Open Interest and Volume Dynamics
The latest data reveals that LT’s open interest expanded from 193,584 contracts to 218,359 contracts, an increase of 24,775 contracts. This 12.8% jump in OI was accompanied by a futures volume of 2,25,054 contracts, underscoring heightened trading activity. The total futures value stood at ₹3,19,904.76 lakhs, while options value was substantially higher at ₹1,39,568.10 crores, indicating significant options market engagement alongside futures.
Such a surge in open interest, coupled with elevated volume, typically suggests fresh positions being established rather than existing ones being squared off. This pattern often points to strong conviction among traders, either in anticipation of continued price appreciation or hedging against volatility.
Price Performance and Moving Averages
On the price front, LT’s stock advanced by 2.47% on the day, outperforming the Sensex’s modest 0.62% gain and closely tracking the capital goods sector’s 2.39% rise. The stock’s intraday high of ₹4,383.4 marks a fresh peak, reinforcing bullish momentum. Notably, LT is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — a technical indicator of sustained upward trend and strong market sentiment.
Investor participation is also on the rise, with delivery volumes reaching 15.99 lakh shares on 19 Feb, an 11.12% increase over the five-day average. This suggests that long-term investors are accumulating shares, further supporting the bullish narrative.
Sectoral Context and Market Capitalisation
LT operates within the construction industry, a sector currently benefiting from increased infrastructure spending and government initiatives. The company’s large-cap status, with a market capitalisation of ₹6,03,068.09 crores, positions it as a bellwether for the sector. Its mojo score of 75.0 and recent upgrade from Hold to Buy on 17 Feb 2026 reflect improved fundamentals and positive outlook from market analysts.
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Market Positioning and Directional Bets
The sharp increase in open interest and volume suggests that market participants are positioning for a sustained upward move in LT’s share price. The futures and options market activity indicates a blend of directional bullish bets and hedging strategies. The substantial options value points to active call option buying, which typically reflects expectations of further price appreciation.
Moreover, the stock’s liquidity, with a trade size capacity of approximately ₹18.11 crores based on 2% of the five-day average traded value, ensures that institutional investors can enter or exit positions without significant price impact. This liquidity is crucial for maintaining orderly price discovery amid rising volumes.
Technical and Fundamental Outlook
From a technical perspective, LT’s price action above all major moving averages and the breakout to new highs signal strong momentum. The upgrade in mojo grade from Hold to Buy, accompanied by a mojo score of 75.0, reflects improved financial metrics and positive analyst sentiment. The company’s robust market cap grade of 1 further underscores its quality and stability within the large-cap universe.
Fundamentally, LT benefits from a diversified order book, strong execution capabilities, and exposure to key infrastructure projects. The construction sector’s tailwinds, including government spending and private sector investments, provide a favourable backdrop for sustained growth.
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Implications for Investors
For investors, the surge in open interest and volume in LT’s derivatives market signals a strong conviction in the stock’s upward trajectory. The combination of technical strength, improved mojo ratings, and sectoral tailwinds makes LT an attractive proposition for both short-term traders and long-term investors.
However, investors should remain mindful of broader market volatility and geopolitical factors that could impact the construction sector. Monitoring open interest trends alongside price action will be crucial to gauge the sustainability of the current rally.
Conclusion
Larsen & Toubro Ltd.’s recent open interest surge and record-high price levels underscore a bullish market stance supported by strong fundamentals and technical momentum. The company’s upgraded mojo grade to Buy and robust market cap reinforce its position as a leading large-cap stock in the construction sector. As investor participation intensifies, LT remains a key stock to watch for those seeking exposure to India’s infrastructure growth story.
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