Mankind Pharma Sees Sharp Open Interest Surge Amid Bearish Market Signals

Open Interest and Volume Dynamics

The open interest (OI) in Mankind Pharma’s futures and options contracts rose sharply from 17,362 to 22,010 contracts, an increase of 4,648 contracts or 26.77% on 4 February 2026. This surge in OI was accompanied by a volume of 30,952 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹16,845 lakhs, while the options segment’s notional value was substantially higher at ₹13,628.86 crores, underscoring the stock’s prominence in the derivatives market.

The total traded value in derivatives stood at ₹19,043 lakhs, reflecting strong liquidity and investor interest. Notably, the underlying stock price closed at ₹2,078, hovering just 1.6% above its 52-week low of ₹2,046.8, signalling persistent downward pressure.

Price Action and Moving Averages

Mankind Pharma’s share price declined by 3.22% on the day, underperforming the Pharmaceuticals & Biotechnology sector, which fell by 0.30%, and the Sensex, which was nearly flat with a marginal 0.02% drop. The stock touched an intraday low of ₹2,057.1, down 4.88% from the previous close, with the weighted average price skewed towards the lower end of the day’s range. This price behaviour suggests that sellers dominated trading, pushing prices closer to support levels.

Technically, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a sustained bearish trend. Such positioning often deters fresh buying and encourages short-term traders to adopt cautious or negative stances.

Investor Participation and Delivery Volumes

Investor participation has notably increased, with delivery volumes rising to 4.16 lakh shares on 3 February 2026, a 93.43% jump compared to the five-day average. This surge in delivery volume suggests that more investors are holding shares rather than trading intraday, possibly reflecting accumulation or capitulation at lower price levels. However, given the stock’s recent underperformance and downgrade in mojo grade from Hold to Sell on 19 November 2025, this participation may also represent forced selling or stop-loss triggers.

Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹1.97 crore based on 2% of the five-day average traded value, ensuring that institutional investors can transact without significant market impact.

Market Positioning and Directional Bets

The sharp rise in open interest alongside declining prices typically signals that fresh short positions are being established or existing shorts are being added to, reflecting bearish market sentiment. The fact that the stock is trading below all major moving averages and near its 52-week low reinforces this view. Traders appear to be positioning for further downside or at least a continuation of the current weak trend.

Options market data, with a notional value exceeding ₹13,628 crores, suggests significant hedging and speculative activity. The large open interest increase could be driven by put buying or call writing strategies, both of which are bearish or neutral-to-bearish in nature. This aligns with the downgrade in the mojo grade from Hold to Sell, which reflects deteriorating fundamentals or momentum as assessed by MarketsMOJO’s proprietary scoring system.

Investors should note that the company’s mojo score stands at 38.0, a relatively low figure that supports the Sell rating. The market cap grade is 1, indicating a large-cap status but with limited positive momentum. Such metrics are crucial for long-term investors assessing risk versus reward in the current environment.

Sector and Broader Market Context

Within the Pharmaceuticals & Biotechnology sector, Mankind Pharma’s underperformance by 3.29% relative to the sector’s 0.30% decline highlights company-specific challenges or negative sentiment. The sector itself is facing headwinds, but Mankind’s sharper fall and increased derivatives activity suggest that traders are particularly cautious about its near-term prospects.

Given the broader market’s near-flat performance, the stock’s weakness is more pronounced and may reflect concerns over earnings, regulatory developments, or competitive pressures. Investors should monitor upcoming quarterly results and sector news for confirmation of these trends.

Investor Takeaways and Outlook

The recent surge in open interest combined with declining prices and a downgrade in mojo grade signals caution for investors in Mankind Pharma Ltd. The derivatives market activity suggests that traders are positioning for further downside or increased volatility. While rising delivery volumes indicate heightened investor participation, the overall technical and fundamental indicators point to a bearish outlook in the near term.

Long-term investors should weigh the company’s large-cap status and sector fundamentals against the current negative momentum and consider alternative investment opportunities within the Pharmaceuticals & Biotechnology space. Monitoring upcoming earnings, regulatory updates, and sector trends will be critical to reassessing the stock’s prospects.

In summary, Mankind Pharma’s derivatives market activity and price action reflect a market consensus that the stock faces near-term challenges, with increased short interest and cautious positioning dominating investor behaviour.

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