Open Interest and Volume Dynamics
On 19 Feb, Marico’s open interest (OI) in futures and options contracts rose sharply from 33,227 to 37,058 contracts, an increase of 3,831 contracts or 11.53%. This surge in OI accompanied a futures volume of 16,380 contracts, underscoring robust trading activity. The combined futures and options value stood at approximately ₹7,27,07.5 lakhs, with futures contributing ₹72,282.4 lakhs and options an overwhelming ₹8,413.07 crores, highlighting significant derivative market interest.
The underlying stock price closed at ₹782, slightly below its intraday peak of ₹800, marking a fresh 52-week and all-time high. However, the stock declined by 1.52% on the day, underperforming the edible oil sector’s 0.85% fall and the Sensex’s 0.56% dip. This divergence suggests that while derivative traders are increasing their exposure, spot market participants may be booking profits or reacting to broader market caution.
Investor Positioning and Market Sentiment
The rise in open interest alongside elevated volumes typically indicates fresh capital entering the market, often reflecting directional bets. In Marico’s case, the increase in OI after three consecutive days of gains followed by a price pullback suggests a nuanced market stance. Traders may be positioning for a potential continuation of the uptrend, supported by the stock trading above all key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), which generally signals a bullish technical setup.
Moreover, delivery volume on 18 Feb surged to 15.57 lakh shares, a 141.9% increase over the five-day average, indicating rising investor participation and conviction in the stock’s medium-term prospects. This heightened delivery volume often reflects genuine buying interest rather than speculative trading, adding weight to the positive technical backdrop.
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Mojo Score Upgrade and Market Capitalisation Context
Marico’s MarketsMOJO score has improved to 67.0, upgrading its grade from Sell to Hold as of 9 Dec 2025. This reflects a more balanced outlook, factoring in the company’s stable fundamentals and improving technical indicators. The stock’s market capitalisation stands at ₹1,02,882 crores, categorising it as a mid-cap entity within the edible oil sector.
Despite the recent price correction, Marico remains well-positioned relative to its sector peers, trading comfortably above all major moving averages. This technical strength, combined with the surge in open interest, suggests that institutional and retail investors are recalibrating their positions, possibly anticipating further upside or hedging against volatility.
Directional Bets and Potential Market Scenarios
The open interest increase of 11.5% alongside a 1.52% price decline may indicate a mix of long and short positions being established. Some traders could be initiating fresh long positions, betting on a rebound after the brief pullback, while others might be adding short exposure to hedge or capitalise on near-term volatility.
Given the stock’s recent peak at ₹800 and subsequent retreat, the market appears to be digesting gains, with derivative traders actively repositioning. The substantial options value suggests that volatility expectations remain elevated, with participants possibly employing strategies such as straddles or spreads to benefit from price swings.
Investors should monitor the evolution of open interest in conjunction with price action over the coming sessions. A sustained rise in OI with price recovery would confirm bullish conviction, whereas a drop in OI amid falling prices might signal profit-taking or unwinding of positions.
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Liquidity and Trading Considerations
Marico’s liquidity profile remains robust, with the stock’s traded value comfortably supporting trade sizes up to ₹2.03 crores based on 2% of the five-day average traded value. This ensures that institutional investors can enter or exit positions without significant market impact, an important factor given the recent surge in derivative activity.
Traders should also consider the broader market context, as the edible oil sector and Sensex have both experienced mild declines, which may weigh on Marico’s near-term performance. However, the company’s strong technical positioning and improving mojo score provide a foundation for potential recovery and further gains.
Outlook and Investor Takeaways
In summary, Marico Ltd.’s sudden open interest surge in derivatives signals increased market attention and evolving investor strategies. While the stock’s recent price dip after a strong rally introduces some caution, the underlying technical strength and rising delivery volumes suggest sustained interest from long-term investors.
Market participants should closely watch open interest trends, price movements, and volume patterns to gauge the prevailing sentiment and directional bias. The mixed signals warrant a balanced approach, with investors considering both the potential for continued upside and the risks of short-term volatility.
Given the current Hold rating and mojo score of 67.0, Marico remains a stock to watch within the edible oil sector, particularly for those seeking exposure to a mid-cap company with solid fundamentals and active derivative market participation.
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