Wipro Ltd Sees Sharp Open Interest Surge Amidst Weak Price Action

Open Interest and Volume Dynamics

On 12 Feb 2026, Wipro's open interest (OI) in futures and options contracts rose sharply to 1,18,806 contracts from 1,05,449 the previous day, marking an increase of 13,357 contracts or 12.67%. This expansion in OI was accompanied by a futures volume of 1,04,411 contracts, indicating robust trading activity. The combined futures and options value stood at approximately ₹1,14,320 lakhs, with futures contributing ₹1,06,068 lakhs and options an overwhelming ₹60,974 crores in notional value.

Despite this surge in derivatives activity, the underlying stock price declined by 4.46% on the day, closing near its intraday low of ₹218.5, a fresh 52-week trough. The weighted average price of traded shares skewed towards the lower end of the day’s range, signalling selling pressure. Wipro’s share price currently trades below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – underscoring a bearish technical setup.

Market Positioning and Directional Bets

The simultaneous rise in open interest and falling prices often points to fresh short positions being initiated or existing shorts being added to, as traders anticipate further downside. The 12.7% jump in OI suggests that participants are actively positioning for continued weakness or volatility in Wipro’s shares. This is corroborated by the stock’s underperformance relative to its sector and benchmark indices; the IT - Software sector declined by 4.8%, while Sensex fell a modest 0.43% on the same day.

Interestingly, delivery volumes have contracted sharply, with the delivery volume on 11 Feb falling by 40.08% to 42.62 lakh shares compared to the five-day average. This decline in investor participation at the delivery level indicates that long-term holders may be stepping back, while short-term traders dominate the market action. The high dividend yield of 4.79% at the current price offers some defensive appeal, but it has not been sufficient to arrest the recent downtrend.

Mojo Score and Analyst Ratings

Wipro currently holds a Mojo Score of 52.0, placing it in the 'Hold' category, a downgrade from its previous 'Buy' rating as of 19 Jan 2026. This reflects a cautious stance by analysts amid the recent price weakness and mixed technical signals. The company’s market capitalisation stands at a robust ₹2,32,662 crore, categorising it as a large-cap stock within the Computers - Software & Consulting sector.

The downgrade from 'Buy' to 'Hold' suggests that while Wipro remains fundamentally sound, near-term headwinds and market volatility warrant a more measured approach. Investors are advised to monitor the evolving derivatives activity closely, as the surge in open interest could presage increased volatility or a potential directional breakout.

Technical and Sectoral Context

Technically, Wipro’s share price trading below all major moving averages signals a bearish trend. The stock has recorded a consecutive two-day decline, losing 5.11% over this period, marginally underperforming the sector’s 4.8% fall. The IT - Software sector itself is experiencing pressure, reflecting broader concerns around global technology spending and macroeconomic uncertainties.

Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹5.03 crore based on 2% of the five-day average traded value. This ensures that institutional investors can enter or exit positions without significant market impact, which may explain the active derivatives positioning.

Implications for Investors

The sharp increase in open interest amid falling prices and subdued delivery volumes suggests that traders are positioning for further downside or increased volatility in Wipro’s shares. This could be driven by concerns over earnings growth, sectoral headwinds, or broader market sentiment. Investors should weigh the high dividend yield and large-cap stability against the technical weakness and cautious analyst outlook.

Given the downgrade to 'Hold' and the current market dynamics, a prudent approach would be to monitor key support levels and open interest trends closely. Any sustained rise in open interest accompanied by price recovery could signal a reversal, while continued OI growth with price declines may confirm bearish momentum.

Conclusion

Wipro Ltd.’s recent surge in open interest amidst a weakening price trend highlights a market grappling with uncertainty and positioning for potential volatility. The stock’s technical weakness, coupled with a downgrade in analyst sentiment, suggests caution for investors. However, the company’s large-cap status, attractive dividend yield, and sectoral importance provide some defensive qualities.

Market participants should closely track derivatives activity and price movements in the coming sessions to gauge whether the current open interest build-up signals a bearish continuation or a possible reversal. Until clearer signals emerge, a balanced approach with attention to risk management remains advisable.

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