Open Interest and Volume Dynamics
The open interest (OI) in LTI Mindtree’s derivatives jumped from 30,611 contracts to 38,099 contracts, an increase of 7,488 contracts on 12 Feb 2026. This 24.46% rise in OI is notable given the backdrop of a 5.34% decline in the stock price on the same day. The total volume traded stood at 68,520 contracts, indicating robust participation in the derivatives market. Futures value was recorded at ₹58,171.87 lakhs, while options value was substantially higher at ₹50,184.99 crores, reflecting a broad spectrum of derivative instruments being actively traded.
The underlying stock price closed near its intraday low of ₹5,203.5, down 5.66%, and traded below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a bearish technical setup. The weighted average price of traded contracts was closer to the low price, suggesting that sellers dominated the session.
Market Positioning and Directional Bets
The surge in open interest amid falling prices typically indicates that fresh short positions are being initiated or that existing shorts are being added to, reflecting bearish sentiment among derivatives traders. However, the simultaneous increase in volume and OI also suggests that some participants may be hedging or positioning for a potential rebound, given the stock’s large-cap status and sector fundamentals.
Interestingly, the IT - Software sector itself declined by 4.8% on the day, with LTI Mindtree underperforming the sector by 0.58%. The broader Sensex was relatively stable, down only 0.43%, highlighting that the stock’s weakness is more sector-specific or company-specific rather than market-wide.
Investor participation in the cash segment has diminished, with delivery volume falling by 23.22% compared to the 5-day average, indicating reduced conviction among long-term holders. This decline in delivery volume, combined with the derivatives activity, points to increased speculative trading and short-term positioning.
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Mojo Score and Rating Revision
LTI Mindtree currently holds a Mojo Score of 72.0 with a Mojo Grade of Buy, downgraded from a Strong Buy on 27 Jan 2026. This adjustment reflects a cautious stance amid recent price weakness and technical deterioration. The company’s market capitalisation stands at ₹1,56,267 crores, categorising it firmly as a large-cap stock with significant institutional interest.
The downgrade aligns with the stock’s underperformance over the past two days, where it has lost 7.68% cumulatively. The technical indicators, including the stock trading below all major moving averages, reinforce the near-term bearish outlook. However, the solid fundamentals and sector positioning continue to support a medium to long-term positive view.
Sector and Market Context
The Computers - Software & Consulting sector, to which LTI Mindtree belongs, has been under pressure with a 4.8% decline on the day. This sectoral weakness is driven by broader concerns over global IT spending and macroeconomic uncertainties. Despite this, LTI Mindtree’s liquidity remains robust, with the stock capable of handling trade sizes up to ₹3.28 crores based on 2% of the 5-day average traded value, ensuring smooth execution for institutional trades.
The combination of falling prices, rising open interest, and declining delivery volumes suggests that traders are increasingly adopting short-term bearish positions or hedging existing long exposure. This dynamic is critical for investors to monitor as it may signal further downside risk or a potential volatility spike in the near term.
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Implications for Investors
For investors, the sharp rise in open interest amid a declining price trend is a cautionary signal. It indicates that market participants are either increasing bearish bets or hedging against further downside. The stock’s technical weakness, reflected in its position below all major moving averages, suggests that momentum remains negative in the short term.
However, the company’s strong fundamentals and large-cap status provide a buffer against extreme volatility. Investors with a medium to long-term horizon may view current levels as an opportunity to accumulate selectively, especially if accompanied by stabilisation in sectoral trends and broader market sentiment.
Active traders and derivatives participants should closely monitor changes in open interest and volume patterns for signs of a potential reversal or continuation of the downtrend. The interplay between futures and options activity will be particularly telling in assessing market expectations and risk appetite.
Conclusion
LTI Mindtree Ltd’s recent surge in open interest amidst a falling stock price and sectoral weakness highlights a complex market environment where bearish sentiment is rising but fundamentals remain intact. The downgrade from Strong Buy to Buy by MarketsMOJO reflects this nuanced outlook. Investors should weigh the technical signals against the company’s solid fundamentals and sector positioning before making decisions.
Given the current liquidity and active derivatives market, LTI Mindtree remains a key stock to watch for directional cues in the IT software and consulting space. The evolving open interest and volume trends will provide valuable insights into market positioning and potential price trajectories in the coming sessions.
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