Open Interest and Volume Dynamics
On 3 February 2026, KEI Industries recorded an open interest (OI) of 13,864 contracts in its futures and options, marking a substantial increase of 1,962 contracts or 16.48% compared to the previous OI of 11,902. This rise in OI is accompanied by a futures volume of 13,079 contracts, indicating active participation from traders and investors. The combined futures and options value stands at approximately ₹27,447.27 lakhs, with futures contributing ₹25,684.93 lakhs and options an overwhelming ₹7,592.14 crores, underscoring the stock’s liquidity and interest among derivatives players.
The underlying stock price has also demonstrated strong momentum, opening with a gap up of 5.4% and touching an intraday high of ₹4,560, a gain of 11.77% on the day. KEI Industries has outperformed its sector by 1.8% and the broader Sensex by 3.06%, with a one-day return of 5.89% against the sector’s 4.17% and Sensex’s 2.83%. The stock has been on a two-day consecutive gain streak, delivering a cumulative return of 9.04% during this period.
Market Positioning and Technical Indicators
KEI Industries is currently trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend. The weighted average price suggests that more volume has been traded closer to the lower price range of the day, which may indicate accumulation by institutional investors or traders anticipating further upside. Despite a slight decline in delivery volume by 3.67% to 1.89 lakh shares on 2 February, the stock’s liquidity remains robust, with a trade size capacity of ₹2.49 crore based on 2% of the five-day average traded value.
The increase in open interest alongside rising prices typically points to fresh long positions being established, reflecting bullish sentiment. This is further supported by the stock’s Mojo Score of 72.0 and an upgraded Mojo Grade from Hold to Buy as of 29 January 2026, signalling improved fundamentals and positive market outlook. The company’s market capitalisation stands at ₹42,876 crore, categorising it as a mid-cap stock with solid growth prospects in the cables and electricals sector.
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Implications of the Open Interest Surge
The 16.48% increase in open interest is a clear indication that market participants are positioning themselves for a sustained move in KEI Industries’ stock price. Given the concurrent price appreciation and volume expansion, the surge in OI suggests that fresh long positions are being built rather than short covering. This is a positive signal for investors looking for momentum plays in the mid-cap segment of the electrical cables industry.
Moreover, the options market value, which dwarfs the futures segment, points to active hedging and speculative activity. The substantial options premium indicates that traders are willing to pay for protection or leverage, reflecting expectations of continued volatility and directional movement. The underlying value of ₹4,341 further supports the stock’s strong market presence and investor interest.
Sectoral and Broader Market Context
The cables and electricals sector has gained 4.4% recently, with KEI Industries outperforming this benchmark. This outperformance is noteworthy given the sector’s cyclical nature and sensitivity to infrastructure and industrial demand. KEI’s ability to sustain gains above key moving averages and maintain high liquidity levels positions it favourably against peers.
Investor participation, while showing a slight dip in delivery volumes, remains healthy enough to support the current price trajectory. The stock’s mid-cap status and market cap grade of 2 reflect a balance between growth potential and risk, making it an attractive candidate for investors seeking exposure to the infrastructure-linked electricals space.
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Outlook and Investor Considerations
KEI Industries’ recent upgrade to a Buy rating by MarketsMOJO, supported by a Mojo Score of 72.0, reflects a positive shift in the company’s fundamentals and market sentiment. Investors should note the strong technical setup, with the stock trading comfortably above all major moving averages and demonstrating consistent volume support.
The surge in open interest and volume in derivatives markets suggests that institutional and retail traders alike are positioning for further upside. However, investors should remain vigilant of potential volatility, as the large options premium indicates expectations of price swings. Monitoring delivery volumes and sectoral trends will be crucial to gauge sustained investor participation.
Given the stock’s mid-cap classification and market cap of ₹42,876 crore, KEI Industries offers a compelling blend of growth and liquidity. The cables and electricals sector’s ongoing recovery and infrastructure demand tailwinds provide a supportive backdrop for the company’s prospects.
In summary, the sharp increase in open interest combined with strong price performance and upgraded fundamental ratings positions KEI Industries as a stock to watch closely in the near term. Investors seeking exposure to the electrical cables sector may find KEI’s current momentum and market positioning favourable for tactical and strategic allocations.
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