Bharti Airtel Sees Sharp Open Interest Surge Amid Bearish Price Action

Open Interest and Volume Dynamics

On 24 Feb 2026, Bharti Airtel’s open interest (OI) in futures and options contracts rose sharply to 1,75,551 contracts from 1,55,606 the previous day, marking an increase of 19,945 contracts or 12.82%. This surge in OI is significant given the stock’s underlying price movement, which saw it touch an intraday low of ₹1,921.8, down 3.78% on the day. The weighted average price indicated that most volume traded closer to the day’s low, reflecting selling pressure.

Volume also remained robust at 1,28,309 contracts, supporting the OI increase and indicating fresh positions being established rather than existing ones being squared off. The futures value stood at ₹2,76,075 lakhs, while the options segment exhibited a substantial notional value of approximately ₹93,177 crores, underscoring the derivatives market’s depth and liquidity for Bharti Airtel.

Price and Moving Average Trends

Bharti Airtel’s share price performance on the day was in line with the broader telecom sector, which declined by 3.03%, and underperformed the Sensex’s 1.35% fall. The stock’s 1-day return was -3.00%, slightly worse than the sector average of -2.83%. Notably, the stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a bearish technical setup and potential continuation of downward momentum in the near term.

Investor participation remains elevated, with delivery volumes rising by 8.95% to 24.01 lakh shares on 23 Feb, compared to the 5-day average. This suggests that despite the price weakness, there is considerable interest in holding or accumulating the stock at lower levels, possibly anticipating a medium-term recovery or volatility-driven trading opportunities.

Market Positioning and Directional Bets

The surge in open interest alongside rising volumes typically indicates that new positions are being created rather than liquidated. In Bharti Airtel’s case, this could reflect a mix of speculative and hedging activity. The increase in OI amid a price decline suggests that some market participants may be taking short positions, betting on further downside, while others could be establishing long positions as a hedge or for a potential rebound.

Given the stock’s large market capitalisation of ₹10,98,881 crores and its classification as a large-cap telecom services provider, institutional investors and proprietary trading desks are likely driving much of this activity. The stock’s Mojo Score has recently been downgraded from Buy to Hold (Mojo Grade 68.0 as of 29 Dec 2025), reflecting a more cautious stance amid the current technical and fundamental backdrop.

Sectoral and Broader Market Context

The telecom services sector has been under pressure recently, with Bharti Airtel’s peers also experiencing declines. The sector’s 1-day return of -3.03% outpaced the Sensex’s broader fall, indicating sector-specific headwinds such as regulatory concerns, competitive pricing pressures, and capital expenditure demands. Bharti Airtel’s liquidity profile remains strong, with the stock capable of handling trade sizes up to ₹17 crores based on 2% of the 5-day average traded value, making it a preferred choice for large institutional trades.

Despite the current weakness, the company’s fundamentals remain robust, supported by its extensive subscriber base, diversified revenue streams, and ongoing investments in 5G infrastructure. However, the recent downgrade in Mojo Grade from Buy to Hold signals that analysts are awaiting clearer signs of a sustained recovery before upgrading their outlook.

Implications for Investors

For investors, the sharp rise in open interest combined with falling prices suggests a period of heightened volatility and repositioning. Traders may look to capitalise on short-term directional moves, while long-term investors should monitor the evolving technical signals and sector dynamics closely. The current technical weakness below all major moving averages advises caution, but the elevated delivery volumes hint at underlying investor confidence at lower price points.

Given the mixed signals, a balanced approach is prudent. Investors might consider waiting for confirmation of a trend reversal or sustained volume support before increasing exposure. Meanwhile, the derivatives market activity offers opportunities for hedging or tactical trades based on volatility expectations.

Outlook and Conclusion

Bharti Airtel’s recent surge in open interest amid a declining price environment highlights a complex interplay of market forces. The derivatives market activity points to increased speculation and hedging, reflecting uncertainty about the stock’s near-term direction. While the technical indicators currently lean bearish, the company’s strong fundamentals and large-cap status provide a cushion against extreme downside risks.

Investors should remain vigilant, analysing volume and price action closely alongside sectoral developments. The downgrade to a Hold rating by MarketsMOJO suggests a wait-and-watch approach until clearer signs of recovery emerge. Meanwhile, the stock’s liquidity and active derivatives market offer ample opportunities for tactical positioning, whether for hedging or directional bets.

In summary, Bharti Airtel is navigating a challenging phase marked by increased market participation and repositioning. The coming weeks will be critical in determining whether the stock can stabilise and resume its upward trajectory or face further pressure amid sectoral headwinds.

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