Open Interest and Volume Dynamics
On 3 February 2026, KEI Industries Ltd recorded an open interest (OI) of 14,565 contracts in its derivatives, marking a substantial increase of 2,663 contracts or 22.37% compared to the previous OI of 11,902. This sharp rise in OI, coupled with a daily volume of 20,243 contracts, indicates a strong influx of fresh positions rather than mere rollovers or squaring off of existing trades.
The futures segment alone accounted for a value of approximately ₹40,346.8 lakhs, while the options segment's notional value was significantly higher at ₹11,622.06 crores, culminating in a total derivatives value of ₹42,870.5 lakhs. Such elevated activity underscores the growing interest among traders and institutional participants in KEI’s price trajectory.
Price Performance and Market Context
KEI Industries outperformed its sector peers by 2.27% on the day, registering a 6.89% gain, which was notably higher than the Cable sector’s 4.4% rise and the Sensex’s 2.64% advance. The stock opened with a gap-up of 5.4%, reaching an intraday high of ₹4,560, a robust 11.77% increase from its previous close. This price strength, supported by the surge in open interest, suggests that market participants are positioning for further upside.
Moreover, KEI is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend across multiple timeframes. The weighted average price indicates that more volume was traded closer to the low price of the day, hinting at accumulation during dips rather than speculative spikes.
Investor Participation and Liquidity Considerations
Despite the strong price and derivatives activity, delivery volumes have seen a slight decline, with a 3.67% drop against the 5-day average, registering 1.89 lakh shares delivered on 2 February. This suggests that while short-term trading interest is high, longer-term investor participation remains cautious or consolidating.
Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of approximately ₹2.49 crores based on 2% of the 5-day average traded value. This ensures that institutional investors can enter or exit positions without significant market impact.
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Market Positioning and Directional Bets
The pronounced increase in open interest alongside rising prices typically signals fresh bullish bets by market participants. Traders appear to be accumulating long futures and call options, anticipating further appreciation in KEI’s share price. The stock’s mojo score of 72.0 and an upgraded mojo grade from Hold to Buy on 29 January 2026 further reinforce this positive outlook.
KEI’s market capitalisation stands at ₹42,876 crores, categorising it as a mid-cap stock with solid fundamentals and growth prospects in the cables and electricals sector. The sector itself has been gaining momentum, with a 4.4% rise, supported by infrastructure development and increased industrial demand.
Technical indicators corroborate the bullish sentiment, with KEI trading above all major moving averages and showing strong relative strength compared to the sector and benchmark indices. The stock’s consecutive two-day gain of 9.7% returns highlights sustained buying interest.
Risks and Considerations
While the derivatives data and price action point to a positive near-term outlook, investors should remain mindful of the falling delivery volumes, which may indicate some hesitation among long-term holders. Additionally, the weighted average price clustering near the day’s low suggests that some profit-taking or cautious accumulation is underway.
Market volatility and sector-specific risks, such as raw material price fluctuations and regulatory changes, could impact KEI’s performance. Therefore, investors should monitor open interest trends and volume patterns closely to gauge evolving market sentiment.
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Outlook and Investment Implications
Given the strong open interest growth, rising volumes, and positive price momentum, KEI Industries Ltd is positioned favourably for further gains in the near term. The upgrade to a Buy mojo grade reflects improved fundamentals and technical strength, making it an attractive option for investors seeking exposure to the cables and electricals sector.
Investors should consider the stock’s liquidity and market cap grade of 2, which supports active trading and institutional participation. Monitoring derivatives activity will remain crucial to assess whether the current bullish positioning sustains or if profit-taking emerges.
Overall, KEI’s recent market behaviour suggests a constructive outlook, supported by sector tailwinds and robust investor interest, making it a compelling candidate for inclusion in mid-cap focused portfolios.
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