Key Events This Week
23 Feb: Sharp open interest surge amid rising market momentum
24 Feb: Technical momentum shifts amid mixed indicator signals
27 Feb: Week closes at Rs.5,638.65 (+4.56%) outperforming Sensex
23 February 2026: Surge in Open Interest Signals Growing Market Activity
On 23 Feb, Alkem Laboratories’ stock price rose by 1.85% to close at Rs.5,492.25, outperforming the Sensex which gained 0.39%. This price appreciation coincided with a significant 21.92% jump in open interest in the derivatives segment, rising from 17,449 to 21,274 contracts. The surge in open interest, accompanied by a robust volume of 21,487 contracts, indicated heightened speculative and hedging activity among investors.
The futures segment alone accounted for a notional value of approximately ₹55,731.42 lakhs, while options contributed ₹9,015.27 crores, underscoring the stock’s liquidity and attractiveness for active trading. The stock’s gains over two consecutive sessions totalled 2.15%, supported by trading above its 5-day and 200-day moving averages, although resistance remained at the 20-day, 50-day, and 100-day averages.
Delivery volumes also rose sharply, with 1.86 lakh shares delivered on 20 Feb, a 45.16% increase over the five-day average, signalling stronger conviction among long-term investors. This combination of rising price, volume, and open interest suggested bullish positioning by market participants despite a cautious Mojo Grade of Hold and a Mojo Score of 62.0.
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24 February 2026: Mixed Technical Signals Amid Mildly Bullish Momentum
On 24 Feb, the stock edged up marginally by 0.08% to Rs.5,496.45, while the Sensex declined 0.78%. This day marked a subtle shift in Alkem Laboratories’ technical momentum from sideways to mildly bullish. Daily moving averages turned positive, with the stock trading above key short-term averages, signalling potential for incremental gains.
However, the broader technical picture remained mixed. Weekly and monthly MACD indicators stayed mildly bearish, suggesting that longer-term momentum had yet to confirm a sustained uptrend. The RSI hovered in neutral zones, indicating neither overbought nor oversold conditions, while Bollinger Bands diverged with a mildly bearish weekly outlook but mildly bullish monthly perspective.
Additional indicators such as the Know Sure Thing (KST) and On-Balance Volume (OBV) also presented cautious signals, with KST bearish on weekly and monthly charts and OBV showing no clear volume-supported trend. Despite these nuances, Alkem’s historical returns remain strong, with one-year gains of 18.96% compared to the Sensex’s 10.60%, and impressive longer-term outperformance over three, five, and ten years.
The stock’s Mojo Score of 62.0 and Hold rating reflect this balanced outlook, urging investors to monitor volume and price action closely before committing to a more aggressive stance.
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25 to 27 February 2026: Continued Gains Followed by Profit Booking
On 25 Feb, Alkem Laboratories surged 2.21% to Rs.5,617.85, outpacing the Sensex’s 0.41% gain. This rally extended into 26 Feb with a 2.37% rise to Rs.5,750.75, marking the week’s highest close. These gains reflected sustained buying interest, likely supported by the earlier open interest surge and improving technical momentum.
However, on 27 Feb, the stock corrected by 1.95% to Rs.5,638.65, while the Sensex fell 1.16%. This decline suggests some profit booking after the strong midweek rally, though the stock still closed the week with a robust 4.56% gain versus the Sensex’s 0.96% loss. Volume on the final day was lower at 1,432, indicating reduced trading activity amid the pullback.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.5,492.25 | +1.85% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.5,496.45 | +0.08% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.5,617.85 | +2.21% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.5,750.75 | +2.37% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.5,638.65 | -1.95% | 36,322.56 | -1.16% |
Key Takeaways
Positive Signals: The week’s 4.56% gain against a declining Sensex highlights Alkem Laboratories’ relative strength. The sharp open interest surge on 23 Feb indicates increased market participation and bullish positioning. Daily moving averages turning mildly bullish and the stock’s strong historical returns reinforce its resilience.
Cautionary Notes: Mixed technical indicators such as weekly and monthly MACD and KST remain mildly bearish, suggesting the uptrend is tentative. The profit booking on 27 Feb and lower volume highlight the need for confirmation of sustained momentum. The Hold Mojo Grade and moderate Mojo Score advise a measured approach amid sector headwinds.
Conclusion
Alkem Laboratories Ltd demonstrated a commendable weekly performance, gaining 4.56% and outperforming the Sensex by 5.52 percentage points. The week was characterised by a notable surge in derivatives open interest and a shift towards mildly bullish technical momentum, tempered by mixed signals from key indicators. Investors should continue to monitor volume trends, moving averages, and momentum oscillators to assess whether the current positive momentum can be sustained. The stock’s solid historical returns and sector fundamentals provide a supportive backdrop, but the cautious Mojo rating suggests vigilance amid evolving market conditions.
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