Apollo Hospitals Sees Significant Open Interest Surge Amid Steady Price Gains

Open Interest and Volume Dynamics

On 23 Feb 2026, Apollo Hospitals (symbol: APOLLOHOSP) recorded an open interest (OI) of 57,962 contracts, up by 6,347 contracts from the previous 51,615, marking a robust 12.3% rise. This increase in OI is significant given the stock’s recent trading volume of 28,590 contracts, indicating that fresh positions are being established rather than existing ones being squared off.

The futures segment alone accounted for a value of approximately ₹1,15,490.71 lakhs, while the options segment’s notional value stood at an impressive ₹15,842.99 crores. The combined derivatives value reached ₹1,16,371.39 lakhs, reflecting substantial liquidity and active participation in Apollo’s derivatives market.

Underlying the derivatives activity, the stock’s spot price hovered around ₹7,663, trading within a narrow range of ₹64.5 on the day. This tight price band alongside rising OI suggests that traders are positioning for a potential breakout or sustained directional move.

Price Performance and Technical Positioning

Apollo Hospitals has outperformed its hospital sector peers by 0.29% on the day, delivering a 0.66% gain compared to the sector’s 0.37% and the Sensex’s 0.33%. The stock has recorded gains for two consecutive sessions, accumulating a 0.95% return over this period. Notably, it is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong technical uptrend.

However, investor participation in the cash segment has shown signs of moderation. Delivery volume on 20 Feb 2026 was 1.82 lakh shares, down by 37.97% compared to the five-day average delivery volume. This decline in delivery volume suggests that while derivatives activity is heating up, actual shareholding changes are more subdued, possibly indicating speculative positioning rather than long-term accumulation.

Market Positioning and Directional Bets

The surge in open interest combined with steady price gains points to increased bullish sentiment among derivatives traders. The rise in OI alongside rising prices typically indicates fresh long positions being added, reflecting confidence in further upside potential. Conversely, if OI had risen while prices declined, it might have suggested fresh short positions or hedging activity.

Given Apollo Hospitals’ status as a large-cap hospital sector leader with a market capitalisation of ₹1,10,029 crores, the derivatives market activity is closely watched by institutional and retail investors alike. The current Mojo Score of 55.0 and a Mojo Grade downgraded from Buy to Hold on 9 Jan 2026 reflect a cautious stance by analysts, balancing the stock’s strong fundamentals against valuation and sector headwinds.

Liquidity and Trading Implications

Apollo Hospitals’ liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes up to ₹5.79 crores based on 2% of the five-day average traded value. This liquidity ensures that both institutional and retail participants can execute sizeable trades without significant market impact.

The narrowing price range amid rising open interest suggests that market participants are accumulating positions in anticipation of a directional move. Traders may be positioning for a breakout above recent resistance levels, supported by the stock’s technical strength and sectoral tailwinds such as increasing healthcare demand and hospital utilisation.

However, the decline in delivery volumes signals that the rally is currently driven more by speculative interest in derivatives rather than sustained buying in the cash market. This divergence warrants caution, as a reversal in derivatives positioning could lead to increased volatility.

Analyst Ratings and Market Sentiment

MarketsMOJO currently assigns Apollo Hospitals a Mojo Grade of Hold with a score of 55.0, reflecting a tempered outlook. This represents a downgrade from a Buy rating issued on 9 Jan 2026, indicating that while the stock remains fundamentally sound, valuation concerns and sector uncertainties have moderated enthusiasm.

The hospital sector, while defensive in nature, faces challenges such as regulatory scrutiny and pricing pressures. Investors should weigh these factors against Apollo’s leadership position and growth prospects when interpreting the recent surge in derivatives activity.

Outlook and Investor Takeaways

In summary, the recent surge in open interest for Apollo Hospitals’ derivatives contracts signals a growing conviction among traders about the stock’s near-term prospects. The combination of rising OI, steady price appreciation, and strong technical positioning suggests that market participants are increasingly bullish, expecting further gains.

Nonetheless, the decline in delivery volumes and the Hold rating from MarketsMOJO counsel a measured approach. Investors should monitor whether the derivatives activity translates into sustained cash market buying or if it remains speculative in nature. Key support and resistance levels, alongside sector developments, will be critical in shaping the stock’s trajectory.

Given Apollo Hospitals’ large-cap status and liquidity, it remains a focal point for healthcare sector investors. The evolving derivatives landscape offers valuable insights into market sentiment and potential directional bets, making it essential for investors to stay informed and agile.

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