APL Apollo Tubes Ltd Sees Sharp Open Interest Surge Signalling Strong Market Positioning

Open Interest and Volume Dynamics

On 23 Jan 2026, APL Apollo Tubes recorded an open interest (OI) of 51,092 contracts in its futures and options segment, marking an 18.06% increase from the previous day’s 43,275 contracts. This rise of 7,817 contracts is a clear indicator of fresh capital entering the market, signalling that traders are actively building positions rather than unwinding them.

Volume also surged substantially, with 1,01,708 contracts traded, underscoring robust participation. The futures segment alone accounted for a value of approximately ₹1,76,333 lakhs, while the options segment’s notional value was an astronomical ₹55,923 crores, culminating in a total derivatives value of ₹1,82,717 lakhs. This liquidity ensures that the stock remains accessible for sizeable trades without significant price impact.

Price Action and Technical Strength

APL Apollo Tubes hit a new 52-week high of ₹2,070.6 during intraday trading, representing a 4.79% rise on the day. The stock outperformed its sector by 2.48% and the broader Sensex by 2.19%, with a 1-day return of 1.42% compared to the sector’s -1.17% and Sensex’s -0.77%. Notably, the stock has gained 6.5% over the past two consecutive trading sessions, reflecting sustained buying interest.

Technically, the stock is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong uptrend. The delivery volume on 22 Jan surged to 5.3 lakh shares, a 109.11% increase over the 5-day average, indicating rising investor participation and conviction in the stock’s upward trajectory.

Market Positioning and Directional Bets

The sharp increase in open interest alongside rising prices suggests that market participants are predominantly taking bullish positions. The 18.06% jump in OI, coupled with strong volume, typically indicates fresh long positions being established rather than short covering. This is further supported by the stock’s outperformance relative to its sector and the broader market indices.

APL Apollo Tubes’ underlying value stands at ₹2,001, close to its recent highs, reinforcing the positive sentiment. The stock’s mid-cap market capitalisation of ₹55,638.26 crores places it in a sweet spot for growth-oriented investors seeking exposure to the iron and steel products sector, which is currently benefiting from robust demand and favourable macroeconomic conditions.

From a derivatives perspective, the elevated futures and options values indicate that institutional players are actively positioning for further upside. The substantial notional value in options suggests that traders are also employing hedging strategies, possibly buying calls or writing puts to capitalise on expected price appreciation while managing risk.

Mojo Score Upgrade and Analyst Sentiment

MarketsMOJO has upgraded APL Apollo Tubes’ Mojo Grade from Buy to Strong Buy as of 13 Oct 2025, reflecting improved fundamentals and technical outlook. The current Mojo Score stands at an impressive 88.0, signalling strong conviction among analysts regarding the stock’s potential. This upgrade aligns with the recent price and volume action, reinforcing the bullish narrative.

Despite a Market Cap Grade of 2, indicating a mid-cap classification, the stock’s liquidity remains robust, with a 2% average traded value supporting trade sizes up to ₹2.42 crores without significant slippage. This balance of growth potential and liquidity makes APL Apollo Tubes an attractive proposition for both retail and institutional investors.

Sectoral and Broader Market Context

The iron and steel products sector has been under pressure in recent months due to fluctuating raw material costs and global trade uncertainties. However, APL Apollo Tubes has managed to buck the trend, demonstrating resilience through operational efficiencies and strategic pricing. Its recent outperformance relative to the sector’s 1-day return of -1.17% highlights its relative strength.

Moreover, the Sensex’s modest decline of 0.77% on the same day underscores the stock’s defensive qualities and appeal as a growth vehicle within a volatile market environment. Investors appear to be rotating into quality mid-cap names with strong fundamentals and technical momentum, of which APL Apollo Tubes is a prime example.

Investor Takeaway

For investors, the surge in open interest combined with rising prices and volumes suggests a favourable risk-reward profile. The stock’s technical strength, validated by its trading above all major moving averages, supports the case for continued upside. The strong Mojo Score upgrade to Strong Buy further bolsters confidence in the company’s prospects.

However, investors should remain mindful of sector-specific risks such as input cost volatility and global demand fluctuations. Monitoring open interest trends and volume patterns in the derivatives market will be crucial to gauge ongoing market sentiment and positioning.

Overall, APL Apollo Tubes Ltd presents a compelling opportunity for investors seeking exposure to the iron and steel products sector with a well-supported bullish case underpinned by robust market participation and positive analyst sentiment.

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