Open Interest and Volume Dynamics
On 3 February 2026, KEI Industries recorded an open interest (OI) of 14,482 contracts in its derivatives, marking a substantial increase of 2,580 contracts or 21.68% compared to the previous OI of 11,902. This sharp rise in OI is accompanied by a robust trading volume of 18,961 contracts, indicating strong participation from market participants. The futures segment alone accounted for a value of approximately ₹38,065.48 lakhs, while the options segment’s notional value soared to ₹10,851.47 crores, culminating in a total derivatives value of ₹40,435.59 lakhs.
The underlying stock price closed at ₹4,323, having outperformed its sector by 1.51% and the broader Sensex by a notable margin. KEI Industries has been on a two-day winning streak, delivering an 8.82% return over this period, with a day-on-day gain of 6.89%. The stock opened with a gap-up of 5.4% and touched an intraday high of ₹4,560, representing an 11.77% rise from the previous close. Despite the strong price action, the weighted average price suggests that a significant volume traded closer to the lower price levels, hinting at some profit-booking or cautious accumulation.
Market Positioning and Directional Bets
The surge in open interest alongside rising prices typically signals fresh long positions being established, reflecting bullish market sentiment. Traders appear to be betting on continued upward momentum in KEI Industries, supported by the stock trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – which reinforces the positive technical outlook.
However, the delivery volume on 2 February stood at 1.89 lakh shares, down by 3.67% against the five-day average delivery volume, indicating a slight dip in investor participation at the delivery level. This divergence between derivatives activity and delivery volumes may suggest that short-term traders and institutional participants are driving the recent momentum rather than retail investors holding for the long term.
KEI Industries operates in the cables and electricals sector, which has gained 4.37% recently, underscoring sectoral tailwinds. The company’s market capitalisation stands at ₹42,876 crore, categorising it as a mid-cap stock with sufficient liquidity to support sizeable trades, with an average daily traded value allowing for trade sizes up to ₹2.49 crore without significant market impact.
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Mojo Score Upgrade and Analyst Sentiment
KEI Industries’ recent performance and market activity have been reflected in its MarketsMOJO rating upgrade. The company’s Mojo Score currently stands at 72.0, with a Mojo Grade upgraded from Hold to Buy as of 29 January 2026. This upgrade signals improved fundamentals and technical strength, encouraging investors to consider KEI as a favourable mid-cap opportunity within the cables and electricals sector.
The stock’s day-on-day return of 5.99% outpaces the sector’s 4.31% and the Sensex’s 2.80%, highlighting its relative strength. The market cap grade remains at 2, indicating a mid-cap classification with moderate liquidity and growth potential. The upgrade in rating is supported by the company’s consistent price gains, positive volume trends, and expanding open interest, which collectively suggest sustained investor confidence.
Technical and Fundamental Outlook
From a technical perspective, KEI Industries’ price action above all major moving averages confirms a strong uptrend. The gap-up opening and intraday high near ₹4,560 demonstrate robust buying interest. The increase in open interest by over 21% in a single session is a key indicator that fresh capital is flowing into the stock’s derivatives, often a precursor to continued price appreciation.
Fundamentally, KEI’s position in the cables and electricals industry benefits from ongoing infrastructure development and electrification initiatives across India. The sector’s recent 4.37% gain reflects improving demand dynamics, which could further support KEI’s growth trajectory. The company’s sizeable market capitalisation and liquidity profile make it an attractive option for institutional investors seeking exposure to mid-cap growth stocks.
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Investor Considerations and Risks
While the surge in open interest and price gains are encouraging, investors should remain mindful of potential volatility. The weighted average price data indicates some volume concentration near lower price points, which may reflect profit-taking or cautious positioning. Additionally, the slight decline in delivery volumes suggests that long-term investor conviction may not yet be fully established.
Market participants should also consider broader macroeconomic factors and sector-specific developments that could influence KEI’s performance. Given the mid-cap status, the stock may experience sharper price swings compared to large-cap peers, necessitating careful risk management.
Conclusion
KEI Industries Ltd’s recent open interest surge in derivatives, combined with strong volume and price action, signals a bullish market stance among traders. The upgrade in Mojo Grade to Buy and the stock’s outperformance relative to its sector and the Sensex reinforce the positive outlook. While some caution is warranted due to delivery volume trends and volume-price dynamics, the overall technical and fundamental indicators suggest that KEI is well positioned for further gains in the near term.
Investors seeking exposure to the cables and electricals sector may find KEI Industries an attractive candidate, supported by robust market positioning and favourable industry tailwinds.
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