Apollo Hospitals Sees Notable Surge in Derivatives Open Interest Amid Steady Price Gains

Open Interest and Volume Dynamics

On 23 Feb 2026, Apollo Hospitals (symbol: APOLLOHOSP) recorded an open interest (OI) of 56,859 contracts, up by 5,244 contracts from the previous 51,615, marking a robust 10.16% increase. This rise in OI, coupled with a daily volume of 24,004 contracts, indicates a growing interest in the stock’s derivatives, reflecting increased speculative and hedging activities.

The futures segment alone accounted for a value of approximately ₹92,273.55 lakhs, while options contributed an overwhelming ₹13,776.13 crores, culminating in a total derivatives value of ₹93,047.43 lakhs. Such substantial figures underscore the stock’s liquidity and attractiveness among institutional and retail traders alike.

Price Performance and Technical Positioning

Despite the surge in derivatives activity, Apollo Hospitals’ underlying share price has shown measured gains, trading at ₹7,651 with a day change of +0.68%. The stock has been on a two-day consecutive gain streak, delivering a cumulative return of 0.77% during this period. Notably, it has traded within a narrow range of ₹64.5, suggesting consolidation amid rising open interest.

Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bullish trend. This technical strength, combined with increased derivatives activity, points to a positive market sentiment, albeit with cautious investor participation.

However, delivery volumes tell a different story. On 20 Feb, delivery volume stood at 1.82 lakh shares but declined sharply by 37.97% compared to the five-day average delivery volume. This drop suggests a falling investor participation in the cash segment, possibly indicating that traders are increasingly favouring derivatives for exposure rather than outright stock ownership.

Market Positioning and Directional Bets

The surge in open interest, particularly in options, often signals that market participants are positioning for a significant move in the underlying stock. Given Apollo Hospitals’ steady price gains and technical strength, the increased OI could reflect directional bets favouring a continuation of the uptrend.

Options data reveals a substantial notional value in the call and put segments, with the overall options value exceeding ₹13,776 crores. This suggests that traders are actively deploying strategies such as call buying or put writing to capitalise on anticipated price movements. The futures value of ₹92,273.55 lakhs further confirms strong participation in directional contracts.

However, the relatively narrow price range and falling delivery volumes imply some caution among long-term investors. The market may be witnessing a shift towards short-term trading strategies, with participants leveraging derivatives to hedge or speculate rather than committing to outright stock ownership.

From a broader perspective, Apollo Hospitals operates within the hospital sector, which has shown resilience and moderate growth. The stock’s mojo score currently stands at 55.0 with a mojo grade of Hold, downgraded from Buy as of 09 Jan 2026. This reflects a tempered outlook amid evolving market conditions, suggesting investors should weigh the recent derivatives activity alongside fundamental factors.

Liquidity and Trading Considerations

Apollo Hospitals boasts a large market capitalisation of ₹1,10,029 crore, categorising it firmly as a large-cap stock. Its liquidity profile supports sizeable trades, with the stock’s traded value comfortably accommodating trade sizes up to ₹5.79 crore based on 2% of the five-day average traded value. This liquidity is crucial for derivatives traders seeking to enter or exit positions without significant price impact.

The stock’s one-day return of 0.57% outperformed the hospital sector’s 0.29% and the Sensex’s 0.40%, indicating relative strength. This outperformance, combined with the derivatives market activity, may attract further interest from traders looking to capitalise on momentum.

Implications for Investors

Investors analysing Apollo Hospitals should consider the recent surge in derivatives open interest as a signal of increased market attention and potential volatility ahead. The combination of steady price gains, strong technical positioning, and rising derivatives activity suggests that traders are positioning for a possible continuation of the upward trend.

However, the decline in delivery volumes and the Hold mojo grade indicate that long-term conviction may be waning slightly, urging caution. Investors may want to monitor upcoming quarterly results, sectoral developments, and broader market cues before committing fresh capital.

For those engaged in derivatives trading, the current environment offers opportunities to deploy strategies that benefit from directional moves or volatility changes. The high notional values in options and futures underline the stock’s suitability for active trading, provided risk management is diligently applied.

In summary, Apollo Hospitals Enterprise Ltd. remains a key large-cap player in the hospital sector with a complex interplay of steady fundamentals and dynamic market positioning. The recent open interest surge in derivatives is a noteworthy development that could presage meaningful price action in the near term.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →