Open Interest and Volume Dynamics
On 29 Dec 2025, Hindustan Petroleum’s open interest (OI) in derivatives rose sharply by 3,260 contracts, an 11.36% increase from the previous figure of 28,698 to 31,958. This uptick in OI, coupled with a substantial volume of 17,795 contracts traded, indicates heightened activity and fresh capital inflows into the stock’s futures and options market.
The futures value stood at approximately ₹77,791.27 lakhs, while the options segment exhibited an enormous notional value of ₹9,447.53 crores, culminating in a total derivatives market value of ₹78,744.58 lakhs. Such figures underscore the stock’s liquidity and the growing interest among traders to establish or adjust positions.
Price Performance and Technical Context
Hindustan Petroleum’s underlying share price closed at ₹470, just 4.99% shy of its 52-week high of ₹494.45. The stock outperformed its sector by 1.22% on the day, registering a 0.68% gain compared to the sector’s decline of 0.53% and the Sensex’s fall of 0.41%. This relative strength after three consecutive days of decline suggests a potential trend reversal.
Technically, the stock trades above its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained bullish momentum over the medium to long term. However, it remains below the 5-day moving average, indicating some short-term consolidation or profit booking. The delivery volume on 26 Dec was 3.82 lakh shares, but this figure has dropped by 69.06% against the five-day average, reflecting a temporary dip in investor participation at the delivery level.
Market Positioning and Directional Bets
The surge in open interest alongside rising volumes typically points to new positions being created rather than existing ones being squared off. Given the stock’s proximity to its yearly highs and the positive price action, it is plausible that market participants are positioning for an upward move. The elevated options market value further suggests that traders are actively hedging or speculating on volatility and directional shifts.
Moreover, the stock’s high dividend yield of 3.31% at the current price adds an attractive income component, potentially enticing long-term investors even as short-term traders capitalise on momentum. Liquidity remains robust, with the stock capable of handling trade sizes up to ₹2.07 crore based on 2% of the five-day average traded value, ensuring smooth execution of large orders without significant price impact.
Transformation in full progress! This Micro Cap from Auto Ancillary just achieved sustainable profitability after tough times. Be early to witness this powerful comeback story!
- - Sustainable profitability reached
- - Post-turnaround strength
- - Comeback story unfolding
Mojo Score and Analyst Ratings
Hindustan Petroleum currently holds a Mojo Score of 78.0, reflecting a strong buy recommendation, though this represents a slight downgrade from its previous “Strong Buy” grade as of 22 Dec 2025. The market cap grade is 2, categorising it as a mid-cap stock with solid fundamentals and growth prospects within the oil sector.
The downgrade suggests a cautious stance by analysts, possibly due to short-term volatility or sector headwinds, but the overall positive score and recent price resilience indicate sustained investor confidence. The stock’s ability to outperform its sector and the benchmark index on a day of broader market weakness further supports this view.
Sectoral and Market Context
The oil sector has experienced mixed performance recently, impacted by fluctuating crude prices and geopolitical uncertainties. Hindustan Petroleum’s relative outperformance and rising derivatives activity may signal a selective rotation into fundamentally sound oil stocks with attractive valuations and dividend yields.
Investors should note that while the derivatives market activity points to bullish positioning, the short-term technical indicators warrant monitoring for potential pullbacks or consolidation phases. The falling delivery volumes could imply that retail participation is subdued, with institutional players possibly driving the current momentum.
Hindustan Petroleum Corporation Ltd. caught your attention? Explore our comprehensive research report with in-depth analysis of this mid-cap Oil stock – fundamentals, valuations, financials, and technical outlook!
- - Comprehensive research report
- - In-depth mid-cap analysis
- - Valuation assessment included
Investor Takeaways and Outlook
For investors, the recent surge in open interest and volume in Hindustan Petroleum’s derivatives market is a clear signal of renewed interest and potential bullish bets. The stock’s proximity to its 52-week high, combined with strong dividend yield and solid technical positioning, makes it an attractive candidate for both momentum traders and income-focused investors.
However, the slight downgrade in Mojo Grade and the short-term price positioning below the 5-day moving average suggest that caution is warranted. Monitoring open interest trends, delivery volumes, and sectoral developments will be crucial to gauge the sustainability of the current momentum.
Overall, Hindustan Petroleum remains a key mid-cap player in the oil sector with robust market participation and favourable fundamentals, making it a stock to watch closely in the coming weeks.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
