Wipro Ltd Sees Sharp Open Interest Surge Amid Volatile Market Conditions

Open Interest and Volume Dynamics

The open interest (OI) in Wipro’s futures and options contracts rose sharply from 72,980 to 90,402 contracts, an increase of 17,422 contracts or 23.87% on 4 February 2026. This surge in OI was accompanied by a volume of 94,281 contracts, indicating robust participation from traders and investors. The futures value stood at ₹1,49,258.64 lakhs, while the options value was a staggering ₹52,725.44 crores, culminating in a total derivatives value of approximately ₹1,56,722 lakhs.

Such a pronounced rise in open interest, especially when paired with high volumes, often reflects fresh capital entering the market or existing participants increasing their exposure. In Wipro’s case, this activity is particularly notable given the stock’s recent price action.

Price Action and Market Context

On the day of the OI surge, Wipro’s stock price declined by 3.61%, underperforming the broader IT - Software sector, which fell by 5.53%. Despite this, Wipro outperformed its sector by 1.65%, suggesting relative resilience. The stock opened with a gap down of 2.79% and hit a new 52-week low of ₹226.26, marking a 6.77% intraday drop from previous levels.

Wipro is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish technical setup. The stock’s delivery volume on 3 February surged to 1.45 crore shares, a 75.68% increase over the five-day average, indicating rising investor participation despite the downtrend.

Sector and Broader Market Comparison

While Wipro’s stock price has weakened, the Sensex managed a modest gain of 0.32% on the same day, highlighting the stock’s divergence from the broader market trend. The IT sector’s decline of 5.53% reflects ongoing sectoral pressures, possibly due to global macroeconomic concerns or earnings disappointments among peers.

Wipro’s market capitalisation stands at ₹2,45,404 crores, categorising it as a large-cap stock with a market cap grade of 1. The company’s current dividend yield of 4.54% remains attractive for income-focused investors, even as the stock faces short-term headwinds.

Interpreting the Open Interest Surge

The sharp increase in open interest amid a falling stock price suggests that market participants are actively repositioning. This could indicate a build-up of short positions, as traders anticipate further downside, or alternatively, it may reflect hedging activity by long-term investors seeking protection against volatility.

Given the volume and OI data, it appears that fresh capital is flowing into the derivatives market, with participants possibly taking directional bets on continued weakness or volatility in Wipro’s shares. The fact that the stock has fallen after three consecutive days of gains adds weight to the bearish interpretation.

Quality and Momentum Metrics

Wipro’s Mojo Score currently stands at 58.0, with a Mojo Grade of Hold, downgraded from Buy on 19 January 2026. This reflects a cautious stance by analysts, factoring in the recent price weakness and technical deterioration. The downgrade signals that while the stock remains fundamentally sound, near-term momentum is subdued.

Investors should note that 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. This ensures that institutional and retail investors can transact without significant market impact.

Potential Directional Bets and Market Positioning

The derivatives activity suggests a complex market positioning scenario. The increase in open interest alongside a price decline may indicate that traders are establishing fresh short positions, betting on further downside. Alternatively, some participants might be using options strategies such as protective puts or collars to hedge existing long exposure.

Given the stock’s technical weakness and sectoral headwinds, the market appears to be pricing in cautious sentiment. However, the relatively high dividend yield and large-cap status provide a cushion for long-term investors, potentially limiting downside risk.

Outlook and Investor Considerations

Investors should approach Wipro with a balanced view. The recent downgrade to Hold and the technical weakness suggest caution in the near term. However, the company’s strong market capitalisation, attractive dividend yield, and relative outperformance versus the sector provide some support.

Market participants should closely monitor open interest trends and volume patterns in the coming sessions to gauge whether the current surge represents a sustained shift in sentiment or a temporary repositioning. Additionally, broader sectoral developments and global IT spending trends will be key determinants of Wipro’s trajectory.

For traders, the derivatives market activity offers opportunities to capitalise on volatility, but also warrants careful risk management given the stock’s recent lows and uncertain momentum.

Summary

Wipro Ltd.’s derivatives market has seen a notable increase in open interest by nearly 24%, coinciding with a price decline to a 52-week low. This suggests active repositioning by investors, likely reflecting cautious or bearish sentiment amid sectoral weakness. While the stock remains a large-cap with a solid dividend yield, technical indicators and analyst downgrades counsel prudence. Monitoring ongoing derivatives activity and sector trends will be crucial for investors seeking to navigate Wipro’s evolving market landscape.

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