Open Interest and Volume Dynamics
On 26 Feb 2026, Mankind Pharma’s open interest in futures and options contracts rose sharply to 19,580 from the previous 14,470, marking an increase of 5,110 contracts or 35.31%. This surge in OI was accompanied by a robust trading volume of 58,279 contracts, reflecting active participation from both institutional and retail investors. The futures value stood at approximately ₹31,023 lakhs, while the options segment contributed a staggering ₹27,362.9 crores in notional value, culminating in a total derivatives market value of ₹37,695.8 lakhs.
The underlying stock price closed at ₹2,239, having touched an intraday high of ₹2,273, up 5.44% on the day. This price action, combined with rising OI, typically indicates fresh long positions being established rather than short covering, pointing to a bullish market stance.
Price Performance and Technical Positioning
Mankind Pharma has outperformed its Pharmaceuticals & Biotechnology sector by 3.89% on the day, while the sector itself posted a modest gain of 0.14%. The stock has been on a four-day winning streak, delivering cumulative returns of 10.75% during this period. Notably, the stock’s price remains above its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term strength. However, it still trades below the 200-day moving average, indicating some longer-term resistance remains to be overcome.
Investor participation has also intensified, with delivery volumes on 25 Feb rising to 4.39 lakh shares, a 122.06% increase compared to the five-day average. This surge in delivery volume underscores genuine accumulation rather than speculative trading, reinforcing the bullish narrative.
Market Capitalisation and Mojo Score Insights
With a market capitalisation of ₹90,487 crore, Mankind Pharma is classified as a mid-cap stock within the Pharmaceuticals & Biotechnology sector. Despite the recent positive price momentum, the company’s MarketsMOJO score currently stands at 44.0, with a Mojo Grade of Sell, downgraded from Hold on 19 Nov 2025. The downgrade reflects concerns over valuation metrics and relative strength compared to sector peers, suggesting cautious optimism among analysts.
The Market Cap Grade is rated 2, indicating moderate market capitalisation strength but room for improvement in liquidity and institutional interest. The stock’s liquidity profile supports trade sizes up to ₹1.88 crore based on 2% of the five-day average traded value, making it accessible for sizeable institutional trades without significant market impact.
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Interpreting the Open Interest Surge: Directional Bets and Market Positioning
The 35.3% increase in open interest, coupled with rising volumes and price appreciation, suggests that market participants are establishing fresh long positions in anticipation of further upside. This is consistent with the stock’s recent four-day rally and outperformance relative to the sector and benchmark indices.
Open interest growth in derivatives often signals increased hedging activity or speculative directional bets. In Mankind Pharma’s case, the magnitude of the OI rise alongside strong volume and delivery participation points to genuine bullish sentiment rather than short covering or unwinding of positions.
Moreover, the futures and options market values indicate substantial capital allocation towards this stock, with options notional value exceeding ₹27,362 crores. This suggests that traders are actively using options strategies, possibly including call buying or bull spreads, to capitalise on expected upward price movement while managing risk.
Sector and Market Context
The Pharmaceuticals & Biotechnology sector has been relatively subdued, with the sector index posting only marginal gains. Mankind Pharma’s ability to outperform by nearly 4% on the day highlights its relative strength and potential to lead sectoral rallies. However, the stock’s Mojo Grade downgrade to Sell signals that investors should remain vigilant about valuation risks and monitor broader sector trends.
Sensex closed marginally lower by 0.10%, underscoring the stock’s resilience amid a mixed market environment. This divergence further emphasises the stock-specific factors driving Mankind Pharma’s recent momentum.
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Investor Takeaway and Outlook
Investors should note the strong open interest build-up in Mankind Pharma’s derivatives as a sign of growing conviction in the stock’s near-term upside potential. The combination of rising price, volume, and delivery participation supports a bullish technical setup. However, the Mojo Grade downgrade and valuation concerns warrant a cautious approach, especially for new entrants.
Traders looking to capitalise on the momentum may consider derivative strategies aligned with the bullish bias, such as long futures or call options, while maintaining risk controls given the stock’s mid-cap status and sector volatility. Long-term investors should monitor quarterly earnings and sector developments to validate the sustainability of the current rally.
Overall, Mankind Pharma’s recent open interest surge reflects a market positioning shift towards optimism, supported by solid price action and liquidity. The stock remains a key name to watch within the Pharmaceuticals & Biotechnology space as it navigates technical resistance and fundamental challenges.
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