Open Interest and Volume Dynamics
On 23 Feb 2026, BPCL's open interest in futures and options contracts rose sharply to 41,193 from the previous 36,966, marking an increase of 4,227 contracts or 11.43%. This expansion in OI is accompanied by a substantial volume of 36,828 contracts traded, indicating strong participation from market players. The futures value stood at ₹77,303.16 lakhs, while the options segment exhibited a massive notional value of approximately ₹19,631.3 crores, underscoring the scale of derivative activity surrounding BPCL.
Such a rise in open interest, especially when paired with increasing volume, typically signals fresh capital entering the market rather than existing positions being squared off. This often points to a directional bias, with investors and traders taking new stances based on evolving fundamentals or technical triggers.
Price Performance and Technical Context
BPCL outperformed its sector peers on the day, delivering a 1.74% gain compared to the oil sector's modest 0.08% rise and the broader Sensex's 0.33% advance. The stock touched an intraday high of ₹376.7, a 2.84% increase from its previous close, signalling renewed buying interest after two consecutive days of decline. Notably, BPCL's price remains above its 50-day, 100-day, and 200-day moving averages, indicating a sustained medium- to long-term uptrend, although it currently trades slightly below its 5-day and 20-day averages, suggesting some short-term consolidation.
Investor participation has also surged, with delivery volumes on 20 Feb reaching 41.88 lakh shares, a remarkable 176.25% increase over the five-day average. This heightened delivery volume reflects genuine accumulation rather than speculative trading, reinforcing the bullish undertone.
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Market Positioning and Directional Bets
The surge in open interest alongside rising volumes and price appreciation suggests that market participants are increasingly bullish on BPCL. The derivatives market data indicates fresh long positions being established, with traders likely anticipating further upside driven by favourable sectoral dynamics and company fundamentals.
BPCL's strong dividend yield of 6.16% at the current price adds to its appeal, providing income-oriented investors with an attractive proposition amid volatile markets. The stock's liquidity profile is robust, with the ability to handle trade sizes of up to ₹2.99 crores based on 2% of the five-day average traded value, ensuring ease of entry and exit for institutional and retail investors alike.
From a technical standpoint, the stock's position above key moving averages supports the thesis of a sustained uptrend. The recent price rebound after a brief correction phase may attract momentum traders and short-term speculators, further amplifying buying interest in the near term.
Fundamental and Market Context
Bharat Petroleum Corporation Ltd, a large-cap oil sector stalwart with a market capitalisation of ₹1,60,872 crores, continues to benefit from stable crude oil prices and improving refining margins. The company’s operational efficiencies and strategic initiatives to expand its retail footprint underpin its strong mojo score of 80.0, recently upgraded from a 'Buy' to a 'Strong Buy' rating on 8 Jan 2026 by MarketsMOJO analysts.
This upgrade reflects improved financial metrics, quality of earnings, and positive outlook on sectoral tailwinds. The market cap grade of 1 further confirms BPCL’s status as a top-tier large-cap stock, making it a preferred choice for long-term investors seeking exposure to the oil sector.
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Implications for Investors
The recent spike in open interest and volume in BPCL derivatives signals a growing conviction among traders and investors about the stock’s near-term prospects. This is supported by strong fundamentals, attractive dividend yield, and technical indicators pointing to a potential continuation of the upward trend.
Investors should monitor the evolving open interest patterns closely, as sustained increases often precede significant price moves. The combination of rising delivery volumes and price strength suggests genuine accumulation, which could translate into further gains if sectoral conditions remain favourable.
However, given the stock’s current position slightly below short-term moving averages, some caution is warranted for those seeking to enter at elevated levels. A pullback towards support zones near the 50-day moving average could offer more attractive entry points for long-term investors.
Overall, BPCL’s upgraded mojo grade to 'Strong Buy' and its large-cap stature make it a compelling candidate for portfolios seeking exposure to the oil sector’s recovery and dividend income.
Conclusion
Bharat Petroleum Corporation Ltd’s derivatives market activity reveals a clear shift towards bullish positioning, with an 11.4% rise in open interest and strong volume confirming fresh buying interest. Supported by solid fundamentals, attractive dividend yield, and positive technical signals, BPCL is well poised for further gains in the near term. Investors should consider this large-cap oil stock as a strategic addition, balancing growth potential with income generation in a volatile energy market environment.
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