Delhivery Ltd Sees Sharp Open Interest Surge Amid Positive Price Momentum

Open Interest and Volume Dynamics

The latest data reveals that Delhivery’s open interest (OI) in futures and options contracts rose from 21,559 to 24,188 contracts, an increase of 2,629 contracts or 12.19% on 20 Feb 2026. This expansion in OI is accompanied by a futures volume of 12,564 contracts, indicating robust trading activity. The combined futures and options value stands at approximately ₹5,994 crores, with futures alone accounting for ₹594 crore in notional value. The underlying stock price closed at ₹429, outperforming its sector by 0.73% and registering a 0.93% gain on the day, outperforming the Sensex’s 0.42% rise.

Market Positioning and Price Trends

Delhivery’s price action has shown signs of a trend reversal after two consecutive days of decline, now trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day. This technical strength suggests that buyers are stepping in, supported by the surge in open interest which often reflects fresh directional bets. However, delivery volume has fallen sharply by 52.58% compared to the 5-day average, indicating reduced investor participation in the cash segment despite the derivatives activity.

Implications of Rising Open Interest

A rising open interest alongside increasing prices typically signals that new long positions are being established, reflecting bullish sentiment among traders. In Delhivery’s case, the 12.2% jump in OI coupled with a price gain suggests that market participants are positioning for further upside in the near term. The futures value of ₹594 crore and the substantial options value exceeding ₹5,363 crore highlight significant capital inflows into derivative contracts, underscoring the stock’s appeal as a trading vehicle.

Sector and Market Context

Operating within the transport services sector, Delhivery is classified as a small-cap stock with a market capitalisation of ₹32,329 crore. Despite its relatively modest mojo score of 47.0 and a recent downgrade from Strong Sell to Sell on 27 Jan 2026, the stock’s recent outperformance relative to its sector and the broader market indicates a potential shift in investor sentiment. The stock’s liquidity, sufficient to support trades up to ₹1.95 crore based on 2% of the 5-day average traded value, makes it accessible for institutional and retail traders alike.

Analysing Investor Behaviour and Derivative Strategies

The divergence between falling delivery volumes and rising derivatives activity suggests that short-term traders and institutional investors may be driving the current momentum. The decline in delivery volume by over 50% indicates that fewer investors are holding shares outright, while the surge in open interest points to increased speculative or hedging activity in the derivatives market.

Options data, with a notional value exceeding ₹5,363 crore, further supports the view that market participants are actively deploying complex strategies, possibly including spreads and straddles, to capitalise on expected volatility or directional moves. The futures market’s sizeable turnover and open interest increase imply that directional bets, likely long positions, are being accumulated ahead of potential catalysts.

Technical Outlook and Risk Considerations

Delhivery’s position above all major moving averages is a positive technical signal, often interpreted as a bullish trend confirmation. However, the stock’s mojo grade remains at Sell, reflecting underlying concerns about fundamentals or valuation. Investors should weigh the technical strength against the downgrade and the falling investor participation in the cash market, which could signal caution among long-term holders.

Given the stock’s small-cap status and sector-specific risks, including logistics challenges and regulatory factors, the recent surge in derivatives activity may also reflect short-term speculative interest rather than a sustained fundamental turnaround. Monitoring open interest trends alongside price action in the coming sessions will be crucial to assess whether the current momentum can be sustained.

Conclusion: Navigating the Derivatives-Driven Momentum

The recent surge in open interest for Delhivery Ltd’s derivatives contracts, combined with a positive price reversal and strong technical positioning, highlights a renewed interest from traders anticipating further gains. While the stock’s mojo grade remains cautious, the derivatives market activity suggests that short-term directional bets are being placed with conviction.

Investors should remain vigilant, balancing the technical signals with fundamental assessments and sector outlooks. The divergence between falling delivery volumes and rising derivatives activity underscores the importance of monitoring both cash and derivatives markets to gauge true investor sentiment. For those considering exposure, understanding the nuances of open interest trends and volume patterns will be key to making informed decisions in this evolving landscape.

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