Key Events This Week
29 Dec: Significant open interest surge amid mixed price action
30 Dec: Robust call option activity signals bullish sentiment
1 Jan: High-value trading and strong institutional interest
2 Jan: New 52-week and all-time high at Rs.3,801
29 December 2025: Open Interest Surge Amid Mixed Price Action
On the first trading day of the week, Mahindra & Mahindra Ltd experienced a notable 12.36% increase in open interest in its derivatives segment, rising from 1,32,401 to 1,48,765 contracts. Despite this surge, the stock price declined by 0.81% to close at Rs.3,591.70, underperforming the Sensex’s 0.41% fall. This divergence suggested active repositioning by traders, possibly anticipating volatility or hedging strategies.
Technically, the stock remained above its 100-day and 200-day moving averages, indicating a longer-term bullish trend, though it traded below shorter-term averages, signalling short-term consolidation. Delivery volumes declined by 34.78%, reflecting cautious investor participation. The total derivatives market value stood at approximately ₹2,01,192 lakhs, highlighting significant market engagement despite the price softness.
30 December 2025: Bullish Call Option Activity and Price Recovery
Mahindra & Mahindra Ltd rebounded strongly on 30 December, gaining 2.00% to close at Rs.3,663.50, outperforming the Sensex which was nearly flat (-0.01%). The stock’s recovery was supported by robust call option activity, particularly at strike prices of Rs.3,650 and Rs.3,700, with over 17,600 contracts traded combined and significant turnover exceeding ₹259 lakhs. Open interest at these strikes indicated strong bullish positioning near the stock’s price level of Rs.3,643.30.
This bullish sentiment was further reinforced by the stock trading above its 5-day, 50-day, 100-day, and 200-day moving averages, though it remained slightly below the 20-day average. Delivery volumes fell modestly by 8.63%, but liquidity remained strong, supporting sizeable trades. The stock’s mojo grade upgrade to Buy with a score of 71.0 underpinned improving fundamentals and market confidence.
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1 January 2026: High-Value Trading and Institutional Interest
The first trading day of the new year saw Mahindra & Mahindra Ltd emerge as one of the most actively traded stocks by value, with a turnover exceeding ₹124 crore on a volume of 3,30,915 shares. The stock gained 1.40% to close at Rs.3,761.70, outperforming the automobile sector’s 0.77% gain and the Sensex’s 0.14% rise.
Institutional participation intensified, with delivery volumes surging 57.66% to 12.46 lakh shares on 31 December, signalling strong conviction among long-term holders. The stock traded above all key moving averages, confirming a robust uptrend. The mojo grade upgrade to Buy and a mojo score of 71.0 further reflected improving fundamentals and positive market dynamics.
Call option activity remained elevated, with significant volumes at strike prices of Rs.3,750 and Rs.3,800 for the 27 January expiry, generating turnovers exceeding ₹156 crores. Open interest at these strikes indicated strong bullish sentiment, with traders positioning for further upside.
2 January 2026: New 52-Week and All-Time High at Rs.3,801
Mahindra & Mahindra Ltd reached a new 52-week and all-time high of Rs.3,801 on 2 January, closing at Rs.3,801.80 and marking a 1.07% gain on the day. This milestone capped a four-day consecutive gain streak, delivering a total return of 5.3% over this period. The stock outperformed the Sensex’s 0.81% rise and traded comfortably above all major moving averages.
Trading activity remained robust, with a traded volume of 6,85,277 shares and a value of ₹260.02 crore. Despite a 32.38% decline in delivery volumes on 1 January, liquidity remained strong, supporting large institutional trades. Call option volumes surged at the Rs.3,800 strike for the January expiry, with over 6,100 contracts traded and open interest exceeding 3,000 contracts, signalling expectations of sustained bullish momentum.
Financially, the company’s strong fundamentals underpin this rally, with net sales growing at 15.61% annually, operating profit expanding by 32.29%, and a return on capital employed of 15.5%. Institutional holdings remain high at 68.08%, reflecting confidence from major investors. The mojo grade upgrade to Buy and a mojo score of 71.0 highlight the stock’s improving quality and market standing.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.3,591.70 | -0.81% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.3,663.50 | +2.00% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.3,709.60 | +1.26% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.3,761.70 | +1.40% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.3,801.80 | +1.07% | 37,799.57 | +0.81% |
Key Takeaways
Positive Signals: The stock’s 4.99% weekly gain significantly outpaced the Sensex’s 1.35%, supported by strong derivatives market activity, including surges in open interest and call option volumes. Institutional interest intensified, as reflected in rising delivery volumes and high traded values, signalling confidence in M&M’s fundamentals and growth prospects. The attainment of new 52-week and all-time highs confirms robust technical momentum, with the stock trading above all key moving averages.
Cautionary Notes: Despite strong price gains, delivery volumes showed intermittent declines, suggesting some profit-booking or cautious positioning by long-term investors. The stock’s short-term trading below certain moving averages earlier in the week indicated consolidation phases. Elevated option market activity near expiry dates may introduce volatility, requiring close monitoring of price action around key strike prices.
Conclusion
Mahindra & Mahindra Ltd’s performance over the week ending 2 January 2026 highlights a compelling combination of strong fundamentals, technical strength, and active market participation. The stock’s 4.99% gain, driven by robust derivatives activity and institutional interest, underscores its leadership within the automobile sector. The new 52-week and all-time high at Rs.3,801 reflects sustained investor confidence and positive momentum heading into the new year.
While some caution is warranted due to fluctuating delivery volumes and potential volatility around options expiry, the overall outlook remains constructive. Investors and market participants should continue to monitor open interest trends, price movements relative to moving averages, and sectoral developments to gauge the sustainability of this rally. Mahindra & Mahindra Ltd’s upgraded mojo grade and strong market positioning make it a key stock to watch in the evolving automobile market landscape.
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