Delhivery Ltd Gains 2.56%: 4 Key Factors Driving the Week’s Market Moves

16 February: Technical Momentum Shifts Amid Mixed Market Signals

Delhivery began the week with a slight decline of 0.43%, closing at Rs.418.55, despite the Sensex gaining 0.70%. The stock’s technical momentum shifted from sideways to mildly bearish, reflecting a cautious stance among investors. Key indicators such as the MACD and moving averages suggested weakening momentum, while the On-Balance Volume (OBV) remained bullish, indicating underlying accumulation. The stock traded within a range of Rs.414.00 to Rs.426.80, well below its 52-week high of Rs.489.95 but comfortably above its low of Rs.236.80. This mixed technical picture set the tone for a week of volatility.

18 February: Signs of Technical Rebound Amid Mixed Momentum Indicators

On 18 February, Delhivery rebounded strongly, surging 3.93% to close at Rs.435.00, outperforming the Sensex’s 0.32% gain. This marked the week’s high and reflected a shift to a mildly bullish technical trend. The MACD on weekly charts turned positive, while Bollinger Bands on both weekly and monthly timeframes indicated strengthening momentum. However, daily moving averages remained mildly bearish, underscoring ongoing short-term consolidation. The stock’s RSI hovered in neutral territory, suggesting no extreme price pressures. This rebound was supported by bullish volume signals, although the MarketsMOJO grade remained a cautious Sell.

19 February: Notable Surge in Derivatives Open Interest Amid Price Dip

Despite a 1.12% decline to Rs.427.20 on 19 February, Delhivery saw a significant 10.22% increase in open interest in its derivatives segment, rising to 24,097 contracts. Futures volume was robust at 13,656 contracts, with a combined derivatives market value of approximately ₹54,900 lakhs. The stock outperformed its sector benchmark, which fell 0.98%, and the Sensex, which declined 1.45%, signalling relative resilience. However, delivery volumes dropped sharply by 60.44% to 6.07 lakh shares, indicating reduced investor participation in the cash market. The stock remained above all key moving averages, suggesting underlying technical strength despite short-term price weakness.

20 February: Significant Open Interest Surge Amid Positive Price Momentum

Delhivery closed the week on a positive note, gaining 0.91% to Rs.431.10 and outperforming the Sensex’s 0.41% rise. Open interest surged again by 14.87% to 24,765 contracts, with futures and options turnover reaching ₹68,788 lakhs. This increase in derivatives activity accompanied a reversal of the prior two-day decline, signalling renewed bullish sentiment among traders. The stock traded above all major moving averages, reinforcing a bullish technical setup. However, delivery volumes continued to decline, down 52.58% on 19 February, suggesting that speculative derivatives trading may be driving the momentum more than cash market accumulation. The MarketsMOJO Sell rating remained unchanged, reflecting ongoing fundamental caution.

Key Takeaways

Delhivery’s 2.56% weekly gain outpaced the Sensex’s 0.39%, highlighting relative strength amid a mixed technical backdrop. The week was characterised by a shift from mildly bearish to mildly bullish momentum, supported by positive MACD signals and bullish Bollinger Bands on weekly charts. However, daily moving averages and monthly MACD remained cautious, reflecting ongoing consolidation.

The surge in derivatives open interest on consecutive days (10.22% on 19 Feb and 14.87% on 20 Feb) indicates heightened trader activity and growing bullish positioning, despite declining delivery volumes signalling reduced long-term investor participation in the cash market. This divergence suggests that speculative trading in futures and options is currently driving price action more than fundamental accumulation.

Delhivery’s MarketsMOJO score remains at 47.0 with a Sell grade, reflecting fundamental caution despite technical improvements. The stock’s ability to hold above key moving averages provides a technical floor, but the mixed signals warrant a balanced approach. Investors should monitor volume trends, open interest changes, and broader sector developments to assess sustainability of the current momentum.

Conclusion

Delhivery Ltd’s week was marked by a complex interplay of technical shifts, derivatives market activity, and cautious fundamental ratings. The stock’s 2.56% gain and outperformance of the Sensex underscore resilience, while the surge in open interest points to increased market interest and potential volatility ahead. However, declining delivery volumes and a persistent Sell rating advise prudence.

Overall, the stock appears to be in a transitional phase, with short-term bullish momentum tempered by longer-term caution. Market participants should closely watch technical indicators and derivatives positioning for clearer directional cues in the coming weeks.

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