Open Interest and Volume Dynamics
On 18 February 2026, Ambuja Cements (symbol: AMBUJACEM) recorded an open interest (OI) of 85,173 contracts, up from 74,868 the previous day, marking an increase of 10,305 contracts or 13.76%. This rise in OI was accompanied by a futures volume of 37,895 contracts, indicating robust trading activity in the derivatives market. The futures value stood at ₹1,38,341.7 lakhs, while the options segment exhibited an even larger notional value of ₹7,18,50,71,869 lakhs, underscoring significant interest in options strategies.
The total combined value of futures and options contracts reached ₹1,38,873.5 lakhs, reflecting substantial liquidity and investor engagement. The underlying stock price was ₹515, down 1.49% on the day, marginally outperforming the cement sector’s decline of 2.01% but underperforming the Sensex’s 1.12% fall.
Market Positioning and Technical Indicators
Despite the surge in derivatives activity, Ambuja Cements remains in a technically weak position. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained downtrend. This technical backdrop is compounded by a delivery volume of 12.21 lakh shares on 18 February, which rose 31.23% compared to the five-day average, indicating increased investor participation but possibly more selling pressure.
Liquidity metrics suggest the stock is sufficiently liquid to support trades up to ₹1.74 crore based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.
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Implications of the Open Interest Surge
The sharp increase in open interest suggests that market participants are actively repositioning themselves in Ambuja Cements derivatives. Typically, a rising OI alongside falling prices indicates fresh short positions being established, reflecting bearish bets on the stock. Given the stock’s decline of 1.75% on the day, this pattern aligns with a negative market outlook.
Moreover, the substantial notional value in options contracts points to complex strategies, possibly including protective puts or speculative calls. However, the dominant trend appears to be cautious or negative, as evidenced by the company’s recent downgrade from a 'Sell' to a 'Strong Sell' rating by MarketsMOJO on 10 November 2025, with a low Mojo Score of 23.0 and a Market Cap Grade of 1.
Ambuja Cements, a large-cap player in the Cement & Cement Products sector with a market capitalisation of ₹1,27,014.65 crore, is facing headwinds amid sectoral pressures and broader market volatility. The stock’s underperformance relative to the Sensex and sector indices further emphasises the challenges ahead.
Sectoral and Broader Market Context
The cement sector has been under pressure due to rising input costs and subdued demand growth, factors that have weighed on Ambuja Cements’ valuation and investor sentiment. The stock’s inability to sustain levels above key moving averages signals a lack of bullish momentum, which is critical for a sector leader to regain investor confidence.
Investor participation, as reflected in delivery volumes, has increased, but this has not translated into price strength, suggesting that selling interest may be outweighing buying demand. The derivatives market activity corroborates this view, with increased open interest likely representing fresh short positions or hedging strategies against further downside risk.
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Investor Takeaways and Outlook
For investors, the current derivatives market activity in Ambuja Cements signals caution. The strong sell rating and deteriorating technical indicators suggest limited upside in the near term. The surge in open interest, coupled with falling prices, points to increased bearish positioning, which could pressure the stock further if sectoral headwinds persist.
However, the elevated liquidity and active participation also mean that the stock remains a focal point for traders seeking to capitalise on volatility. Those considering exposure should closely monitor open interest trends, volume patterns, and price action relative to moving averages to gauge potential reversals or further declines.
Given the company’s large-cap status and significant market presence, any fundamental improvements in demand or cost structures could quickly alter market sentiment. Until then, the derivatives data and technical signals advocate a cautious stance.
Summary
Ambuja Cements Ltd’s recent 13.8% increase in open interest highlights a surge in derivatives market activity amid a bearish technical setup and a strong sell rating. The stock’s underperformance relative to sector and benchmark indices, combined with rising delivery volumes, suggests increased investor caution and potential downside risk. Market participants should remain vigilant, analysing open interest and volume trends alongside fundamental developments to navigate this volatile phase effectively.
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