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) rose from 12,857 contracts to 15,106 contracts, an increase of 2,249 contracts or 17.49% on 3 Feb 2026. This surge in OI was accompanied by a volume of 13,057 contracts, indicating robust trading activity in the futures and options market. The futures value stood at approximately ₹14,915.56 lakhs, while the options segment exhibited an enormous notional value of ₹5,087.74 crores, culminating in a total derivatives value of ₹15,860.57 lakhs for the day.

The underlying stock price closed at ₹2,169, marking a strong intraday high of ₹2,190.20, up 6.12% from the previous close. The stock opened with a gap-up of 3.4%, signalling bullish sentiment among traders and investors. This price action outpaced the Pharmaceuticals & Biotechnology sector, which gained 2.84%, and the Sensex, which rose 2.80% on the same day.

Market Positioning and Directional Bets

The sharp increase in open interest alongside rising volumes suggests that market participants are actively positioning themselves for a potential upward move in Mankind Pharma’s shares. The stock’s 1-day return of 5.33% notably outperformed the sector’s 2.83% and the Sensex’s 2.80%, reinforcing the bullish undertone in the derivatives market.

However, the technical setup presents a nuanced picture. The stock price currently trades above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This indicates that while short-term momentum is positive, medium- to long-term trends remain subdued, suggesting cautious optimism among traders.

Interestingly, delivery volumes have declined by 14.24% compared to the 5-day average, with only 1.97 lakh shares delivered on 2 Feb 2026. This drop in investor participation in the cash segment contrasts with the heightened activity in derivatives, implying that speculative interest is driving the recent price and volume movements rather than long-term accumulation.

Mojo Score and Analyst Ratings

Mankind Pharma currently holds a Mojo Score of 38.0, categorised as a 'Sell' grade by MarketsMOJO, downgraded from a 'Hold' on 19 Nov 2025. The downgrade reflects concerns over valuation and medium-term trend weakness despite recent short-term gains. The company’s market cap stands at ₹89,731.44 crores, placing it firmly in the large-cap segment of the Pharmaceuticals & Biotechnology sector.

The market cap grade is rated at 1, indicating limited upside potential relative to its size and sector peers. This rating aligns with the cautious stance suggested by the moving averages and declining delivery volumes, signalling that while derivatives traders are active, fundamental and institutional investors remain circumspect.

Sector and Market Context

The Pharmaceuticals & Biotechnology sector has gained 2.84% on the day, supported by positive sentiment around healthcare stocks amid ongoing industry developments. Mankind Pharma’s outperformance by 2.18% relative to its sector peers highlights its relative strength in the current market environment. However, the broader market context remains mixed, with the Sensex up 2.80%, reflecting a generally positive but volatile trading session.

Liquidity metrics indicate that Mankind Pharma is sufficiently liquid for sizeable trades, with the stock’s traded value supporting a trade size of approximately ₹1.56 crores based on 2% of the 5-day average traded value. This liquidity facilitates active participation by institutional and retail traders alike, particularly in the derivatives segment where the recent open interest surge was observed.

Implications for Investors and Traders

The pronounced increase in open interest and volume in Mankind Pharma’s derivatives suggests that traders are positioning for a potential upward breakout or sustained rally. The gap-up opening and intraday high of ₹2,190.20 reinforce this bullish sentiment. However, the divergence between derivatives activity and declining delivery volumes indicates that this momentum may be driven more by short-term speculative flows than by fundamental buying.

Investors should weigh the positive short-term momentum against the stock’s longer-term technical resistance levels, as indicated by its position below key moving averages. The downgrade to a 'Sell' grade by MarketsMOJO further advises caution, signalling that the stock may face headwinds despite recent gains.

For traders, the current environment offers opportunities to capitalise on volatility and directional bets in the derivatives market, but risk management remains paramount given the mixed signals from volume and price trends.

Conclusion

Mankind Pharma Ltd’s recent surge in open interest and volume in the derivatives market highlights a growing interest in the stock’s near-term prospects. The stock’s outperformance relative to its sector and the broader market, combined with a strong intraday price rally, points to bullish positioning by market participants. Nevertheless, the technical and fundamental indicators suggest a cautious approach, as medium- and long-term trends remain under pressure and delivery volumes decline.

Investors and traders should monitor developments closely, balancing the potential for short-term gains against the risks posed by the stock’s current valuation and trend profile. The evolving derivatives activity will be a key barometer of market sentiment in the coming sessions.

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