Open Interest and Volume Dynamics
The latest data reveals that Aurobindo Pharma's open interest (OI) in derivatives rose from 65,280 contracts to 74,214, an increase of 8,934 contracts or 13.69% on 18 Feb 2026. This surge in OI was accompanied by a volume of 84,831 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹79,720.6 lakhs, while the options segment's notional value stood at an extraordinary ₹46,459.4 crores, underscoring the significant interest in derivative instruments linked to the stock.
The total traded value in derivatives was ₹86,224.7 lakhs, with the underlying stock price at ₹1,143. This level of open interest growth, combined with high volume, often points to fresh capital entering the market or existing participants increasing their exposure, which can precede notable price movements.
Price Performance and Market Context
On the same day, Aurobindo Pharma's stock price declined by 3.34%, closing near its intraday low of ₹1,129.2, down 4.85% from the previous close. This underperformance was more pronounced than the Pharmaceuticals & Biotechnology sector, which fell by just 0.12%, and the Sensex, which declined 0.23%. The weighted average price of traded shares skewed towards the lower end of the day's range, suggesting selling pressure dominated the session.
Technically, the stock remains above its 200-day moving average, a long-term bullish indicator, but trades below its 5-day, 20-day, 50-day, and 100-day moving averages. This mixed technical picture indicates short- to medium-term weakness despite a generally positive long-term trend.
Investor participation has been rising, with delivery volumes on 17 Feb reaching 15.49 lakh shares, a 5.66% increase over the five-day average. This suggests that despite recent price weakness, there is still considerable interest in holding the stock, possibly reflecting divergent views on its near-term prospects.
Market Positioning and Directional Bets
The sharp increase in open interest alongside a price decline often signals that new short positions are being established or that existing longs are being hedged. Given the substantial rise in derivatives activity, market participants appear to be positioning for increased volatility or a potential directional shift.
Options data, with an exceptionally high notional value, indicates that traders are actively using calls and puts to express views on the stock’s future direction. The elevated open interest could reflect a build-up of both bullish and bearish bets, with some participants possibly anticipating a rebound after the recent pullback, while others may be preparing for further downside.
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Mojo Score and Analyst Ratings
Aurobindo Pharma currently holds a Mojo Score of 58.0, categorised as a 'Hold' rating, a downgrade from its previous 'Buy' status as of 1 Dec 2025. This reflects a tempered outlook amid recent volatility and mixed technical signals. The company's market capitalisation stands at ₹68,709 crores, placing it firmly in the mid-cap segment with a Market Cap Grade of 2, indicating moderate size and liquidity.
The downgrade in rating suggests that analysts are cautious about the stock’s near-term trajectory, possibly due to sector headwinds or company-specific challenges. However, the long-term fundamentals remain intact, supported by the pharmaceutical sector’s steady demand and Aurobindo’s diversified product portfolio.
Liquidity and Trading Considerations
Liquidity remains adequate for sizeable trades, with the stock’s traded value representing approximately 2% of its five-day average, enabling transactions up to ₹5.51 crores without significant market impact. This level of liquidity is favourable for institutional investors and active traders seeking to enter or exit positions efficiently.
Given the rising open interest and volume, traders should monitor the stock closely for potential breakout or breakdown scenarios. The current technical setup, combined with derivative market activity, suggests that volatility may increase in the coming sessions.
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Outlook and Investor Takeaways
Investors should approach Aurobindo Pharma with a balanced perspective. The surge in open interest and volume signals increased market attention and potential for significant price moves. However, the recent price weakness and downgrade in Mojo Grade to 'Hold' counsel caution.
For those with a medium- to long-term horizon, the stock’s position above the 200-day moving average and rising delivery volumes suggest underlying strength. Conversely, short-term traders may find opportunities in the heightened volatility, particularly by monitoring derivative positioning and price action around key moving averages.
Overall, Aurobindo Pharma’s derivatives market activity reflects a dynamic environment where both bulls and bears are actively engaged. Market participants should stay alert to evolving trends and be prepared for potential directional shifts as new information emerges.
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