Key Events This Week
27 Jan: Open interest in derivatives surged 10.8% amid mixed price action
28 Jan: Stock edged up 0.24% with increased futures volume
29 Jan: Open interest rose 12.1% despite price decline; Q3 FY26 results released
30 Jan: Dabur reported record quarterly sales and profits amid positive financial trend
27 January 2026: Open Interest Surges Amid Price Weakness
On 27 January, Dabur India’s stock price declined by 0.82% to close at Rs.514.40, despite the Sensex rising 0.50% to 35,786.84. The day saw a notable 10.8% increase in open interest in the derivatives segment, rising from 22,842 to 25,310 contracts. Futures volume was robust at 11,835 contracts, with a futures value of approximately ₹19,178 lakhs and options notional value of ₹5,855 crores, indicating heightened market activity.
This surge in open interest alongside falling prices suggests fresh positioning, possibly a mix of new short bets and hedging strategies. Technically, the stock traded below its short-term moving averages but remained above its 50-day and 200-day averages, signalling medium- to long-term support despite short-term weakness. Delivery volumes dropped sharply by 43.45% to 9.07 lakh shares, reflecting reduced conviction among long-term holders.
28 January 2026: Modest Price Gain with Increased Market Participation
Dabur’s stock edged up 0.24% to Rs.515.65 on 28 January, outperforming the previous day’s decline. The Sensex gained 1.12% to 36,188.16, reflecting a broadly positive market environment. Futures and options activity remained elevated, supporting the view of active repositioning by traders. Volume increased to 59,641 shares, indicating improved liquidity and participation.
Despite the slight price gain, the stock’s technical indicators remained mixed, with short-term moving averages still exerting resistance. The derivatives market activity suggested ongoing uncertainty, with investors balancing between cautious optimism and risk management.
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29 January 2026: Open Interest Climbs Further Amid Price Decline and Quarterly Results
The stock closed at Rs.508.60 on 29 January, down 1.37%, underperforming the Sensex which rose 0.22% to 36,266.59. Open interest in derivatives surged 12.1% to 28,725 contracts, with futures volume at 16,634 contracts and a futures value of ₹16,114.8 lakhs. The total derivatives turnover was ₹18,041.7 lakhs, reflecting active speculative and hedging activity despite price weakness.
Dabur’s share price traded near intraday lows, touching ₹499.35, and remained below all key moving averages except the 200-day, indicating a short- to medium-term bearish bias. Delivery volumes declined by 26.73% to 12.7 lakh shares, signalling waning investor conviction. The stock underperformed the FMCG sector by 1.03%, while the Sensex gained 0.38%, highlighting relative weakness.
On the same day, Dabur released its Q3 FY26 results, reporting mixed outcomes amid margin pressures. The festive quarter showed operational challenges but set the stage for the strong performance revealed the following day.
30 January 2026: Record Quarterly Performance Amid Positive Financial Trend
Despite the stock closing lower at Rs.506.85 (-0.34%), Dabur India announced its strongest quarterly results for the December 2025 quarter. Net sales reached a record ₹3,558.65 crore, with operating profit (PBDIT) at ₹734.13 crore and profit before tax (excluding other income) at ₹585.52 crore. Operating profit margins expanded to 20.63%, reflecting improved cost efficiencies and pricing power.
Earnings per share rose to ₹3.16, the highest in recent history, signalling enhanced shareholder value. MarketsMOJO’s financial trend score improved dramatically from 0 to 9 over the past three months, underscoring a positive shift in operational momentum. The operating profit to interest ratio stood at a robust 23.59 times, indicating strong financial stability.
However, the return on capital employed (ROCE) for the half-year remained subdued at 20.09%, highlighting ongoing capital efficiency challenges. The stock’s recent Mojo Grade was upgraded to Hold with a score of 65.0, reflecting cautious optimism amid mixed medium-term signals.
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Daily Price Performance Compared to Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-27 | Rs.514.40 | -0.82% | 35,786.84 | +0.50% |
| 2026-01-28 | Rs.515.65 | +0.24% | 36,188.16 | +1.12% |
| 2026-01-29 | Rs.508.60 | -1.37% | 36,266.59 | +0.22% |
| 2026-01-30 | Rs.506.85 | -0.34% | 36,185.03 | -0.22% |
Key Takeaways
Positive Signals: Dabur India demonstrated strong operational execution in Q3 FY26, posting record net sales of ₹3,558.65 crore and highest-ever EPS of ₹3.16. The expansion of operating profit margins to 20.63% and a robust operating profit to interest ratio of 23.59 times highlight improved cost management and financial stability. The financial trend score’s rise from 0 to 9 signals a positive turnaround in momentum.
Cautionary Signals: The stock underperformed the Sensex by 3.90% over the week, closing down 2.28%. Delivery volumes declined sharply, indicating reduced conviction among long-term investors. The price remains below short- and medium-term moving averages, suggesting short-term weakness. The subdued ROCE of 20.09% points to ongoing capital efficiency challenges. Elevated open interest amid falling prices reflects mixed market positioning, with potential for increased volatility.
Investors should weigh Dabur’s strong quarterly fundamentals against the technical and volume-based caution signals. The Hold Mojo Grade and score of 65.0 reflect this balanced outlook, advising careful monitoring of price trends and delivery participation in coming weeks.
Conclusion
Dabur India Ltd’s week was characterised by a complex interplay of strong quarterly financial results and mixed market signals. While the company achieved record sales, profits, and margin expansion in Q3 FY26, the stock price declined 2.28% over the week, underperforming the Sensex’s 1.62% gain. The surge in derivatives open interest alongside falling prices suggests active repositioning by traders amid uncertainty.
Technical indicators point to short-term weakness, though medium- and long-term supports remain intact. Reduced delivery volumes highlight waning investor conviction, warranting caution. The company’s improved financial trend and operational strength provide a solid foundation, but capital efficiency and consistent execution remain areas to watch.
Overall, Dabur India’s current Hold rating and mixed signals suggest a period of consolidation and selective participation, with investors advised to monitor evolving price and volume patterns closely.
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