APL Apollo Tubes Ltd Sees Sharp Open Interest Surge Amid Strong Market Momentum

Open Interest and Volume Dynamics

On 27 Jan 2026, APL Apollo Tubes recorded an open interest (OI) of 48,595 contracts in its futures and options, marking a substantial increase of 6,720 contracts or 16.05% compared to the previous OI of 41,875. This rise in OI, coupled with a trading volume of 59,891 contracts, indicates fresh capital inflows and growing participation from both institutional and retail investors.

The futures segment alone accounted for a value of approximately ₹1,88,467 lakhs, while the options segment's notional value stood at an impressive ₹24,904.33 crores. The combined derivatives turnover reached ₹1,91,803 lakhs, underscoring the stock's liquidity and attractiveness for active trading strategies.

Price Performance and Technical Strength

APL Apollo Tubes has outperformed its sector by 1.11% on the day, with a 3.05% gain, closing near its intraday high of ₹2,087.9. The stock has been on a three-day winning streak, delivering a cumulative return of 9.57% during this period. It is currently trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling strong upward momentum and technical resilience.

Investor participation has also surged, with delivery volumes on 23 Jan reaching 7.05 lakh shares, a remarkable 160.3% increase over the five-day average delivery volume. This heightened delivery volume suggests genuine accumulation rather than speculative trading, reinforcing the bullish narrative.

Market Positioning and Directional Bets

The sharp increase in open interest alongside rising prices and volumes suggests that market participants are taking fresh long positions, anticipating further upside in APL Apollo Tubes. The stock’s underlying value currently stands at ₹2,055, and the recent price action pushing above ₹2,080 indicates strong demand at higher levels.

Such a pattern typically reflects bullish sentiment, with traders and investors positioning for continued gains. The 16.05% rise in OI is particularly notable given the broader market context, where the Sensex recorded a marginal decline of 0.06% on the same day, highlighting APL Apollo Tubes’ relative strength within the iron and steel sector.

Moreover, the stock’s market capitalisation of ₹57,276 crore places it firmly in the mid-cap category, attracting attention from growth-oriented funds and sector specialists. The company’s Mojo Score of 88.0 and an upgraded Mojo Grade to Strong Buy (from Buy on 13 Oct 2025) further validate the positive outlook, reflecting improved fundamentals and technical parameters.

Sectoral and Market Context

The iron and steel products sector has been witnessing a gradual recovery, supported by infrastructure spending and industrial demand. APL Apollo Tubes, as a key player in this space, benefits from these tailwinds. Its recent outperformance relative to the sector’s 1.84% gain on the day underscores its leadership position and investor preference.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹3.92 crore based on 2% of the five-day average traded value. This ensures that institutional investors can enter or exit positions without significant price impact, further enhancing the stock’s appeal.

Implications for Investors

For investors, the surge in open interest combined with strong price action and volume signals a favourable entry point. The stock’s technical indicators, including its position above all major moving averages, suggest sustained momentum. Additionally, the upgrade to a Strong Buy rating by MarketsMOJO reflects confidence in the company’s earnings growth prospects and sectoral positioning.

However, investors should remain mindful of broader market volatility and sector-specific risks such as raw material price fluctuations and regulatory changes. Monitoring open interest trends and volume patterns in the coming sessions will be crucial to confirm the durability of the current bullish trend.

Conclusion

APL Apollo Tubes Ltd is currently exhibiting strong bullish signals in its derivatives market, with a notable 16.05% increase in open interest and robust volume supporting a fresh rally. The stock’s technical strength, combined with positive sector dynamics and an upgraded Mojo Grade, positions it as a compelling opportunity for investors seeking exposure to the iron and steel products sector. Continued monitoring of market positioning and volume trends will be essential to gauge the sustainability of this momentum.

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