Mankind Pharma Sees Sharp Open Interest Surge Amid Bullish Derivatives Activity

Open Interest and Volume Dynamics

The latest data reveals that Mankind Pharma’s open interest (OI) in derivatives rose sharply by 2,314 contracts, a 17.73% increase from the previous figure of 13,048 to 15,362. This surge in OI is accompanied by a robust trading volume of 18,051 contracts, underscoring a strong participation in the futures and options market. The combined futures and options value stands at approximately ₹21,436.20 lakhs, with futures contributing ₹19,902.78 lakhs and options an overwhelming ₹7,426.21 crores, indicating substantial hedging and speculative activity.

The underlying stock price closed at ₹2,291, having touched an intraday high of ₹2,296.5, marking a 2.49% gain on the day. This price movement, coupled with the rising OI, suggests that market participants are positioning for further directional moves in the stock.

Market Positioning and Directional Bets

The increase in open interest alongside rising volumes typically signals fresh money entering the market, either through new long positions or short covering. Given Mankind Pharma’s consecutive two-day gain of 4.33%, it appears that bullish sentiment is gaining traction. The stock outperformed its sector by 1.69% and the broader Sensex by a significant margin, which declined by 0.41% on the same day, highlighting its relative strength.

Further supporting this bullish tilt is the rising delivery volume, which surged by 79.24% to 1.79 lakh shares on 6 January compared to the five-day average. This indicates that investors are not merely trading intraday but are increasingly taking delivery, reflecting confidence in the stock’s medium-term prospects.

However, it is important to note that Mankind Pharma’s Mojo Score currently stands at 44.0 with a Mojo Grade of Sell, downgraded from Hold on 19 November 2025. The market cap grade remains at 1, reflecting its large-cap status with a market capitalisation of ₹94,974.06 crores. This downgrade suggests caution, as fundamental or technical factors may be weighing on the stock despite the recent positive price action.

Technical Indicators and Moving Averages

From a technical standpoint, Mankind Pharma’s stock price is trading above its 5-day, 20-day, and 50-day moving averages, signalling short to medium-term strength. However, it remains below its 100-day and 200-day moving averages, indicating that longer-term momentum has yet to fully confirm a sustained uptrend. This mixed technical picture may explain the cautious stance reflected in the Mojo Grade downgrade.

The stock’s liquidity remains adequate for sizeable trades, with a 2% threshold of the five-day average traded value allowing for trade sizes up to ₹0.81 crore without significant market impact. This liquidity supports active participation by institutional and retail investors alike.

Implications for Investors and Traders

The sharp rise in open interest and volume, combined with the stock’s recent outperformance, suggests that market participants are increasingly optimistic about Mankind Pharma’s near-term prospects. The elevated delivery volumes reinforce this view, indicating genuine accumulation rather than speculative churning.

Nevertheless, the downgrade to a Sell rating by MarketsMOJO, with a Mojo Score of 44.0, signals underlying concerns that investors should not overlook. These may relate to valuation pressures, sector headwinds, or company-specific fundamentals that warrant close monitoring.

Traders should watch for further changes in open interest and price action to confirm the sustainability of the current rally. A continued rise in OI alongside price appreciation would strengthen the bullish case, while a divergence—such as rising OI with falling prices—could indicate short-building or profit-taking.

Sector and Market Context

The Pharmaceuticals & Biotechnology sector has shown modest gains recently, with Mankind Pharma outperforming the sector’s 0.53% one-day return by a significant margin. This relative strength is notable given the broader market’s negative performance, with the Sensex declining by 0.41% on the same day. Such divergence often attracts investor attention as a potential safe haven or growth opportunity within a volatile market environment.

However, investors should weigh this against the company’s current Mojo Grade Sell rating and the potential risks embedded in the sector, including regulatory challenges, pricing pressures, and competitive dynamics. The large-cap status of Mankind Pharma provides some cushion in terms of stability and liquidity but does not immunise it from sector-wide headwinds.

Conclusion

The recent surge in open interest and volume in Mankind Pharma’s derivatives market reflects a growing conviction among investors and traders about the stock’s upward potential. The accompanying price gains and rising delivery volumes reinforce this positive momentum. Yet, the downgrade in the Mojo Grade to Sell and the mixed technical signals counsel prudence.

Market participants should closely monitor ongoing changes in open interest, volume, and price action to gauge the durability of this trend. For investors, balancing the current bullish signals against fundamental and sector risks will be key to making informed decisions in the coming weeks.

Unlock special upgrade rates for a limited period. Start Saving Now →