Open Interest and Volume Dynamics
On 10 Feb 2026, Lupin’s open interest in derivatives rose sharply by 3,003 contracts, a 10.71% increase from the previous day’s 28,037 to 31,040. This uptick in OI was accompanied by a futures volume of 23,335 contracts, reflecting heightened trading activity. The combined futures and options value stood at approximately ₹5,45,10.57 lakhs, with futures contributing ₹51,008.12 lakhs and options an overwhelming ₹17,454.83 crores, underscoring the substantial liquidity and interest in the stock’s derivatives.
The underlying stock price closed at ₹2,207, just 2.02% shy of its 52-week high of ₹2,244.5, reinforcing the bullish undertone. Lupin has gained 1.21% over the past two consecutive sessions, outperforming its sector which declined by 0.11% on the same day, while the Sensex rose modestly by 0.16%. This relative strength is further supported by Lupin trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained upward momentum.
Investor Participation and Liquidity Considerations
Despite the positive price and volume trends, delivery volumes have shown a decline, with 3.56 lakh shares delivered on 09 Feb, down 25.94% from the 5-day average. This suggests that while short-term trading interest is robust, longer-term investor participation may be moderating. Nevertheless, the stock remains sufficiently liquid, with a trade size capacity of ₹4.12 crores based on 2% of the 5-day average traded value, ensuring ease of execution for institutional and retail investors alike.
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Market Positioning and Directional Bets
The surge in open interest alongside rising volumes typically indicates fresh positions being established rather than existing ones being squared off. In Lupin’s case, the 10.71% increase in OI suggests that traders are building new exposure, potentially anticipating further upside. The stock’s mojo score of 74.0, graded as a Buy (downgraded from Strong Buy on 28 Jan 2026), reflects a strong fundamental and technical outlook, albeit with a slight moderation in conviction.
Options market data, with an options value exceeding ₹17,454 crores, points to significant hedging and speculative activity. The concentration of open interest near current strike prices could imply that market participants are positioning for a breakout or sustained rally, while also managing downside risk. This is consistent with Lupin’s status as a mid-cap pharmaceutical stock with robust growth prospects amid evolving healthcare demands.
Sectoral and Broader Market Context
Lupin operates within the Pharmaceuticals & Biotechnology sector, which has shown resilience despite broader market volatility. The company’s market capitalisation stands at ₹1,01,849 crores, categorising it as a mid-cap stock with considerable institutional interest. Lupin’s recent performance, trading above all major moving averages and near its 52-week high, contrasts favourably with sector peers, many of which have struggled to maintain momentum.
However, the decline in delivery volumes signals a cautious approach by long-term investors, possibly awaiting clearer signals from upcoming earnings or regulatory developments. The stock’s day-on-day price change of 0.15% is modest but positive, aligning with the overall market’s slight upward bias.
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Implications for Investors
The recent open interest surge in Lupin’s derivatives market, coupled with positive price action and strong mojo metrics, suggests that investors are increasingly optimistic about the stock’s near-term prospects. The shift from a Strong Buy to a Buy rating on 28 Jan 2026 indicates a slight tempering of expectations but still reflects confidence in Lupin’s fundamentals and growth trajectory.
Investors should monitor the evolving open interest and volume patterns closely, as sustained increases may confirm a directional trend. The stock’s proximity to its 52-week high and its outperformance relative to the sector and Sensex provide additional validation for bullish positioning. However, the decline in delivery volumes warrants caution, signalling that some investors may be adopting a wait-and-watch stance.
Given Lupin’s liquidity profile and active derivatives market, it remains an attractive candidate for both long-term investors and traders seeking to capitalise on momentum and volatility. The pharmaceutical sector’s ongoing innovation and regulatory developments could further catalyse Lupin’s price action in the coming weeks.
Conclusion
Lupin Ltd.’s recent open interest surge in derivatives is a clear indicator of heightened market interest and potential directional bets. Supported by strong volume, positive price momentum, and a solid mojo score, the stock is positioned favourably within the Pharmaceuticals & Biotechnology sector. While some caution is warranted due to falling delivery volumes, the overall technical and fundamental signals suggest that Lupin remains a compelling mid-cap stock for investors seeking exposure to healthcare innovation and growth.
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