Open Interest and Volume Dynamics
On 3 February 2026, KEI Industries recorded an open interest of 14,081 contracts in its derivatives, marking an 18.31% increase from the previous day's 11,902 contracts. This rise of 2,179 contracts is substantial, indicating fresh positions being established rather than mere rollovers. The volume for the day stood at 17,213 contracts, reflecting active trading interest and liquidity in the futures and options segments.
The combined futures and options value traded amounted to approximately ₹37,186.5 lakhs, with futures contributing ₹34,994.3 lakhs and options an overwhelming ₹9,816.1 crores in notional value. Such elevated turnover underscores the heightened market focus on KEI’s price trajectory.
Price Action and Moving Averages
KEI Industries outperformed its sector peers and the broader market on the day, registering a 5.38% gain compared to the Cable sector’s 4.39% and Sensex’s 2.80%. The stock opened with a gap-up of 5.4% and touched an intraday high of ₹4,560, representing an 11.77% rise from its previous close. Notably, the weighted average price traded was closer to the day’s low, suggesting some profit booking near the highs but sustained buying interest overall.
Technically, KEI is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong uptrend and positive momentum. This technical strength aligns with the surge in open interest, reinforcing the bullish narrative.
Market Positioning and Directional Bets
The sharp increase in open interest alongside rising prices typically indicates fresh long positions being built by market participants, reflecting confidence in further upside potential. The 18.31% jump in OI, coupled with a 5.38% price gain, suggests that traders are not merely covering shorts but actively betting on a sustained rally.
Interestingly, despite the strong price gains, delivery volumes have declined by 3.67% against the 5-day average, with 1.89 lakh shares delivered on 2 February. This divergence points to speculative trading dominating the recent price action rather than long-term accumulation by investors. Such a pattern is common in derivative-driven rallies where short-term traders seek to capitalise on momentum.
Sector and Market Context
The Cables - Electricals sector has been gaining traction, with the sector index rising 4.39% on the day. KEI’s outperformance by 0.82% relative to its sector peers highlights its leadership position within the industry. The company’s market capitalisation stands at ₹42,876 crores, categorising it as a mid-cap stock with sufficient liquidity to support sizeable trades, as evidenced by the 2% average traded value threshold allowing trade sizes up to ₹2.49 crores.
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Mojo Score Upgrade and Analyst Sentiment
Reflecting the positive momentum, KEI Industries’ Mojo Score has improved to 72.0, earning a Buy grade from MarketsMOJO, upgraded from a previous Hold rating on 29 January 2026. This upgrade signals enhanced confidence in the company’s fundamentals and technical outlook. The Mojo Grade upgrade is supported by the stock’s consistent gains over the past two days, delivering an 8.07% return during this period.
Such a rating upgrade often attracts institutional interest and can further fuel price appreciation, especially when combined with strong derivative market activity.
Implications for Investors and Traders
For investors, the surge in open interest and accompanying price strength suggest that KEI Industries is currently favoured by market participants as a growth-oriented mid-cap stock within the electrical cables sector. The technical indicators and volume patterns support a bullish outlook, although the decline in delivery volumes warrants caution, indicating that the rally may be driven more by short-term traders than long-term holders.
Traders may consider this an opportune moment to participate in KEI’s momentum, especially given the stock’s liquidity and active derivatives market. However, prudent risk management is advised given the speculative nature of the recent surge.
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Outlook and Conclusion
KEI Industries Ltd’s recent surge in open interest and volume, combined with strong price performance and a Mojo Score upgrade, paints a compelling picture of bullish market positioning. The stock’s leadership within the cables sector and mid-cap status provide a solid foundation for sustained investor interest.
While the derivative market activity suggests directional bets favouring an upside move, investors should remain mindful of the speculative elements and monitor delivery volumes and broader sector trends. Continued outperformance relative to the sector and Sensex will be key to confirming the durability of this rally.
Overall, KEI Industries appears well poised for further gains, supported by both fundamental upgrades and technical momentum, making it a stock to watch closely in the coming weeks.
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