Open Interest and Volume Dynamics
On 26 Feb 2026, Divis Laboratories recorded an open interest of 37,193 contracts in its futures and options, marking a significant increase of 3,643 contracts or 10.86% compared to the previous OI of 33,550. This rise in OI was accompanied by a volume of 36,851 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹26,236.6 lakhs, while the options segment's notional value stood at an impressive ₹21,902.2 crores, culminating in a total derivatives value of ₹30,610.7 lakhs.
The underlying stock price closed at ₹6,432, having touched an intraday high of ₹6,564.5, up 2.64% on the day. This price movement aligns with the sector's performance, which saw a 0.48% gain, while the broader Sensex edged up marginally by 0.05%. Divis Laboratories outperformed both benchmarks with a 0.77% return on the day and a 2.8% gain over the past two consecutive sessions.
Investor Positioning and Market Sentiment
The surge in open interest alongside rising volumes suggests that investors are actively building positions in Divis Laboratories’ derivatives, potentially anticipating further price movements. The stock is trading above all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicating a strong technical uptrend. Additionally, delivery volumes on 25 Feb surged to 2.41 lakh shares, a 58.39% increase over the five-day average, signalling rising investor participation in the cash market as well.
However, despite these positive technical indicators, the company’s Mojo Score stands at 48.0 with a Mojo Grade of Sell, downgraded from Hold as of 1 Feb 2026. This reflects a cautious stance based on fundamental and market quality assessments, including a Market Cap Grade of 1, which suggests limited upside from a valuation perspective. The large market capitalisation of ₹1,72,551 crore places Divis Laboratories firmly in the large-cap category, attracting institutional interest but also scrutiny regarding growth prospects.
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Implications of the Open Interest Surge
The 10.86% increase in open interest is a strong signal that new money is flowing into Divis Laboratories’ derivatives market. Typically, rising OI coupled with rising prices suggests fresh long positions being established, reflecting bullish sentiment. However, the relatively modest day change of 1.05% and the Mojo Grade downgrade imply that some investors may be hedging or taking cautious stances amid valuation concerns.
Market participants should note that the futures value of ₹26,236.6 lakhs and the options notional value exceeding ₹21,900 crores indicate substantial liquidity and interest in hedging or speculative strategies. The stock’s liquidity, measured at 2% of the five-day average traded value, supports trade sizes of up to ₹2.93 crore, making it accessible for institutional investors to manoeuvre sizeable positions without excessive slippage.
Directional Bets and Potential Market Moves
Given the technical strength and rising investor participation, directional bets appear to be leaning towards a continuation of the uptrend in Divis Laboratories. The stock’s consistent gains over two days and its position above all major moving averages reinforce this view. Yet, the Mojo Grade Sell rating and the Market Cap Grade of 1 caution investors to weigh the risk of a potential pullback or consolidation phase.
Options market activity, with a substantial notional value, may also indicate increased use of strategies such as covered calls or protective puts, reflecting a nuanced approach to risk management. Traders should monitor changes in put-call ratios and strike price concentrations to better understand market expectations for volatility and price direction.
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Conclusion: Balancing Optimism with Caution
Divis Laboratories Ltd’s recent surge in open interest and volume in the derivatives market highlights growing investor engagement and a generally positive technical outlook. The stock’s outperformance relative to the sector and Sensex, combined with rising delivery volumes, underscores genuine interest from both traders and long-term investors.
Nevertheless, the downgrade to a Mojo Grade Sell and the low Market Cap Grade suggest that fundamental concerns and valuation pressures remain relevant. Investors should carefully analyse their risk tolerance and consider the broader market context before increasing exposure. Monitoring open interest trends, volume patterns, and price action in the coming sessions will be crucial to discerning whether the current momentum can sustain or if a correction is imminent.
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