Bajaj Auto Ltd Sees Significant Open Interest Surge Amid Mixed Market Signals

Open Interest and Volume Dynamics

The latest data reveals that Bajaj Auto’s open interest (OI) in derivatives rose from 82,468 contracts to 90,771, an increase of 8,303 contracts or 10.07% on 19 Feb 2026. This surge in OI was accompanied by a robust volume of 1,27,054 contracts, indicating strong participation in the futures and options market. The futures value stood at ₹2,27,326.85 lakhs, while the options segment exhibited an enormous notional value of ₹72,66,62,350.72 lakhs, underscoring the stock’s liquidity and attractiveness for derivative traders.

Such a rise in open interest, especially when paired with increased volume, often points to fresh positions being initiated rather than existing ones being squared off. This suggests that market participants are actively repositioning themselves, possibly in anticipation of upcoming corporate developments or macroeconomic factors impacting the automobile sector.

Price Action and Technical Context

On the price front, Bajaj Auto hit a new 52-week high of ₹10,059.5 earlier in the day, reflecting underlying strength. However, the stock closed with a 1.99% loss, underperforming its sector by 0.32% and the Sensex by 0.87%. This reversal after two consecutive days of gains indicates profit booking or short-term caution among investors.

Technically, the stock remains in a bullish zone, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This alignment of moving averages typically signals a sustained uptrend, which may attract longer-term investors despite short-term volatility.

Investor Participation and Liquidity

Investor interest is further evidenced by a sharp rise in delivery volumes, which surged by 59.23% to 1.73 lakh shares on 18 Feb 2026 compared to the five-day average. This increase in delivery volume suggests genuine accumulation rather than speculative trading, reinforcing confidence in the stock’s fundamentals.

Liquidity remains ample, with the stock’s traded value supporting a trade size of approximately ₹4.4 crore based on 2% of the five-day average traded value. Such liquidity is crucial for institutional investors and large traders to enter or exit positions without significant price impact.

Market Positioning and Directional Bets

The increase in open interest alongside a price decline suggests that traders may be taking mixed directional stances. Some participants could be initiating short positions, anticipating a near-term correction after the recent rally, while others might be building long positions expecting a rebound supported by strong fundamentals and sectoral tailwinds.

Given Bajaj Auto’s mojo score of 74.0 and an upgraded mojo grade from Hold to Buy as of 16 Feb 2026, the stock is viewed favourably by analysts. The market cap grade of 1 further highlights its status as a large-cap stock with stable institutional interest. These factors may encourage long-term investors to accumulate on dips, while short-term traders remain cautious amid volatility.

Moreover, the underlying value of ₹9,827 and the substantial derivatives activity indicate that Bajaj Auto remains a key focus for options traders, who may be employing strategies such as protective puts or covered calls to hedge or enhance returns.

Sector and Benchmark Comparison

In comparison to the automobile sector’s 1-day return of -1.41% and the Sensex’s -1.12%, Bajaj Auto’s 1-day return of -2.09% reflects a slightly weaker performance. However, the stock’s ability to sustain above critical moving averages and the surge in delivery volumes suggest resilience relative to peers.

Investors should monitor upcoming sectoral developments, including raw material cost trends, regulatory changes, and demand outlook, which could influence Bajaj Auto’s trajectory in the near term.

Outlook and Investor Takeaways

While the recent price dip may cause some short-term concern, the overall technical and fundamental backdrop for Bajaj Auto remains constructive. The surge in open interest and volume points to active repositioning by market participants, reflecting a nuanced view of the stock’s prospects.

Investors should weigh the stock’s strong mojo score and upgraded rating against the current volatility and sectoral headwinds. Those with a medium to long-term horizon may find the recent correction an opportunity to build positions, while traders should remain vigilant for confirmation of trend direction through price and volume action.

In summary, Bajaj Auto Ltd. continues to command significant attention in the derivatives market, with open interest and volume trends signalling evolving market sentiment. The stock’s large-cap status, liquidity, and technical strength provide a solid foundation amid a complex trading environment.

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