Divis Laboratories Sees Sharp Open Interest Surge Amid Rising Market Momentum

Open Interest and Volume Dynamics

On 26 Feb 2026, Divis Laboratories (symbol: DIVISLAB) recorded an open interest (OI) of 37,065 contracts in its derivatives, marking a 10.48% increase from the previous day’s 33,550 contracts. This rise of 3,515 contracts is significant, indicating fresh positions being established or existing ones being rolled over. The accompanying volume stood at 34,128 contracts, closely aligned with the OI, which often points to active participation rather than mere unwinding of positions.

The futures segment alone accounted for a value of approximately ₹23,949.29 lakhs, while the options segment’s notional value was substantially higher at ₹20,344.26 crores. The combined derivatives turnover thus reached ₹28,053.08 lakhs, underscoring the stock’s liquidity and attractiveness to traders.

Price and Trend Analysis

Divis Laboratories’ underlying stock price closed at ₹6,408, with an intraday high of ₹6,564.5, reflecting a 2.64% gain on the day. The stock has been on a positive trajectory, gaining 2.43% over the last two consecutive sessions. It is currently trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend across multiple timeframes.

Investor participation has also intensified, with delivery volumes on 25 Feb reaching 2.41 lakh shares, a 58.39% increase over the five-day average delivery volume. This suggests that market participants are not only trading actively but also holding shares, reflecting confidence in the stock’s near-term prospects.

Market Positioning and Directional Bets

The surge in open interest combined with rising volumes and positive price action typically indicates that traders are building directional bets rather than merely hedging. Given the pharmaceutical sector’s steady performance and Divis Laboratories’ leadership within it, the increased OI may reflect bullish sentiment among institutional and retail investors alike.

However, it is important to note that the company’s Mojo Score currently stands at 48.0 with a Mojo Grade of Sell, downgraded from Hold as of 1 Feb 2026. This suggests that despite the recent positive price momentum and volume surge, the underlying fundamentals or valuation metrics may not fully support a sustained rally at this juncture. The Market Cap Grade is 1, indicating a large-cap status but with limited upside potential as per the current assessment.

Sector and Benchmark Comparison

Divis Laboratories’ one-day return of 0.23% is marginally below the Pharmaceuticals & Biotechnology sector’s 0.27% gain but outperforms the Sensex, which declined by 0.18% on the same day. This relative strength within its sector and against the broader market highlights the stock’s resilience amid mixed market conditions.

The pharmaceutical sector continues to attract investor interest due to its defensive qualities and growth prospects driven by innovation and export demand. Divis Laboratories, as a large-cap leader with a market capitalisation of ₹1,72,551 crores, remains a key beneficiary of these trends despite the cautious Mojo Grade.

Liquidity and Trading Considerations

Liquidity remains robust for Divis Laboratories, with the stock’s traded value comfortably supporting trade sizes up to ₹2.93 crores based on 2% of the five-day average traded value. This ensures that institutional investors can enter or exit positions without significant market impact, which is crucial given the recent surge in derivatives activity.

Traders should monitor the evolving open interest and volume patterns closely, as sustained increases in OI alongside rising prices often precede further upside moves. Conversely, any sharp reversals in price accompanied by falling OI could signal profit-taking or position unwinding.

Outlook and Investor Takeaways

While the recent open interest surge and volume expansion in Divis Laboratories’ derivatives market point to increased bullish positioning, investors should weigh this against the company’s current Mojo Grade Sell rating. The downgrade from Hold reflects concerns over valuation or near-term fundamentals that may temper upside potential.

Nonetheless, the stock’s strong technical positioning above all major moving averages and rising delivery volumes indicate underlying strength. Investors with a medium to long-term horizon may consider accumulating on dips, while short-term traders could capitalise on momentum-driven moves supported by derivatives activity.

Given the pharmaceutical sector’s defensive appeal and Divis Laboratories’ leadership, the stock remains a key watchlist candidate. Monitoring open interest trends alongside price action will be critical to gauge whether the current surge translates into sustained gains or a short-lived speculative spike.

Summary

In summary, Divis Laboratories Ltd has experienced a meaningful increase in open interest by over 10% in its derivatives segment, accompanied by rising volumes and positive price momentum. Despite a cautious fundamental outlook reflected in its Mojo Grade Sell, the stock’s technical strength and liquidity support continued investor interest. Market participants should remain vigilant to evolving positioning and sector dynamics to make informed decisions.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →