Adani Green Energy Sees Sharp Open Interest Surge Amid Bullish Market Positioning

Open Interest and Volume Dynamics

On 17 Feb 2026, Adani Green Energy’s open interest in derivatives climbed to 78,499 contracts from 71,005 the previous day, marking an increase of 7,494 contracts or 10.55%. This rise in OI, coupled with a volume of 86,937 contracts, indicates fresh positions being established rather than existing ones being squared off. The futures segment alone accounted for a value of approximately ₹1,09,819.54 lakhs, while options contributed a staggering ₹41,942,469,402 lakhs, culminating in a total derivatives value of ₹1,17,058.75 lakhs. Such elevated activity underscores the stock’s growing prominence among traders and hedgers alike.

Underlying the derivatives activity, the stock’s spot price closed at ₹1,011, having touched an intraday high of ₹1,016.7, up 2.57% on the day. This price action outperformed the Power sector’s 0.14% gain and the broader Sensex’s 0.17% rise, reflecting strong relative strength. Notably, Adani Green has been on a two-day winning streak, delivering cumulative returns of 6.5%, further bolstering bullish sentiment.

Technical Positioning and Moving Averages

From a technical standpoint, Adani Green is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a robust uptrend. This alignment of moving averages often attracts momentum traders and institutional investors, contributing to the surge in open interest. The stock’s delivery volume on 16 Feb surged to 13.17 lakh shares, an 89.75% increase over the five-day average, indicating rising investor participation and conviction in the current price trajectory.

Liquidity remains ample, with the stock’s average traded value supporting trade sizes up to ₹5.12 crore based on 2% of the five-day average traded value. This liquidity profile facilitates sizeable institutional trades without significant market impact, further encouraging derivative activity.

Market Positioning and Sentiment Analysis

The sharp increase in open interest suggests that market participants are positioning for further upside in Adani Green Energy. The stock’s mojo score currently stands at 13.0, with a mojo grade of Strong Sell, downgraded from Sell on 5 Jan 2026. This divergence between technical momentum and fundamental mojo rating highlights a complex market narrative where short-term bullishness coexists with cautious long-term outlooks.

Adani Green’s market capitalisation is ₹1,66,776.59 crore, categorising it as a large-cap stock within the Power sector. Despite the strong recent price performance, the mojo grade’s deterioration reflects concerns over valuation, sectoral headwinds, or company-specific risks. Investors should weigh these factors carefully when interpreting the surge in derivatives activity.

Directional bets appear to be skewed towards bullish strategies, as evidenced by the rising futures open interest and the stock’s outperformance relative to sector peers. The increase in delivery volumes further confirms genuine investor interest rather than speculative intraday trading. However, the sizeable options value hints at complex hedging or volatility plays, which could temper the upside if market conditions shift.

Implications for Investors and Traders

For investors, the current market positioning in Adani Green Energy suggests a cautiously optimistic outlook. The stock’s technical strength and rising open interest point to potential continuation of the uptrend in the near term. However, the underlying mojo grade downgrade advises prudence, signalling that fundamental challenges remain unresolved.

Traders may find opportunities in the derivatives market given the heightened liquidity and active participation. The 10.55% increase in open interest alongside strong volume supports the thesis of fresh directional bets, likely favouring long positions. Yet, the substantial options market value indicates that volatility could increase, necessitating careful risk management.

Comparative Sector and Benchmark Context

Within the Power sector, Adani Green Energy’s recent 2.14% one-day return significantly outpaced the sector’s 0.14% gain and the Sensex’s 0.17% rise, underscoring its leadership in the current market phase. The stock’s ability to sustain gains above all major moving averages further differentiates it from peers, many of which remain range-bound or underperforming.

However, the sector faces ongoing challenges including regulatory scrutiny, fluctuating commodity prices, and evolving renewable energy policies. These factors contribute to the cautious mojo grading despite the stock’s technical strength. Investors should monitor sector developments closely alongside Adani Green’s price action and derivatives market signals.

Outlook and Strategic Considerations

In summary, the surge in open interest and volume in Adani Green Energy’s derivatives market reflects heightened investor interest and a probable directional bias towards further price appreciation. The stock’s technical indicators and delivery volumes support this bullish momentum, although fundamental concerns temper the overall outlook.

Market participants should consider a balanced approach, leveraging derivatives for tactical positioning while remaining mindful of the stock’s strong sell mojo grade and sector risks. Continuous monitoring of open interest trends, volume patterns, and price behaviour will be crucial to realising optimal entry and exit points.

Given the evolving market dynamics, investors may also explore alternative large-cap Power stocks with more favourable mojo scores and fundamentals, as identified by advanced screening tools.

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