Bharti Airtel Sees Sharp Open Interest Surge Amid Declining Prices and Sector Weakness

Open Interest and Volume Dynamics

On 24 Feb 2026, Bharti Airtel's open interest (OI) rose sharply from 1,55,606 contracts to 1,75,327 contracts, an increase of 19,721 contracts or 12.67%. This expansion in OI was accompanied by a futures volume of 1,19,162 contracts, indicating robust trading activity. The futures value stood at approximately ₹2,51,320 lakhs, while the options segment exhibited an enormous notional value of ₹87,069.55 crores, underscoring the significant derivatives interest in the stock.

The total traded value in derivatives reached ₹2,60,785 lakhs, reflecting strong liquidity and active participation from institutional and retail investors alike. The underlying stock price closed at ₹1,937, having touched an intraday low of ₹1,921.8, down 3.78% from the previous close. Notably, the weighted average price of traded contracts skewed closer to the day's low, signalling selling pressure during the session.

Price and Moving Average Trends

Bharti Airtel's share price performance on the day was in line with the broader Telecom - Services sector, which declined by 2.93%. The stock underperformed the Sensex, which fell by 1.14%, reflecting sector-specific headwinds. Technical indicators reveal that Bharti Airtel is trading below its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a bearish trend across multiple timeframes. This technical weakness may be influencing the cautious stance of investors despite the surge in derivatives activity.

Investor Participation and Liquidity

Investor participation has risen notably, with delivery volumes on 23 Feb reaching 24.01 lakh shares, an 8.95% increase over the 5-day average delivery volume. This suggests that despite short-term price weakness, there remains substantial interest in holding the stock. Liquidity metrics confirm that the stock can comfortably handle trade sizes of up to ₹17 crore based on 2% of the 5-day average traded value, making it an attractive option for large institutional trades and active traders.

Market Positioning and Directional Bets

The surge in open interest alongside a declining stock price often points to increased short positioning or hedging activity. However, the sizeable increase in both futures and options notional values suggests a complex interplay of strategies. Some market participants may be building protective puts or engaging in spread trades to capitalise on volatility, while others could be speculating on a potential rebound or further downside.

Given Bharti Airtel's current Mojo Score of 68.0 and a Mojo Grade downgraded from Buy to Hold as of 29 Dec 2025, the market appears to be adopting a more cautious stance. The downgrade reflects concerns over near-term headwinds in the telecom sector, including pricing pressures and regulatory uncertainties, which may be tempering bullish sentiment despite the company's large-cap status and ₹10,98,881 crore market capitalisation.

Sectoral and Broader Market Context

The Telecom - Services sector has been under pressure recently, with the sector index falling 2.93% on the day. Bharti Airtel's performance closely mirrors this trend, indicating that sector-specific factors are influencing investor behaviour. The broader market, represented by the Sensex, declined by 1.14%, suggesting that the telecom sector is facing disproportionate challenges relative to the overall market.

Investors should note that Bharti Airtel's trading below all major moving averages signals a need for caution. The stock's technical weakness, combined with increased derivatives activity, may indicate that market participants are positioning for continued volatility or a potential correction.

Implications for Investors

For investors, the current scenario presents a mixed picture. The increased open interest and volume indicate active market engagement and potential opportunities for trading strategies that exploit volatility. However, the technical weakness and sectoral headwinds suggest that a cautious approach is warranted.

Bharti Airtel's downgrade to a Hold rating by MarketsMOJO reflects a tempered outlook, recommending investors to monitor developments closely before committing fresh capital. Those with existing positions may consider hedging strategies to protect against further downside, while traders might look for short-term volatility plays given the heightened derivatives activity.

Long-term investors should weigh the company's large-cap stature and dominant market position against the current challenges in the telecom sector. The stock's liquidity and active derivatives market provide ample scope for tactical manoeuvres, but fundamental improvements will be key to reversing the recent downtrend.

Conclusion

Bharti Airtel Ltd's significant open interest surge amid a declining share price highlights a dynamic market environment with shifting investor sentiment. The interplay of increased derivatives activity, technical weakness, and sectoral pressures suggests that market participants are recalibrating their positions, balancing between hedging and speculative directional bets. Investors are advised to remain vigilant, leveraging detailed analysis and risk management strategies in navigating this evolving landscape.

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