Bharti Airtel Sees Sharp Open Interest Surge Amid Mixed Market Signals

Open Interest and Volume Dynamics

On 19 Feb 2026, Bharti Airtel’s open interest (OI) in futures and options contracts rose sharply to 177,168 from the previous 159,066, marking an increase of 18,102 contracts or 11.38%. This surge in OI is accompanied by a futures volume of 95,370 contracts, reflecting active participation in the derivatives market. The futures value stood at ₹3,43,583 lakhs, while the options segment exhibited a substantial notional value of ₹57,663 crores, culminating in a combined derivatives value of approximately ₹3,46,382 lakhs.

The underlying stock price closed at ₹2,002, down by 1.22% on the day, slightly underperforming the sector’s decline of 1.08% and the Sensex’s 0.85% fall. This divergence between price movement and open interest growth often indicates that market participants are either hedging existing positions or establishing new directional trades.

Market Positioning and Directional Bets

The increase in open interest alongside a decline in price suggests a complex interplay of bullish and bearish bets. Typically, rising OI with falling prices can indicate fresh short positions or protective puts being bought by investors anticipating further downside. Conversely, it may also reflect long positions being added at lower levels by contrarian investors expecting a rebound.

Bharti Airtel’s futures contracts have gained traction, with the volume of 95,370 contracts signalling robust liquidity and active trading interest. However, delivery volumes have fallen sharply by 63.3% to 13.04 lakh shares on 18 Feb 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 rather than fundamental-driven buying or selling.

Technical and Trend Analysis

From a technical standpoint, Bharti Airtel’s stock price remains above its 20-day and 200-day moving averages, which typically signals medium- to long-term strength. However, it is trading below the 5-day, 50-day, and 100-day moving averages, reflecting short- to intermediate-term weakness and potential consolidation. This mixed technical picture aligns with the observed derivatives activity, where investors appear to be hedging or positioning for volatility rather than a clear directional trend.

The stock’s liquidity profile remains healthy, with a trading capacity of approximately ₹19.19 crore based on 2% of the five-day average traded value, ensuring that large trades can be executed without significant market impact.

Mojo Score and Rating Revision

MarketsMOJO’s latest assessment assigns Bharti Airtel a Mojo Score of 68.0, reflecting a Hold rating. This represents a downgrade from the previous Buy rating issued on 29 Dec 2025. The downgrade is likely influenced by the recent price softness, falling investor participation in the cash market, and the mixed technical signals. The company retains a Market Cap Grade of 1, underscoring its status as a large-cap heavyweight with a market capitalisation exceeding ₹11.4 lakh crore.

Sector and Benchmark Comparison

Bharti Airtel’s performance today was broadly in line with the Telecom - Services sector, which declined by 1.08%. The Sensex’s more modest fall of 0.85% suggests that the broader market remains relatively resilient compared to the telecom segment. Given the sector’s competitive pressures and regulatory environment, the derivatives market activity in Bharti Airtel may be reflecting investor caution amid evolving industry dynamics.

Implications for Investors

The surge in open interest combined with subdued price action and falling delivery volumes suggests that investors are adopting a cautious stance. The derivatives market activity points to increased hedging and speculative positioning, possibly anticipating near-term volatility or awaiting clearer directional cues. Investors should monitor changes in open interest alongside price movements closely to gauge whether the current positioning signals a potential breakout or a continuation of consolidation.

Given the Hold rating and the downgrade from Buy, investors may prefer to adopt a wait-and-watch approach, focusing on fundamental developments and sector trends before committing fresh capital. The stock’s liquidity and large market capitalisation continue to make it a viable option for institutional and retail investors seeking exposure to the telecom sector, but the current mixed signals warrant prudence.

Outlook and Conclusion

Bharti Airtel’s recent open interest surge in derivatives highlights a phase of active repositioning by market participants amid a backdrop of price consolidation and sectoral challenges. While the stock remains technically supported over the longer term, short-term indicators and falling delivery volumes suggest caution. The downgrade to Hold by MarketsMOJO reflects this nuanced outlook.

Investors should continue to monitor open interest trends, volume patterns, and price action closely, as these will provide critical insights into the evolving market sentiment. The telecom sector’s competitive landscape and regulatory developments will also play a pivotal role in shaping Bharti Airtel’s near-term trajectory.

Overall, the derivatives market activity signals a market in flux, with participants hedging risks and positioning for potential volatility rather than committing to a definitive directional move at this stage.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today