Open Interest and Volume Dynamics
On 24 Feb 2026, Ambuja Cements recorded an open interest of 83,493 contracts, up from 74,066 the previous day, marking an absolute increase of 9,427 contracts or 12.73%. This rise in OI was accompanied by a futures volume of 35,270 contracts, indicating active trading interest in the stock’s derivatives. The combined futures and options value stood at approximately ₹1,02,251 lakhs, with futures contributing ₹99,030 lakhs and options an overwhelming ₹9,899.97 crores, underscoring the significant notional exposure in Ambuja’s derivatives market.
The underlying stock price closed at ₹512, down 0.59% on the day, underperforming the Cement & Cement Products sector’s decline of 0.37% and the Sensex’s sharper fall of 1.16%. This relative underperformance, coupled with rising OI, suggests that market participants may be positioning for increased volatility or directional moves in the near term.
Technical and Market Positioning Insights
Ambuja Cements is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend. The stock’s delivery volume on 23 Feb 2026 was 4.93 lakh shares, a steep 66.35% decline from its 5-day average delivery volume, indicating waning investor participation in the cash market. This divergence between rising derivatives activity and falling delivery volumes often points to speculative positioning rather than genuine accumulation.
Market cap-wise, Ambuja Cements is a large-cap stock valued at ₹1,26,619.16 crores, but its Mojo Score has deteriorated to 23.0 with a Strong Sell grade as of 10 Nov 2025, downgraded from Sell. This rating reflects concerns over the company’s near-term fundamentals and technical outlook, which may be influencing cautious investor sentiment despite the stock’s liquidity supporting trades up to ₹2.09 crores based on 2% of the 5-day average traded value.
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Interpreting the Open Interest Surge
The 12.7% jump in OI suggests fresh positions are being added rather than existing ones being squared off. This can imply that traders are either building directional bets or hedging existing exposures. Given the stock’s technical weakness and the Strong Sell Mojo Grade, it is plausible that the majority of new positions are bearish in nature, possibly through futures short positions or put options.
However, the exceptionally high options notional value relative to futures hints at significant option writing or buying activity. This could indicate a complex strategy involving volatility plays or protective hedging. The market may be anticipating increased price swings, especially given the stock’s failure to hold above key moving averages and the decline in delivery volumes.
Sector and Market Context
The Cement & Cement Products sector has been under pressure recently, with Ambuja Cements’ 1-day return of -0.59% slightly worse than the sector’s -0.37%. The Sensex’s broader decline of -1.16% reflects a risk-off environment, which often leads to increased hedging and speculative activity in derivatives. Ambuja’s large market cap and liquidity make it a preferred instrument for such strategies.
Investors should note that while rising OI can sometimes precede strong directional moves, the current technical and fundamental backdrop for Ambuja Cements suggests caution. The stock’s downgrade to Strong Sell and falling investor participation in the cash market reinforce the bearish narrative.
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Investor Takeaways and Outlook
For investors and traders, the current derivatives activity in Ambuja Cements signals a market bracing for volatility and potential downside risk. The combination of a Strong Sell rating, technical weakness, and falling delivery volumes suggests that fresh longs should be approached with caution. Conversely, those with existing positions may consider protective strategies or closely monitor open interest trends for signs of reversal.
Market participants should also watch for changes in option open interest and volume, which could provide clues on whether the market is positioning for a sharp move or a period of consolidation. Given the stock’s liquidity and large market cap, Ambuja Cements remains a key focus within the Cement sector for derivatives traders.
Conclusion
Ambuja Cements Ltd’s recent surge in open interest amidst a bearish technical setup and declining investor participation highlights a complex market positioning scenario. While the derivatives market activity points to increased speculative interest, the underlying fundamentals and technical indicators caution investors to remain vigilant. The stock’s downgrade to Strong Sell and underperformance relative to sector and benchmark indices reinforce the need for careful risk management in current market conditions.
Investors should continue to monitor open interest and volume patterns closely, alongside broader sector and market trends, to better gauge Ambuja Cements’ directional prospects in the near term.
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