Marico Ltd Sees Sharp Open Interest Surge Amid Mixed Market Signals

Open Interest and Volume Dynamics

The latest data reveals that Marico's open interest rose sharply from 33,227 contracts to 40,221 contracts, an increase of 6,994 contracts. This 21.05% jump in OI was accompanied by a futures volume of 27,052 contracts, indicating robust participation in the derivatives market. The futures value stood at ₹1,26,375.25 lakhs, while the options segment contributed a substantial ₹13,09,558.11 lakhs, culminating in a total derivatives value of approximately ₹1,26,993.36 lakhs. Such elevated activity underscores a growing interest in Marico’s price movements among institutional and retail traders alike.

Price Movement and Technical Context

On the price front, Marico hit a new 52-week and all-time high of ₹800 during the trading session, a milestone that often attracts profit-booking and fresh speculative interest. However, the stock closed lower by 1.67%, touching an intraday low of ₹778.25, down 2.22% from the peak. This decline came after three consecutive days of gains, suggesting a short-term trend reversal or consolidation phase.

Technically, Marico remains in a strong uptrend, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This alignment of moving averages typically signals sustained bullish momentum over multiple time horizons, even as short-term volatility persists.

Investor Participation and Liquidity

Investor engagement has notably increased, with delivery volumes on 18 Feb reaching 15.57 lakh shares, a 141.9% rise compared to the five-day average delivery volume. This surge in delivery volume indicates genuine accumulation rather than mere speculative trading. Furthermore, the stock’s liquidity remains adequate, supporting trade sizes up to ₹2.03 crore based on 2% of the five-day average traded value, facilitating smooth execution for large institutional orders.

Market Positioning and Directional Bets

The sharp rise in open interest alongside a modest price decline suggests a nuanced market stance. Traders may be building positions anticipating a potential rebound or a volatility spike. The increase in OI often reflects fresh money entering the market, either through long calls or puts, or through futures contracts, signalling directional bets or hedging strategies.

Given Marico’s sectoral context within edible oils, which has seen steady demand and supply-side pressures, the derivatives activity could be driven by expectations of margin expansion or raw material cost fluctuations. The stock’s Mojo Score of 67.0 and a recent upgrade from a Sell to Hold rating on 9 Dec 2025 further support a cautious but constructive outlook.

Comparative Performance and Sectoral Trends

Marico’s one-day return of -1.61% closely mirrors the edible oil sector’s decline of -1.59%, while the broader Sensex fell by -0.85%. This relative performance indicates that Marico is moving largely in tandem with sectoral pressures rather than diverging significantly. Investors should monitor sectoral developments, including commodity price movements and regulatory changes, which could influence Marico’s near-term trajectory.

Valuation and Market Capitalisation

With a market capitalisation of ₹1,02,882 crore, Marico is classified as a mid-cap stock. Its Market Cap Grade of 2 reflects moderate size and liquidity, suitable for investors seeking exposure to the edible oil sector with a blend of growth and stability. The recent upgrade in Mojo Grade from Sell to Hold signals improving fundamentals and market sentiment, though caution remains warranted given the recent price pullback.

Outlook and Investor Considerations

Investors analysing Marico’s recent derivatives activity should weigh the implications of rising open interest against the backdrop of a short-term price correction. The elevated OI and volume suggest that market participants are positioning for a potential directional move, possibly anticipating renewed upward momentum or increased volatility. The stock’s strong technical positioning above key moving averages and improved Mojo Grade support a cautiously optimistic stance.

However, the recent intraday price dip and sectoral headwinds advise prudence. Investors may consider monitoring open interest trends in the coming sessions to confirm whether the surge represents sustained accumulation or speculative positioning. Additionally, tracking delivery volumes and comparing them with average levels can provide insights into genuine investor conviction versus short-term trading activity.

Overall, Marico Ltd. remains a key stock to watch within the edible oil sector, balancing solid fundamentals with dynamic market positioning in the derivatives space.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →