise in open interest amid a falling stock price suggests a complex interplay of market strategies. Typically, an increase in OI with a declining price can indicate that new short positions are being established, reflecting bearish sentiment. However, it can also imply that long positions are being added as investors anticipate a potential rebound or are hedging existing short-term exposures.

Given Wipro’s current Mojo Score of 58.0 and a Mojo Grade downgraded from Buy to Hold on 19 Jan 2026, the market consensus appears cautious. The downgrade reflects concerns over near-term price weakness and sector headwinds, despite the company’s large-cap status and stable fundamentals. The Market Cap Grade of 1 underscores Wipro’s significant market presence, but also highlights the challenges in sustaining momentum amid sector-wide declines.

Investors should note that the IT software sector has been under pressure, with the Sensex showing a modest gain of 0.17% on the day, contrasting with the sector’s 5.88% decline. This divergence emphasises sector-specific challenges, including margin pressures and global demand uncertainties, which are likely influencing Wipro’s price action and derivatives activity.

Technical and Fundamental Considerations

Technically, Wipro’s breach of multiple moving averages signals a bearish trend, which may persist until a clear reversal pattern emerges. The stock’s liquidity remains adequate, with a trade size capacity of ₹8.41 crores based on 2% of the five-day average traded value, ensuring that institutional investors can execute sizeable trades without significant price impact.

Fundamentally, Wipro continues to offer a high dividend yield of 4.54%, which may provide some cushion for long-term investors. However, the recent downgrade to Hold suggests that the company’s near-term growth prospects and valuation multiples warrant careful scrutiny. Investors should weigh the potential for further downside against the possibility of a value-driven recovery supported by strong cash flows and dividend payouts.

Investor Implications and Outlook

For investors, the current spike in derivatives open interest in Wipro signals an active repositioning phase. Traders should monitor whether the increased OI is driven predominantly by fresh shorts or by long hedges, as this will influence the stock’s near-term trajectory. The stock’s underperformance relative to its sector and the broader market suggests caution, but the elevated delivery volumes and dividend yield provide some support for value-oriented investors.

Given the downgrade to Hold and the technical weakness, a conservative approach may be warranted until clearer signs of trend reversal emerge. Investors with a higher risk appetite might consider tactical positions in derivatives to capitalise on volatility, but should remain vigilant to sector developments and global IT demand trends.

Overall, Wipro’s derivatives activity reflects a market grappling with uncertainty, balancing between defensive positioning and opportunistic bets amid a challenging IT sector environment.

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