Fortis Healthcare Sees Significant Open Interest Surge Amidst Mixed Market Signals

Open Interest and Volume Dynamics

On 20 Feb 2026, Fortis Healthcare's open interest (OI) in futures and options contracts rose sharply to 27,139 from the previous 24,057, marking an increase of 3,082 contracts or 12.81%. This surge in OI was accompanied by a futures volume of 18,612 contracts, reflecting active participation in the derivatives market. The combined futures and options value stood at approximately ₹67,224.19 lakhs, with futures alone accounting for ₹66,581.52 lakhs, underscoring the substantial monetary flow in Fortis derivatives.

The underlying stock price closed at ₹918, having touched an intraday high of ₹926.9, outperforming its hospital sector peers by 1.23% and the broader Sensex by 1.08%. The stock’s 1-day return of 1.50% notably exceeded the sector’s 0.34% and Sensex’s 0.42% gains, indicating relative strength on the day.

Market Positioning and Moving Averages

Technically, Fortis Healthcare’s price remains above its 5-day, 20-day, 50-day, and 200-day moving averages, signalling short- to long-term bullish momentum. However, it trades below the 100-day moving average, suggesting some resistance at intermediate levels. This mixed technical picture may be contributing to the cautious yet optimistic positioning seen in the derivatives market.

Interestingly, delivery volumes have declined sharply, with a 55.46% drop in delivery volume to 2.97 lakh shares on 19 Feb compared to the 5-day average. This fall in investor participation at the delivery level contrasts with the rising open interest in derivatives, implying that traders may be favouring short-term speculative positions over long-term holdings.

Interpreting the Open Interest Surge

The 12.8% increase in open interest is a significant development, especially when coupled with the stock’s outperformance relative to its sector and benchmark indices. Rising OI alongside a price increase typically indicates fresh buying interest and the addition of new long positions, suggesting that market participants are positioning for further upside in Fortis Healthcare.

However, the decline in delivery volumes and the stock’s position below the 100-day moving average hint at some underlying caution. Traders may be hedging their bets or employing spread strategies in the derivatives market to manage risk amid uncertain broader market conditions.

Futures and Options Activity

The futures value of ₹66,581.52 lakhs and options value exceeding ₹6,718 crores reflect robust liquidity and active trading interest. Such high notional values in derivatives often attract institutional players and sophisticated traders who seek to capitalise on short-term volatility or directional moves.

Given the hospital sector’s steady growth prospects and Fortis Healthcare’s mid-cap status with a market capitalisation of ₹69,471.25 crores, the stock remains an attractive candidate for strategic positioning. The current Mojo Score of 51.0 and a Hold grade, downgraded from Buy on 13 Jan 2025, indicate a neutral stance, balancing growth potential with valuation and risk considerations.

Sector and Market Context

The hospital sector has shown resilience amid evolving healthcare demands, but it faces headwinds from regulatory changes and cost pressures. Fortis Healthcare’s ability to outperform its sector on a given day suggests company-specific strengths, possibly linked to operational efficiencies or positive news flow.

Nevertheless, the broader market environment remains cautious, with investors closely monitoring macroeconomic indicators and policy developments. This backdrop may explain the mixed signals in Fortis’s derivatives market, where increased open interest coexists with subdued delivery volumes.

Investor Takeaways and Outlook

For investors and traders, the recent surge in Fortis Healthcare’s open interest signals an active market positioning phase. The increase in OI alongside a price rise generally favours a bullish outlook, but the subdued delivery volumes and technical resistance near the 100-day moving average counsel prudence.

Market participants should monitor whether the open interest continues to climb in tandem with price appreciation, which would confirm sustained buying interest. Conversely, if OI declines or price falters, it may indicate profit-taking or a shift towards defensive positioning.

Given the current Mojo Grade of Hold and a moderate Mojo Score of 51.0, investors might consider maintaining existing positions while awaiting clearer directional cues. The stock’s liquidity, with a tradable size of approximately ₹2.11 crores based on recent averages, supports active trading strategies for both institutional and retail participants.

Conclusion

Fortis Healthcare Ltd’s derivatives market activity reveals a nuanced picture of investor sentiment. The substantial open interest increase reflects renewed interest and potential directional bets, while mixed technical signals and falling delivery volumes suggest caution. As the hospital sector navigates evolving challenges, Fortis’s performance and market positioning will remain closely watched by investors seeking to balance growth prospects with risk management.

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