Angel One Ltd Falls 7.26%: 5 Key Factors Driving the Weekly Decline

16 February: Sharp Gap Down and Heavy Trading Amid Market Concerns

Angel One Ltd opened the week with a significant gap down, closing at Rs.2,575.55, down 4.38% on the day. The stock opened 5.71% lower than the previous close and touched an intraday low of Rs.2,443.45, a 9.28% drop, reflecting heightened market apprehension. Despite the broader Sensex rising 0.70%, Angel One underperformed sharply, continuing a four-day losing streak with cumulative losses of 8.4%.

Trading volumes were robust, with 8,07,196 shares exchanging hands, amounting to a value turnover of approximately ₹204.79 crores, placing the stock among the most actively traded by value. This liquidity underscores strong investor interest despite the negative price action.

Technical indicators showed a mixed picture: the stock traded above its 50-day and 100-day moving averages but below its 5-day, 20-day, and 200-day averages, signalling short-term weakness amid medium-term support. The elevated intraday volatility of 64.42% highlighted the uncertainty and rapid price swings during the session.

16 February: Derivatives Market Signals Bearish Sentiment

On the same day, Angel One witnessed a surge in put option activity ahead of the 24 February expiry. Put contracts at strike prices of Rs.2,300, Rs.2,400, and Rs.2,500 saw heavy volumes and open interest, with the Rs.2,500 strike alone recording 6,383 contracts traded and a turnover of ₹1029.26 lakhs. This concentration of put activity below the current market price indicated growing bearish positioning or hedging among investors.

Simultaneously, open interest in the derivatives segment surged by 21.9%, rising from 26,933 to 32,836 contracts, accompanied by a total volume of 49,898 contracts traded. The futures segment accounted for a notional value of ₹35,358.7 lakhs, while options contributed ₹28,573.6 crores, underscoring the stock’s prominence in the derivatives market.

This spike in open interest amid falling prices suggests new short positions or unwinding of longs, reflecting cautious market sentiment despite the stock’s medium-term technical supports.

18 February: Bullish Reversal Supported by Call Option Surge

After several days of decline, Angel One Ltd reversed course on 18 February, gaining 0.69% to close at Rs.2,588.00. The stock outperformed its capital markets sector by 1.59% and the Sensex by 0.43%, signalling a tentative recovery.

This positive price action was accompanied by a notable surge in call option activity ahead of the 24 February expiry. Strike prices of Rs.2,650 and Rs.2,700 attracted 9,605 and 7,744 contracts respectively, with combined turnover exceeding ₹1,995 crores. Open interest remained substantial at these strikes, indicating sustained bullish positioning.

Technical indicators supported this uptrend, with the stock trading above its 20-day, 50-day, 100-day, and 200-day moving averages, although it remained slightly below the 5-day average, suggesting short-term consolidation. Delivery volumes rose to 2.43 lakh shares, a 6.58% increase over the five-day average, reflecting growing investor confidence.

18 February: Put Option Activity Persists Despite Price Gains

Despite the bullish reversal, put option activity remained elevated, with 2,681 contracts traded at the Rs.2,600 strike, generating a turnover of ₹274.87 lakhs. Open interest at this strike stood at 1,232 contracts, signalling that investors continued to hedge or speculate on downside risks near the current price level.

This juxtaposition of rising call and put activity highlights a market at a technical inflection point, with participants positioning for potential volatility ahead of expiry. The stock’s Mojo Score remained at 44.0 with a Sell rating, reflecting analyst caution amid mixed signals.

18 February: Open Interest Rises Amid Positive Price Action

Open interest in Angel One’s derivatives segment increased by 12.8% to 34,378 contracts, accompanied by a volume of 44,517 contracts traded. The futures segment accounted for ₹16,356.7 lakhs in value, while options contributed ₹28,438.7 crores, culminating in a total derivatives value of ₹20,705.9 lakhs.

The stock closed at Rs.2,613, outperforming its sector by 1.59% and the Sensex by 2.04%, reversing a five-day losing streak. This combination of rising open interest, volume, and price suggests renewed bullish sentiment and fresh directional bets in the capital markets sector.

20 February: Valuation Adjusts to Fair Territory Amid Market Volatility

Angel One Ltd’s valuation metrics shifted from expensive to fair during the week, reflecting evolving market perceptions. The price-to-earnings (P/E) ratio moderated to 29.74, while the price-to-book value (P/BV) ratio stood at 3.94. These figures position the stock more reasonably relative to peers such as Go Digit General and Star Health Insurance, which trade at much higher multiples.

Comparative analysis shows Angel One’s EV to EBITDA ratio at 10.48, indicating a balanced enterprise value relative to earnings. The company’s return on equity remains healthy at 13.46%, though a negative capital employed figure complicates the interpretation of return on capital employed.

Despite a 52-week high of Rs.3,283.00 and a low of Rs.1,942.00, the stock closed the week at Rs.2,497.85, down 2.72% on 20 February. The market cap grade of 3 places Angel One in a mid-tier valuation category within its sector.

This valuation recalibration, combined with the downgrade to a Sell rating, suggests a cautious outlook amid ongoing volatility and sector-specific challenges.

Daily Price Comparison: Angel One Ltd vs Sensex (16-20 Feb 2026)

Key Takeaways

1. Significant Underperformance: Angel One Ltd declined 7.26% over the week, sharply underperforming the Sensex’s 0.39% gain, reflecting company-specific and sectoral headwinds.

2. Elevated Volatility and Liquidity: Heavy trading volumes and value turnover, alongside high intraday volatility, underscored active investor participation amid uncertainty.

3. Mixed Technical Signals: The stock’s position above medium-term moving averages contrasted with short-term weakness, indicating a complex technical landscape.

4. Derivatives Market Activity: Surges in put and call option volumes, alongside sharp open interest increases, highlighted divergent market views and hedging strategies ahead of the 24 February expiry.

5. Valuation Recalibration: The shift from expensive to fair valuation metrics suggests a more balanced risk-reward profile, though the downgrade to a Sell rating advises caution.

6. Investor Sentiment: Rising delivery volumes amid price declines indicate some accumulation, while heavy put option activity signals persistent bearish sentiment.

7. Sectoral Context: Angel One’s underperformance relative to the capital markets sector and Sensex points to company-specific challenges amid broader market volatility.

8. Near-Term Uncertainty: The interplay of bullish call option positioning and bearish put activity suggests potential volatility and a critical technical juncture as expiry approaches.

Conclusion

Angel One Ltd’s week was characterised by pronounced volatility, heavy trading activity, and mixed market signals. The stock’s 7.26% decline amid a rising Sensex highlights company-specific pressures and sectoral challenges. Derivatives market data revealed both bearish hedging and bullish speculative interest, reflecting uncertainty ahead of the 24 February expiry. The valuation shift to fair territory offers a more balanced perspective, yet the downgrade to a Sell rating and short-term technical weakness counsel prudence. Investors should closely monitor price action, open interest trends, and sector developments to navigate the evolving landscape of this capital markets stock.

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