Open Interest and Volume Dynamics
On 17 Feb 2026, Aurobindo Pharma’s open interest in derivatives rose sharply by 10,922 contracts, a 16.85% increase from the previous day’s 64,808 to 75,730 contracts. This notable expansion in OI accompanied a futures volume of 39,150 contracts, reflecting active trading interest. The combined futures and options value stood at approximately ₹16,591 crores, with futures alone accounting for ₹942 crores, underscoring the substantial liquidity and market participation in the stock’s derivatives.
The underlying stock price closed at ₹1,203, having touched an intraday high of ₹1,212.8, marking a 2.38% gain on the day. This price action outpaced the Pharmaceuticals & Biotechnology sector’s 0.26% gain and the Sensex’s marginal decline of 0.06%, highlighting Aurobindo Pharma’s relative strength.
Price Momentum and Moving Averages
Aurobindo Pharma has been on a positive trajectory, registering gains for two consecutive sessions with a cumulative return of 5.21%. The stock is trading comfortably above its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained uptrend. This technical strength aligns with the surge in derivatives activity, suggesting that market participants are positioning for further upside.
However, delivery volumes tell a more nuanced story. On 16 Feb, the delivery volume was 7.38 lakh shares, which represents a steep 47.24% decline compared to the five-day average delivery volume. This drop indicates that while short-term trading interest is high, longer-term investor commitment may be waning, possibly reflecting profit-booking or cautious stance amid recent gains.
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Market Positioning and Directional Bets
The sharp rise in open interest alongside rising prices and volume suggests that traders are increasingly bullish on Aurobindo Pharma. The increase in OI indicates fresh positions being initiated rather than existing ones being squared off, which often points to directional conviction. Given the stock’s outperformance relative to its sector and the broader market, it is plausible that participants are betting on continued momentum driven by favourable fundamentals or sector tailwinds.
Nevertheless, the decline in delivery volumes tempers the bullish narrative, implying that institutional or long-term investors might be exercising caution. This divergence between derivatives activity and delivery participation could reflect a market environment where short-term traders and speculators dominate price action, while longer-term holders await clearer signals.
Mojo Score and Analyst Ratings
Aurobindo Pharma currently holds a Mojo Score of 68.0, categorised as a Hold rating. This represents a downgrade from a previous Buy rating as of 1 Dec 2025, reflecting a more cautious stance amid recent volatility and mixed signals from market data. The company’s market capitalisation stands at ₹69,475 crores, placing it firmly in the mid-cap segment within the Pharmaceuticals & Biotechnology sector.
The stock’s market cap grade is 2, indicating moderate size and liquidity, which is consistent with the observed trading volumes and open interest figures. Investors should weigh the positive price momentum and derivatives interest against the tempered analyst outlook and falling delivery volumes when considering exposure.
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Implications for Investors
The surge in derivatives open interest combined with positive price action suggests that Aurobindo Pharma is attracting speculative interest and may be poised for further gains in the near term. Traders looking to capitalise on momentum could consider derivative strategies such as long futures or call options to benefit from potential upside.
However, the decline in delivery volumes and the Hold rating from analysts counsel prudence. Long-term investors should monitor upcoming corporate developments, sector trends, and quarterly results to validate the sustainability of the current rally. The pharmaceutical sector remains sensitive to regulatory changes, pricing pressures, and global supply chain dynamics, all of which could impact the stock’s trajectory.
Liquidity remains adequate, with the stock’s average traded value supporting trade sizes of up to ₹8.05 crores without significant market impact, facilitating both institutional and retail participation.
Conclusion
Aurobindo Pharma’s recent spike in open interest and volume in the derivatives market reflects a growing bullish sentiment among traders, supported by strong price momentum and sector outperformance. Yet, the contrasting decline in delivery volumes and a cautious analyst outlook suggest a mixed picture for investors. While short-term directional bets appear optimistic, a balanced approach considering both technical signals and fundamental factors is advisable.
Investors should remain vigilant to evolving market conditions and consider the stock’s mid-cap status and sector-specific risks before making significant allocations.
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