Key Events This Week
2 Feb: Upgrade to Hold rating by MarketsMOJO amid improved technical outlook
4 Feb: Significant 10.04% surge in open interest with strong price rally
6 Feb: Week closes at Rs.1,881.40, up 3.54% for the week
2 February: Upgrade to Hold Rating Boosts Sentiment
Blue Star Ltd began the week on a positive note, gaining 1.35% to close at Rs.1,841.60 despite the Sensex falling 1.03% that day. This outperformance coincided with MarketsMOJO’s upgrade of the stock’s Mojo Grade from Sell to Hold on 30 January 2026, reflecting improved technical indicators despite flat recent financials. The upgrade highlighted Blue Star’s strong long-term fundamentals, including a 53.50% CAGR in operating profits and a healthy 17.93% average ROE, balanced against a premium valuation and short-term earnings stagnation.
The technical outlook showed a shift from bearish to mildly bearish trends, with monthly MACD and KST indicators improving and weekly Dow Theory readings turning mildly bullish. These signals suggested a potential stabilisation in price momentum, encouraging cautious optimism among investors. Institutional ownership at 41.41% further underpinned confidence in the stock’s quality profile.
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3 February: Profit Taking Amid Broader Market Rally
On 3 February, Blue Star’s stock price declined 1.37% to Rs.1,816.30, underperforming the Sensex which surged 2.63% that day. The volume spiked to 24,773 shares, indicating active trading. This dip followed the previous day’s gains and coincided with a broad market rally, suggesting some profit-taking by investors. Despite the setback, the stock remained above its previous week’s close, maintaining a positive weekly trajectory.
4 February: Open Interest Surge Signals Renewed Bullish Momentum
Blue Star rebounded strongly on 4 February, surging 3.51% to close at Rs.1,880.05, its highest close of the week. This rally was accompanied by a significant 10.04% increase in open interest in the derivatives segment, rising from 10,702 to 11,776 contracts. Futures volume was robust at 7,861 contracts, with combined futures and options notional value reaching approximately ₹1,79,83.8 lakhs.
The stock outperformed its sector, which gained 3.48%, and the Sensex’s modest 0.37% rise. The price touched an intraday high of Rs.1,892.90, trading above all key moving averages, signalling strong technical momentum. Delivery volumes also surged, with 3.47 lakh shares delivered on 3 February, a 25.96% increase over the five-day average, indicating genuine investor interest and accumulation during dips.
This combination of rising open interest, volume, and price appreciation suggests fresh capital inflows and bullish positioning by market participants, reflecting confidence in Blue Star’s near-term prospects within the electronics and appliances sector.
5 February: Minor Pullback on Heavy Volume
The stock experienced a slight pullback on 5 February, declining 1.27% to Rs.1,856.15 on heavy volume of 85,591 shares. This correction followed the strong rally the previous day and coincided with a 0.53% decline in the Sensex. The pullback may represent short-term profit booking amid elevated volumes, but the stock remained well above its weekly open, maintaining an overall positive trend.
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6 February: Week Closes on a Positive Note
Blue Star closed the week at Rs.1,881.40, up 1.36% on the final trading day and marking a 3.54% gain for the week. The Sensex also rose modestly by 0.10% to 36,730.20. The stock’s outperformance over the benchmark by 2.03% for the week underscores its relative strength amid mixed market conditions. The closing price was near the week’s high, reflecting sustained buying interest and technical resilience.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.1,841.60 | +1.35% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.1,816.30 | -1.37% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.1,880.05 | +3.51% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.1,856.15 | -1.27% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.1,881.40 | +1.36% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: Blue Star’s 3.54% weekly gain outpaced the Sensex’s 1.51%, supported by an upgrade to Hold reflecting improved technicals and strong long-term fundamentals. The significant 10.04% surge in open interest on 4 February, coupled with rising delivery volumes and price appreciation above key moving averages, indicates renewed bullish positioning and fresh capital inflows.
Cautionary Notes: Despite technical improvements, the company’s recent financials remain flat with EPS at a quarterly low and cash reserves declining. The premium valuation multiples and mixed technical indicators suggest that while momentum is improving, investors should remain cautious of short-term volatility and sectoral headwinds.
Conclusion
Blue Star Ltd demonstrated resilience and relative strength during the week, delivering a 3.54% gain that outperformed the broader market. The upgrade to a Hold rating by MarketsMOJO, driven by improved technical indicators, and the surge in derivatives open interest highlight a shift towards cautious optimism among investors. While the stock’s long-term fundamentals remain robust, flat recent financial performance and premium valuations temper enthusiasm.
Market participants should monitor upcoming earnings and sector developments closely, as these will be critical in sustaining momentum. For now, Blue Star stands as a mid-cap stock attracting renewed interest, with technical and derivatives market signals providing valuable insights into evolving investor sentiment.
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