Bharti Airtel Ltd Sees Sharp Open Interest Surge Amid Mixed Market Signals

Open Interest and Volume Dynamics

On 20 Feb 2026, Bharti Airtel's open interest (OI) in derivatives rose sharply to 1,84,077 contracts from 1,56,084 the previous day, marking an increase of 27,993 contracts or 17.93%. This surge in OI was accompanied by a futures volume of 1,07,979 contracts, reflecting active participation in the derivatives market. The combined futures and options value stood at approximately ₹41,848 crores, with futures contributing ₹414.8 crores and options an overwhelming ₹61,284.75 crores, underscoring the significant notional exposure in the stock.

The underlying share price closed at ₹1,979, down marginally by 0.34% on the day, underperforming the Sensex which gained 0.62%. The telecom sector index declined by 0.52%, placing Bharti Airtel's performance broadly in line with sector trends but lagging the broader market.

Market Positioning and Investor Sentiment

The increase in open interest amid a slight price decline and falling delivery volumes suggests a complex market stance. Delivery volumes on 19 Feb fell by 35.88% to 17.97 lakh shares compared to the five-day average, indicating reduced investor participation in the cash segment. This divergence between derivatives activity and cash market participation often points to speculative positioning or hedging strategies rather than outright accumulation or distribution by long-term investors.

Bharti Airtel's share price remains above its 200-day moving average, a long-term bullish indicator, but below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short to medium-term weakness. This technical setup may be encouraging traders to take cautious or hedged positions, reflected in the rising open interest.

Directional Bets and Derivatives Strategy

The substantial rise in open interest, particularly in options, indicates that market participants are actively positioning for potential volatility or directional moves. The large notional value in options suggests that traders may be employing strategies such as spreads, straddles, or protective puts to hedge existing exposures or speculate on near-term price movements.

Given the stock's recent two-day consecutive decline totalling a 2.17% loss, some investors might be anticipating a rebound or further correction, reflected in the mixed signals from moving averages and volume patterns. The futures market activity, with a value of ₹414.8 crores, supports the view that institutional players are maintaining significant exposure, possibly adjusting positions in response to sectoral developments or broader macroeconomic factors affecting telecom services.

Fundamental and Market Context

Bharti Airtel Ltd, a large-cap telecom services company with a market capitalisation of ₹11,29,358.98 crores, holds a Mojo Score of 68.0 and a current Mojo Grade of Hold, downgraded from Buy as of 29 Dec 2025. This rating adjustment reflects a cautious stance amid evolving market conditions and competitive pressures within the telecom sector.

The stock's liquidity remains adequate, with a trading capacity of approximately ₹16.43 crores based on 2% of the five-day average traded value, ensuring that institutional and retail investors can transact sizeable volumes without significant price impact.

Implications for Investors

The surge in open interest combined with subdued price action and falling delivery volumes suggests that investors should exercise caution. The derivatives market activity points to increased speculative interest or hedging rather than clear directional conviction. Investors may consider monitoring key technical levels, particularly the 200-day moving average which remains a critical support zone.

Given the Hold rating and recent downgrade, long-term investors might await clearer signals before increasing exposure, while traders could explore short-term strategies capitalising on volatility. The telecom sector's sensitivity to regulatory changes, competitive pricing pressures, and evolving technology trends also warrant close attention.

Conclusion

Bharti Airtel Ltd's recent open interest surge in derivatives highlights a phase of active repositioning by market participants amid mixed technical and fundamental signals. While the stock remains a heavyweight in the telecom services sector, the current market environment calls for prudent analysis and strategic positioning. Investors should balance the potential for volatility-driven opportunities against the backdrop of a Hold rating and sectoral headwinds.

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