Open Interest and Volume Dynamics
The latest data reveals that Dabur’s open interest (OI) in derivatives rose sharply from 35,810 contracts to 41,151, an increase of 5,341 contracts or 14.91% on 17 February 2026. This surge in OI was accompanied by a futures volume of 40,993 contracts, indicating robust trading activity. The futures value stood at ₹38,216.37 lakhs, while the options segment exhibited an enormous notional value of approximately ₹22,702 crore, underscoring the stock’s significant derivatives market presence.
Such a rise in open interest typically suggests fresh positions being established rather than existing ones being squared off. This can be interpreted as increased conviction among traders, either in anticipation of a directional move or as part of hedging strategies. However, the concurrent price action and volume patterns provide further nuance to this interpretation.
Price Performance and Market Context
On the same day, Dabur’s stock price declined by 1.41%, underperforming the FMCG sector’s modest gain of 0.38% and the Sensex’s 0.22% rise. The stock touched an intraday low of ₹503.5, down 2.57% from the previous close, with heavier volume traded near this low point. This suggests selling pressure intensified as the day progressed, despite the increased open interest.
Technically, Dabur’s price remains above its 50-day, 100-day, and 200-day moving averages, signalling a longer-term uptrend. However, it is trading below its 5-day and 20-day moving averages, indicating short-term weakness and potential consolidation or correction. The delivery volume on 17 February was 5.32 lakh shares, down 28.35% from the five-day average, pointing to reduced investor participation in the cash segment amid volatile price action.
Market Positioning and Directional Bets
The increase in open interest alongside a price decline often points to fresh short positions being added, or a mix of long liquidation and new shorts. Given the sizeable rise in OI and the fall in price, it is plausible that traders are positioning for a near-term correction or volatility spike. However, the sustained higher moving averages and the company’s strong fundamentals temper the bearish narrative.
Dabur’s market cap stands at ₹90,556 crore, categorising it as a mid-cap stock within the FMCG sector. Its MarketsMOJO score has recently improved to 72.0, upgrading its mojo grade from Hold to Buy on 16 February 2026. This upgrade reflects enhanced financial metrics, valuation appeal, and positive earnings outlook, which may attract institutional interest despite short-term price fluctuations.
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Liquidity and Trading Implications
Dabur’s liquidity remains adequate for sizeable trades, with the stock’s average traded value over five days supporting trade sizes up to ₹1.24 crore without significant market impact. This liquidity profile is crucial for institutional investors and derivatives traders looking to establish or unwind positions efficiently.
The weighted average price skewed towards the day’s low suggests that sellers dominated the session, potentially triggering stop-loss orders and short-term profit booking. However, the underlying open interest increase indicates that some market participants are either initiating fresh shorts or hedging existing long exposures, anticipating further price volatility.
Fundamental Outlook and Sector Comparison
Despite the recent price softness, Dabur’s fundamentals remain robust. The company operates in the resilient FMCG sector, which has shown steady growth and defensive characteristics amid broader market uncertainties. Dabur’s mojo grade upgrade to Buy reflects improved earnings quality, valuation metrics, and positive sectoral tailwinds.
Compared to its FMCG peers, Dabur’s recent underperformance may represent a tactical correction rather than a structural weakness. Investors should monitor upcoming quarterly results and sector developments to gauge whether the current open interest surge translates into sustained directional moves or short-term volatility.
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Investor Takeaway
The recent spike in open interest in Dabur India Ltd.’s derivatives market signals increased market attention and positioning ahead of potential near-term price moves. While the stock’s short-term technical indicators suggest some weakness, the longer-term trend and fundamental upgrades provide a supportive backdrop.
Investors should weigh the mixed signals carefully. The elevated open interest and volume imply that volatility may persist, offering trading opportunities for nimble participants. Meanwhile, long-term investors may view the current price dip as a potential entry point, given Dabur’s strong mojo grade and sector positioning.
Monitoring changes in open interest alongside price and volume trends will be critical in assessing whether the market is leaning towards a sustained rally or a deeper correction. As always, a balanced approach considering both technical and fundamental factors is advisable when navigating Dabur’s evolving market landscape.
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