Open Interest and Volume Dynamics
On 20 Feb 2026, Havells India Ltd. (symbol: HAVELLS) recorded an open interest (OI) of 37,832 contracts, up from 33,538 the previous day, marking a substantial increase of 4,294 contracts or 12.8%. This rise in OI was accompanied by a futures volume of 15,970 contracts, indicating active participation in the derivatives market. The combined futures and options value stood at approximately ₹64,193 crores, with futures contributing ₹63.77 crores and options an overwhelming ₹4,909 crores, underscoring the significant liquidity and interest in the stock’s derivatives.
The underlying stock price closed at ₹1,407, showing a modest 0.98% gain on the day. However, this price movement lagged behind the Electronics & Appliances sector’s 1.35% gain and the Sensex’s 0.42% rise, suggesting relative underperformance despite increased derivatives activity.
Technical Indicators and Market Positioning
Technically, Havells India’s price remains above its 20-day and 50-day moving averages but below the 5-day, 100-day, and 200-day averages. This mixed technical picture points to short-term weakness amid longer-term support levels. Notably, delivery volumes on 19 Feb fell sharply by 46.87% to 1.35 lakh shares compared to the five-day average, signalling reduced investor participation in the cash segment despite the derivatives surge.
Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹1.22 crore comfortably. This liquidity profile is crucial for institutional players and large traders looking to build or unwind positions without significant market impact.
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Interpreting the Open Interest Surge
The 12.8% jump in open interest suggests fresh capital inflows and increased speculative or hedging activity. Such a rise often indicates that new positions are being created rather than closed out, which can precede significant price moves. However, the stock’s underperformance relative to its sector and the broader market tempers bullish expectations.
Market participants may be positioning for a directional move, but the mixed technical signals and falling delivery volumes imply caution. The futures value of ₹63.77 crores and the enormous options value highlight that traders are actively using options strategies, possibly to hedge or speculate on volatility rather than directional bets alone.
Mojo Score and Analyst Ratings
Havells India currently holds a Mojo Score of 44.0, categorised as a Sell, downgraded from Hold on 20 Jan 2026. This downgrade reflects deteriorating fundamentals or momentum as assessed by MarketsMOJO’s proprietary analytics. The company’s market cap grade stands at 2, indicating mid-cap status with moderate liquidity and market interest.
Given the downgrade and the recent derivatives activity, investors should weigh the risks carefully. The stock’s relative weakness in price action despite increased open interest may signal that the market is bracing for potential headwinds or volatility ahead.
Sector and Market Context
The Electronics & Appliances sector has shown resilience with a 1.35% gain on the day, outperforming the Sensex’s 0.42% rise. Havells’ slight underperformance by 0.5% against its sector peers suggests company-specific factors may be influencing investor sentiment. These could include concerns over earnings growth, margin pressures, or competitive dynamics within the industry.
Investors should monitor upcoming quarterly results and management commentary for clearer directional cues. The derivatives market activity may be an early indicator of shifting expectations among institutional traders.
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Investor Takeaways and Outlook
For investors and traders, the surge in Havells India’s open interest is a signal to closely monitor market developments. The increase in derivatives activity, particularly in options, suggests that volatility expectations may be rising. However, the stock’s inability to outperform its sector and the decline in delivery volumes indicate that conviction among long-term investors is waning.
Short-term traders might find opportunities in the heightened volatility and liquidity, but a cautious approach is warranted given the mixed technical and fundamental signals. The downgrade to a Sell rating by MarketsMOJO further emphasises the need for prudence.
Looking ahead, key support levels near the 20-day and 50-day moving averages will be critical to watch. A sustained break below these could trigger further downside, while a recovery above the 5-day and 100-day averages might restore some bullish momentum.
Ultimately, Havells India’s derivatives market activity reflects a market in flux, with participants positioning for potential shifts but lacking a clear consensus on direction. Investors should stay alert to earnings updates, sector trends, and broader market cues to navigate this evolving landscape effectively.
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