Open Interest and Volume Dynamics
On 20 Feb 2026, Bharti Airtel's open interest (OI) in derivatives rose sharply to 1,75,373 contracts from 1,56,084 the previous day, marking an absolute increase of 19,289 contracts or 12.36%. This surge in OI contrasts with the day's volume of 72,214 contracts, indicating that new positions are being established rather than existing ones being squared off. The futures segment alone accounted for a value of approximately ₹2,79,523 lakhs, while options contributed a staggering ₹40,886.95 crores, underscoring the significant derivatives market interest in the stock.
The underlying stock price closed at ₹1,990, down marginally by 0.35% on the day, underperforming the sector's decline of 0.11% and the Sensex's gain of 0.61%. Notably, Bharti Airtel has been on a two-day losing streak, shedding 1.75% cumulatively. Despite this, the stock remains above its 200-day moving average, though it trades below its 5-day, 20-day, 50-day, and 100-day averages, reflecting short- to medium-term weakness amid long-term support.
Investor Participation and Liquidity Considerations
Investor participation appears to be waning, with delivery volumes on 19 Feb falling by 35.88% to 17.97 lakh shares compared to the five-day average. This decline in delivery volume suggests reduced conviction among long-term holders or a shift towards trading rather than investing. However, liquidity remains adequate, with the stock's traded value supporting a trade size of ₹16.43 crores based on 2% of the five-day average traded value, ensuring that market participants can execute sizeable orders without significant price impact.
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Market Positioning and Directional Bets
The increase in open interest amid a slight price decline suggests that market participants are actively repositioning, possibly anticipating volatility or a directional move. The disproportionate rise in options value relative to futures indicates a preference for hedging or speculative strategies using options, which offer asymmetric risk-reward profiles.
Given Bharti Airtel's current mojo score of 68.0 and a mojo grade downgraded from Buy to Hold as of 29 Dec 2025, investors appear cautious. The downgrade reflects tempered expectations amid sector headwinds and competitive pressures. The market cap grade of 1 confirms its status as a large-cap stock, attracting institutional interest but also subject to broader market sentiment swings.
Technical indicators reveal a mixed picture. While the stock remains above its 200-day moving average, signalling long-term support, its position below shorter-term averages suggests near-term weakness. This technical setup often attracts short sellers or cautious traders who may be increasing put option open interest as protection or to capitalise on potential downside.
Sector and Broader Market Context
The telecom services sector has experienced modest declines recently, with Bharti Airtel's performance broadly in line with peers. The sector's 1-day return of -0.11% contrasts with the Sensex's positive 0.61%, indicating relative underperformance. This environment may be prompting traders to hedge or speculate on further sector weakness, reflected in the derivatives activity.
Moreover, the fall in delivery volumes suggests that investors are less inclined to hold the stock outright, favouring derivatives for exposure or risk management. This shift could be driven by macroeconomic uncertainties, regulatory developments, or competitive dynamics within the telecom industry.
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Implications for Investors and Traders
The surge in open interest combined with subdued price action and declining delivery volumes suggests a market in flux. Traders may be positioning for a potential breakout or breakdown, using derivatives to hedge or speculate. The elevated options value points to increased activity in calls and puts, which could signal expectations of heightened volatility in the near term.
For long-term investors, the downgrade to a Hold rating and the current technical setup advise caution. While Bharti Airtel remains a large-cap telecom leader with a solid market presence, near-term headwinds and sector challenges warrant a measured approach. Monitoring open interest trends alongside price and volume will be crucial to gauge evolving market sentiment.
Institutional investors and sophisticated traders should consider the balance between futures and options positioning to understand the prevailing market bias. The data suggests a nuanced outlook, with neither clear bullish nor bearish dominance, but rather a strategic repositioning ahead of potential catalysts.
Conclusion
Bharti Airtel's recent open interest surge in derivatives highlights active repositioning amid a complex market backdrop. While the stock faces short-term pressure, its long-term fundamentals and large-cap status provide a degree of stability. Investors and traders should closely monitor derivatives activity, price trends, and sector developments to navigate the evolving landscape effectively.
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