Open Interest and Volume Dynamics
On 29 Dec 2025, Marico’s open interest (OI) in derivatives rose sharply by 4,353 contracts, a 12.41% increase from the previous day’s 35,071 contracts to 39,424. This substantial uptick in OI was accompanied by a daily volume of 15,862 contracts, reflecting heightened trading activity. The futures segment alone accounted for a value of approximately ₹67,144 lakhs, while options contributed an overwhelming ₹7,626.6 crores, culminating in a total derivatives value of ₹67,735 lakhs. Such figures underscore robust liquidity and active positioning in the stock’s derivatives market.
Marico’s underlying spot price closed at ₹751, just 1.84% shy of its 52-week high of ₹765.3, indicating strong price momentum. The stock has gained 0.98% on the day, outperforming its sector’s modest 0.17% rise and contrasting with the Sensex’s decline of 0.41%. This relative strength is further supported by the stock trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained bullish trend.
Market Positioning and Investor Behaviour
The surge in open interest alongside rising prices typically suggests fresh long positions being established, reflecting bullish market sentiment. However, the delivery volume on 26 Dec was 6.38 lakh shares, down 24.35% from the five-day average, indicating a decline in investor participation at the delivery level. This divergence between derivatives activity and delivery volumes may imply that traders are increasingly relying on futures and options for leveraged exposure rather than outright stock purchases.
Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of approximately ₹1.82 crore based on 2% of the five-day average. This ensures that institutional and retail participants can execute significant orders without undue market impact.
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Implications of Derivatives Activity on Directional Bets
The 12.41% increase in open interest, coupled with the stock’s price appreciation, suggests that market participants are positioning for further upside. Typically, rising OI with rising prices indicates fresh buying interest rather than short covering. This is corroborated by Marico’s consecutive two-day gain, delivering a 2.27% return over this period, signalling sustained positive momentum.
Options market data, with an extraordinarily high notional value of ₹7,626.6 crores, points to significant hedging and speculative activity. The large option value relative to futures suggests that traders may be employing complex strategies such as spreads or protective puts to manage risk while maintaining bullish exposure.
Stock Fundamentals and Market Ratings
Marico Ltd. is classified as a mid-cap company with a market capitalisation of ₹96,876 crore. The company operates in the edible oil industry, a sector that has shown resilience amid fluctuating commodity prices and evolving consumer preferences. The stock’s Mojo Score stands at 67.0, reflecting a Hold rating, an upgrade from a previous Sell rating as of 9 Dec 2025. This improvement indicates a stabilisation in fundamentals and a more balanced risk-reward profile for investors.
Despite the Hold rating, the stock’s recent outperformance relative to its sector and the Sensex, combined with strong technical indicators, may attract momentum traders and short-term investors seeking to capitalise on the current bullish trend.
Sector and Broader Market Context
The edible oil sector has been navigating challenges such as raw material price volatility and regulatory changes. Marico’s ability to outperform its sector by 0.93% on the day highlights its relative strength and potential competitive advantages. The broader market’s negative return on the same day (-0.41% for Sensex) further accentuates Marico’s appeal as a defensive or growth-oriented stock within its segment.
Investors should note the divergence between derivatives market enthusiasm and falling delivery volumes, which may reflect a cautious stance among long-term holders or a shift towards more speculative trading strategies. Monitoring upcoming quarterly results, commodity price trends, and policy developments will be crucial to assess the sustainability of this momentum.
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Outlook and Investor Takeaways
Marico’s recent surge in open interest and volume, combined with its technical strength and improved Mojo rating, suggest a cautiously optimistic outlook. The derivatives market activity points to increased bullish positioning, although the decline in delivery volumes warrants attention as it may indicate less conviction among long-term investors.
Investors considering exposure to Marico should weigh the stock’s strong momentum and sector leadership against potential risks from commodity price fluctuations and market volatility. The Hold rating reflects a balanced view, recommending monitoring for confirmation of sustained trends before committing significant capital.
Overall, Marico Ltd. remains a key stock to watch within the edible oil sector, with derivatives market signals providing valuable insights into evolving market sentiment and positioning.
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