Wipro Ltd Sees Significant Open Interest Surge Amid Price Decline and Market Volatility

Open Interest and Volume Dynamics

On 12 Feb 2026, Wipro's open interest (OI) rose sharply to 1,19,865 contracts from 1,05,449 the previous day, marking an increase of 14,416 contracts or 13.67%. This expansion in OI was accompanied by a substantial trading volume of 1,14,589 contracts, indicating active participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹1,18,823 lakhs, while the options segment's notional value was significantly higher at ₹66,538.78 crores, culminating in a total derivatives value of ₹1,27,946 lakhs.

The increase in open interest alongside high volume typically reflects fresh positions being established rather than existing ones being squared off. However, in Wipro's case, this surge coincides with a sharp price decline, suggesting that market participants may be initiating bearish bets or hedging existing long exposures.

Price Action and Moving Averages

Wipro's stock price has been under pressure, falling by 4.37% on the day and touching an intraday low of ₹218.5, a new 52-week low. The stock has declined for two consecutive sessions, losing 4.91% over this period. Notably, the weighted average price indicates that most volume traded near the day's low, reinforcing the bearish sentiment.

Technically, Wipro is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. This technical weakness is mirrored in the broader IT software sector, which declined by 4.79% on the same day, while the Sensex fell a more modest 0.55%, highlighting sector-specific headwinds.

Investor Participation and Delivery Volumes

Investor participation appears to be waning, with delivery volumes dropping sharply. On 11 Feb 2026, delivery volume stood at 42.62 lakh shares, down 40.08% compared to the five-day average. This decline in delivery volume suggests that investors are less inclined to hold the stock in physical form, possibly reflecting uncertainty or a shift towards short-term trading strategies.

Despite the bearish price action, Wipro continues to offer a relatively attractive dividend yield of 4.79%, which may provide some cushion for long-term investors amid volatility.

Market Positioning and Potential Directional Bets

The sharp rise in open interest amid falling prices suggests that traders are increasingly positioning for further downside or volatility in Wipro's shares. The derivatives data implies that fresh short positions may be accumulating, as the stock trades below critical technical levels and investor confidence appears subdued.

Alternatively, some participants might be using options strategies to hedge existing long exposures or to speculate on volatility spikes. The large notional value in options contracts supports this view, indicating active hedging or complex strategies beyond simple directional bets.

Wipro's Mojo Score currently stands at 52.0 with a Mojo Grade of Hold, downgraded from Buy on 19 Jan 2026. This reflects a cautious stance given the recent deterioration in price momentum and technical indicators. The company remains a large-cap heavyweight with a market capitalisation of ₹2,32,662 crore, but the current market environment demands careful monitoring of positioning and risk.

Sectoral and Broader Market Context

The IT software sector's decline of 4.79% on the day, outpacing the Sensex's modest 0.55% fall, underscores sector-specific challenges such as margin pressures, global demand concerns, or currency fluctuations. Wipro's outperformance relative to the sector by 0.67% on the day is marginal and overshadowed by its own downtrend and fresh lows.

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 and retail participants can execute sizeable trades without significant market impact.

Implications for Investors

For investors, the current surge in open interest combined with declining prices and subdued delivery volumes signals caution. The technical breakdown below all major moving averages and the fresh 52-week low suggest that downside risks remain elevated in the near term.

However, Wipro's strong dividend yield and large-cap status may appeal to value-oriented investors willing to weather short-term volatility. The downgrade in Mojo Grade from Buy to Hold reflects this balanced view, recommending a wait-and-watch approach rather than aggressive accumulation.

Market participants should closely monitor derivatives positioning and volume trends for signs of a potential reversal or further deterioration. The interplay between futures and options activity will be crucial in gauging market sentiment and directional conviction.

Conclusion

Wipro Ltd.'s recent open interest surge in derivatives amid falling prices highlights a market grappling with uncertainty and repositioning. While fresh bearish bets appear to be building, the stock's fundamentals and dividend yield provide some support. Investors are advised to remain vigilant, analysing both technical signals and derivatives market data to navigate this evolving landscape effectively.

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