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 rose sharply to 1,76,781 contracts from 1,55,606 the previous day, marking an increase of 21,175 contracts or 13.61%. This expansion in OI is accompanied by a substantial volume of 1,39,245 contracts traded, indicating robust participation in the derivatives market. The futures value stood at ₹3,06,954 lakhs, while options value was significantly higher at ₹1,00,408 crores, culminating in a total derivatives value of approximately ₹3,18,261 lakhs.

The underlying stock price closed at ₹1,949, having touched an intraday low of ₹1,921.8, down 3.78% on the day. Notably, the weighted average price of traded contracts was closer to the day’s low, suggesting that the bulk of trading activity occurred at lower price levels, reflecting bearish sentiment among traders.

Market Positioning and Moving Averages

Bharti Airtel is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. This technical positioning aligns with the stock’s 1-day return of -2.48%, which slightly outperforms the sector’s decline of -2.59% but underperforms the Sensex’s more modest fall of -1.16% on the same day.

Investor participation has risen, with delivery volumes on 23 Feb reaching 24.01 lakh shares, an 8.95% increase over the 5-day average delivery volume. This uptick in delivery volume amidst falling prices suggests that long-term investors may be accumulating shares at lower levels, potentially anticipating a rebound or valuing the stock’s fundamentals despite short-term weakness.

Interpreting the Open Interest Surge

The 13.6% rise in open interest amid a declining stock price can be interpreted in several ways. Typically, an increase in OI alongside falling prices suggests that new short positions are being initiated, reflecting bearish bets on the stock’s near-term performance. This is consistent with the weighted average price clustering near the day’s low, indicating aggressive selling pressure.

However, the simultaneous rise in delivery volumes hints at a more nuanced picture. While traders in the derivatives market may be positioning for further downside, long-term investors appear to be accumulating shares, possibly viewing the current dip as a buying opportunity given Bharti Airtel’s large-cap status and dominant position in the telecom services sector.

Bharti Airtel’s Mojo Score currently stands at 68.0 with a Mojo Grade of Hold, downgraded from Buy on 29 Dec 2025. The downgrade reflects recent price weakness and technical deterioration, but the stock’s fundamentals and market cap grade of 1 (indicating large-cap status) continue to provide a degree of stability.

Sector and Market Context

The telecom services sector has experienced a broad-based decline, with the sector index falling 2.59% on the day. Bharti Airtel’s performance is broadly in line with this trend, though it has marginally outperformed the sector’s fall. The Sensex’s smaller decline of 1.16% suggests that the telecom sector is underperforming the broader market, possibly due to sector-specific challenges such as regulatory pressures, competitive intensity, or capital expenditure concerns.

Liquidity remains adequate for Bharti Airtel, with the stock’s traded value supporting trade sizes up to ₹17 crore based on 2% of the 5-day average traded value. This liquidity ensures that institutional investors can enter or exit positions without significant market impact, which is crucial given the stock’s large market capitalisation of ₹10,98,881 crore.

Potential Directional Bets and Investor Implications

The derivatives market activity suggests that traders are positioning for continued volatility in Bharti Airtel’s share price. The increase in open interest, particularly in futures and options, may indicate directional bets favouring further downside or hedging strategies by institutional participants. The large options value relative to futures points to active options trading, which could include protective puts or speculative calls depending on market outlook.

For investors, the mixed signals warrant cautious monitoring. The downgrade to a Hold rating by MarketsMOJO reflects the current technical weakness and market uncertainty. However, the company’s strong market capitalisation, sector leadership, and rising delivery volumes suggest that the stock remains a core holding for long-term investors who can withstand short-term fluctuations.

Given the telecom sector’s strategic importance and Bharti Airtel’s dominant market share, any sustained price weakness could present an attractive entry point for value investors. Conversely, traders should remain vigilant for further downside risks, especially if open interest continues to rise alongside falling prices.

Conclusion

Bharti Airtel Ltd’s recent surge in open interest amid a declining stock price highlights a complex interplay of bearish trader positioning and rising investor participation. While derivatives data points to increased short-term caution, the underlying fundamentals and delivery volume trends suggest that long-term investors are selectively accumulating. The stock’s Hold rating and technical underperformance relative to moving averages underscore the need for a balanced approach, weighing both risks and opportunities in the current market environment.

Investors should closely track open interest trends, volume patterns, and sector developments to gauge the evolving sentiment around Bharti Airtel and adjust their portfolios accordingly.

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