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

Open Interest and Volume Dynamics

On 9 February 2026, APL Apollo Tubes recorded an open interest (OI) of 32,822 contracts in its derivatives, marking a substantial increase of 4,121 contracts or 14.36% compared to the previous OI of 28,701. This surge in OI is accompanied by a futures volume of 15,620 contracts, indicating active trading and fresh positions being established by market participants.

The combined futures and options value stands at approximately ₹14,055.7 lakhs, with futures contributing ₹12,538.4 lakhs and options an overwhelming ₹10,893.1 crores in notional value. Such elevated derivatives activity underscores the growing interest in APL Apollo Tubes as a key trading and investment theme within the Iron & Steel Products sector.

Price Action and Technical Strength

APL Apollo Tubes has been on a strong upward trajectory, hitting an intraday high of ₹2,244.2 on the day of the report, which also represents a fresh 52-week high. The stock has outperformed its sector by 0.66% and the broader Sensex by 1.03% on the same day, with a day gain of 1.57%. Over the past seven consecutive trading sessions, the stock has delivered a cumulative return of 9.21%, reflecting sustained buying momentum.

Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong bullish trend. The rising delivery volume, which surged by 139.48% to 16.88 lakh shares on 6 February compared to the five-day average, further confirms increasing investor participation and conviction in the stock’s upward movement.

Market Positioning and Directional Bets

The sharp rise in open interest alongside increasing volumes suggests that traders and investors are actively positioning themselves for further upside in APL Apollo Tubes. The stock’s underlying value stands at ₹2,237, close to its recent highs, indicating that the derivatives market is aligning with the spot market’s bullish sentiment.

Given the stock’s mojo score of 88.0 and an upgraded mojo grade from Buy to Strong Buy as of 13 October 2025, market participants appear confident in the company’s growth prospects and sectoral tailwinds. The mid-cap company, with a market capitalisation of ₹61,531 crores, is benefiting from robust demand in the iron and steel products industry, which is witnessing steady recovery and infrastructure-driven growth.

Investors should note that the liquidity profile of APL Apollo Tubes is strong, with the stock capable of handling trade sizes up to ₹5.44 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional investors can enter or exit positions without significant price impact, further supporting the stock’s attractiveness in the derivatives market.

Sectoral Context and Comparative Performance

Within the Iron & Steel Products sector, APL Apollo Tubes has outpaced peers by delivering a 1.59% return on the day, compared to the sector’s 0.84% and the Sensex’s 0.54%. This relative outperformance is underpinned by the company’s strong fundamentals, improving operational metrics, and positive market sentiment.

The sector itself is benefiting from increased infrastructure spending, urbanisation, and government initiatives aimed at boosting domestic steel production. APL Apollo Tubes, with its diversified product portfolio and efficient manufacturing capabilities, is well positioned to capitalise on these trends.

Implications for Investors and Traders

The surge in open interest and volume in APL Apollo Tubes derivatives signals a growing consensus on the stock’s bullish outlook. Traders are likely building fresh long positions or rolling over existing ones, anticipating further price appreciation. The stock’s strong technical setup, combined with its upgraded mojo grade to Strong Buy, provides a compelling case for investors seeking exposure to the iron and steel sector’s growth story.

However, investors should remain mindful of broader market volatility and sector-specific risks such as raw material price fluctuations and regulatory changes. Continuous monitoring of open interest trends, price action, and delivery volumes will be crucial to gauge the sustainability of the current momentum.

In summary, APL Apollo Tubes Ltd is demonstrating robust market positioning with a significant increase in derivatives open interest, strong price performance, and favourable fundamental ratings. This confluence of factors makes it a noteworthy candidate for investors looking to capitalise on the iron and steel sector’s ongoing recovery and expansion.

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