Bharti Airtel Sees Significant Open Interest Surge Amid Mixed Market Signals

Open Interest and Volume Dynamics

On 20 Feb 2026, Bharti Airtel's open interest (OI) in derivatives rose sharply to 179,141 contracts from 156,084 the previous session, marking an increase of 23,057 contracts or 14.77%. This expansion in OI was accompanied by a futures volume of 90,869 contracts, reflecting active participation in the derivatives market. The futures value stood at ₹3,48,875.32 lakhs, while the options segment exhibited a substantial notional value of ₹51,692.07 crores, culminating in a total derivatives market value of approximately ₹3,51,976.12 lakhs.

The underlying equity price closed at ₹1,979, down 0.74% on the day, slightly underperforming the telecom sector's 0.67% decline but lagging behind the Sensex's modest 0.42% gain. Notably, the stock has been on a two-day losing streak, falling 2.02% cumulatively, indicating some near-term selling pressure.

Market Positioning and Investor Sentiment

The surge in open interest amid a falling price often points to fresh short positions being established or existing longs being unwound. However, the sizeable increase in volume and derivatives value suggests that both buyers and sellers are actively repositioning. The stock's delivery volume on 19 Feb was 17.97 lakh shares, down 35.88% from the five-day average, signalling reduced investor participation in the cash segment despite elevated derivatives activity.

Bharti Airtel's moving averages present a mixed technical picture. The stock trades above its 200-day moving average, a long-term bullish indicator, but remains below its 5-day, 20-day, 50-day, and 100-day averages, reflecting short- to medium-term weakness. This divergence may be prompting traders to hedge or speculate on near-term volatility while maintaining a longer-term bullish stance.

Implications of the Open Interest Surge

The 14.8% jump in open interest is significant for a large-cap telecom stock like Bharti Airtel, which commands a market capitalisation of ₹11,27,306.22 crores. Such a rise often indicates that new positions are being created rather than closed out, suggesting increased conviction among traders. Given the stock's recent price weakness, this could imply that market participants are either building protective hedges or speculating on further downside.

However, the elevated futures and options notional values also point to active call and put option writing and buying, which may be aimed at capturing volatility or positioning for a directional move. The telecom sector's inherent sensitivity to regulatory developments, competitive pressures, and macroeconomic factors means that traders might be anticipating upcoming catalysts.

Mojo Score and Analyst Ratings

Bharti Airtel currently holds a Mojo Score of 68.0, categorised as a 'Hold' rating by MarketsMOJO, a downgrade from its previous 'Buy' grade as of 29 Dec 2025. The downgrade reflects tempered expectations amid recent price softness and mixed technical signals. The company’s market cap grade remains at 1, indicating its status as a large-cap stock with high liquidity and institutional interest.

Liquidity metrics support active trading, with the stock able to accommodate trade sizes up to ₹16.43 crores based on 2% of its five-day average traded value. This liquidity ensures that the observed derivatives activity is supported by a robust underlying market, reducing the risk of price distortions from thin trading.

Sector and Benchmark Comparisons

Comparing Bharti Airtel’s performance with the telecom sector and broader market benchmarks reveals nuanced trends. While the stock and sector both declined modestly on the day, the Sensex managed a slight gain, underscoring the relative weakness in telecom stocks. This sectoral underperformance may be driving the increased derivatives activity as investors seek to hedge or capitalise on potential sector rotation.

Moreover, the stock’s position above the 200-day moving average suggests that long-term investors remain cautiously optimistic, even as short-term momentum indicators point to consolidation or correction phases.

Outlook and Investor Considerations

Investors should closely monitor Bharti Airtel’s derivatives activity as a barometer of market sentiment and potential directional shifts. The current open interest surge, combined with falling prices and mixed moving average signals, suggests a market in flux. Traders may be positioning for increased volatility or awaiting fresh triggers such as quarterly earnings, regulatory announcements, or sectoral developments.

Given the stock’s large-cap status and liquidity, institutional investors are likely to play a significant role in shaping price action. The downgrade to a 'Hold' rating advises caution, but the underlying fundamentals and long-term technical support above the 200-day moving average provide a degree of resilience.

In summary, the recent spike in open interest in Bharti Airtel’s derivatives market reflects a complex blend of hedging, speculative positioning, and anticipation of near-term catalysts. Market participants should weigh these factors carefully alongside broader sector and macroeconomic trends when making investment decisions.

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