Open Interest and Volume Dynamics
The latest data reveals that Bajaj Auto’s open interest (OI) in derivatives rose sharply by 4,843 contracts, a 10.03% increase from the previous figure of 48,287 to 53,130. This uptick in OI was accompanied by a substantial volume of 80,252 contracts, indicating heightened trading activity and fresh positions being established rather than merely unwinding existing ones.
Such a rise in OI alongside strong volume typically suggests that market participants are positioning for a sustained move, rather than a short-term spike. The futures value stood at ₹43,654.21 lakhs, while the options segment exhibited an enormous notional value of approximately ₹58,025.37 crores, underscoring the significant liquidity and interest in Bajaj Auto’s derivatives.
Price Action and Moving Averages Support
Bajaj Auto’s price action complements the derivatives activity, with the stock touching an intraday high of ₹10,160, marking a 3.37% gain on the day. This performance aligns closely with the Automobile Two & Three Wheelers sector, which gained 2.19%, and notably outperformed the Sensex’s modest 0.22% rise.
The stock is trading comfortably above its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend across multiple timeframes. This technical backdrop supports the notion that the recent open interest surge is driven by genuine optimism rather than speculative noise.
Market Positioning and Directional Bets
The increase in open interest, coupled with rising prices and volume, suggests that traders are predominantly taking long positions, anticipating further upside. The underlying value of Bajaj Auto stands at ₹10,057, close to the recent highs, reinforcing the bullish sentiment.
Interestingly, despite the strong derivatives activity, delivery volumes have declined by 10.24% compared to the 5-day average, with 1.1 lakh shares delivered on 24 Feb 2026. This divergence indicates that while short-term traders and institutional participants are actively building positions in the derivatives market, retail investor participation in the cash segment has moderated.
This pattern often reflects a strategic build-up by sophisticated investors who may be leveraging derivatives for leveraged exposure or hedging, while the broader retail base remains cautious or consolidating.
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Mojo Score Upgrade and Market Capitalisation
Bajaj Auto’s recent upgrade in Mojo Grade from Hold to Buy on 16 Feb 2026, with a Mojo Score of 74.0, reflects improved fundamentals and positive market outlook. The company holds a Market Cap Grade of 1, categorising it as a large-cap stock with a market capitalisation of ₹2,81,035.08 crores, underscoring its dominant position in the automobile sector.
The upgrade signals enhanced confidence from analysts, driven by steady earnings growth, robust cash flows, and favourable industry dynamics. This rating change likely contributed to the increased open interest as institutional investors recalibrated their positions in anticipation of further gains.
Sectoral and Broader Market Context
The automobile sector, particularly the Two & Three Wheelers segment, has shown resilience with a 1-day return of 2.24%, closely mirroring Bajaj Auto’s 2.30% gain. This sectoral strength is supported by improving consumer demand, easing supply chain constraints, and favourable government policies promoting electric and fuel-efficient vehicles.
In contrast, the broader Sensex’s modest 0.22% rise highlights Bajaj Auto’s relative outperformance, suggesting that investors are selectively favouring quality large caps with strong growth prospects amid mixed market conditions.
Liquidity and Trading Viability
Liquidity remains robust for Bajaj Auto, with the stock’s traded value supporting a trade size of approximately ₹5.45 crores based on 2% of the 5-day average traded value. This ample liquidity ensures that both institutional and retail investors can enter or exit positions without significant price impact, further encouraging active participation in both cash and derivatives markets.
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Implications for Investors
The surge in open interest and volume in Bajaj Auto’s derivatives, combined with its technical strength and sectoral tailwinds, suggests a positive near-term outlook. Investors should note the stock’s strong momentum and consider the upgraded Mojo Grade as a signal of improving fundamentals.
However, the decline in delivery volumes indicates some caution among retail investors, which could imply potential volatility or profit-booking in the short term. Market participants should monitor open interest trends closely, as sustained increases alongside price appreciation typically confirm bullish positioning, while any sharp reversals in OI could signal profit-taking or a change in sentiment.
Given Bajaj Auto’s large-cap status, liquidity, and favourable industry positioning, it remains an attractive option for investors seeking exposure to the automobile sector’s growth story, especially in the two and three-wheeler segments.
Conclusion
Bajaj Auto Ltd.’s recent open interest surge in derivatives is a clear indicator of heightened market interest and bullish positioning. Supported by a fresh 52-week high, strong volume, and an upgraded Mojo Grade, the stock is poised for potential further gains. While retail participation has moderated, institutional and sophisticated investors appear confident in the company’s prospects, making Bajaj Auto a key stock to watch in the automobile sector.
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