Open Interest and Volume Dynamics
On 4 Feb 2026, Wipro’s open interest (OI) in derivatives rose sharply to 87,705 contracts from 72,980 the previous session, an increase of 14,725 contracts or 20.18%. This notable expansion in OI was accompanied by a volume of 76,876 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹1,10,285 lakhs, while options contributed a staggering ₹44,232.75 crores in notional value, culminating in a total derivatives value exceeding ₹1,16,624.96 lakhs.
The surge in OI alongside elevated volumes typically reflects fresh positions being established rather than existing ones being squared off. This pattern suggests that market participants are actively repositioning themselves, possibly anticipating further price movements in Wipro’s stock.
Price Action and Technical Context
Wipro’s share price opened with a gap down of 2.79%, eventually hitting an intraday low of ₹226.26, marking a new 52-week low and a decline of 6.77% from the previous close. The stock underperformed its sector, which itself fell by 6.28%, though it marginally outperformed the sector by 1.9% on the day. Notably, Wipro is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained bearish trend.
This technical weakness, combined with the fresh lows, may have prompted traders to increase their short positions or hedge existing long exposures, contributing to the rise in open interest.
Sector and Market Positioning
The broader IT - Software sector has been under pressure, with a 6.28% decline on the day, reflecting concerns over global demand and margin pressures. Wipro’s relative outperformance, despite its price drop, indicates some resilience. However, the stock’s Mojo Score has been downgraded from a Buy to a Hold on 19 Jan 2026, with a current score of 58.0, reflecting a more cautious stance by analysts.
Market cap grading remains at 1, confirming Wipro’s status as a large-cap stock with significant liquidity. Delivery volumes have surged by 75.68% to 1.45 crore shares on 3 Feb, signalling rising investor participation amid the volatility. The stock’s dividend yield remains attractive at 4.54%, which may provide some support to long-term investors despite near-term headwinds.
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Interpreting the Derivatives Activity
The sharp increase in open interest, coupled with high volumes, often signals that traders are taking fresh directional bets. Given the stock’s recent downtrend and breach of key support levels, it is plausible that a significant portion of this activity represents increased short interest or put option buying as a hedge against further declines.
However, the sizeable notional value in options also suggests that some participants may be positioning for volatility or potential rebounds, using strategies such as straddles or protective calls. The mixed signals in derivatives positioning highlight the uncertainty prevailing among market participants regarding Wipro’s near-term trajectory.
Fundamental and Technical Outlook
Wipro’s downgrade to a Hold rating by MarketsMOJO reflects tempered expectations amid a challenging macroeconomic environment and sectoral headwinds. The company’s large market capitalisation of ₹2,45,404 crore and strong dividend yield provide some defensive qualities, but the technical weakness cannot be ignored.
Investors should monitor the stock’s ability to hold above the ₹226 level, which represents the recent low. A sustained breach could trigger further downside, while a recovery above the 50-day moving average may signal a potential trend reversal.
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Investor Takeaway
Wipro’s recent derivatives activity and price action underscore a period of heightened uncertainty and repositioning. The 20.18% jump in open interest signals that traders are actively recalibrating their exposure, likely favouring bearish strategies given the stock’s technical breakdown and sector weakness.
Long-term investors may find comfort in the company’s large-cap status and attractive dividend yield, but should remain cautious until a clear technical recovery emerges. Short-term traders should closely watch open interest trends and volume patterns for clues on the evolving market sentiment.
Overall, Wipro’s Hold rating and Mojo Score of 58.0 reflect a balanced view, acknowledging both the risks and potential opportunities in the current environment.
Broader Market Context
The Sensex closed marginally higher by 0.11% on the day, contrasting with the IT sector’s sharp decline. This divergence highlights sector-specific challenges impacting software and consulting firms like Wipro. Investors should consider sectoral trends alongside company-specific factors when making allocation decisions.
Conclusion
The surge in open interest in Wipro’s derivatives market is a clear indicator of shifting market positioning amid a volatile backdrop. While the stock faces near-term headwinds, the active derivatives market suggests that investors are preparing for multiple scenarios. Monitoring these developments will be crucial for making informed investment decisions in the coming weeks.
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