Marico Ltd Sees Significant Open Interest Surge Signalling Market Positioning Shift

Open Interest and Volume Dynamics

On 23 Feb 2026, Marico’s open interest in futures and options contracts rose sharply by 5,221 contracts, a 15.08% increase from the previous day’s 34,630 to 39,851. This notable expansion in OI was accompanied by a futures volume of 14,797 contracts, indicating robust trading activity. The combined futures and options value stood at approximately ₹93,565 lakhs, underscoring the substantial capital flow into the stock’s derivatives market.

The underlying stock price closed at ₹795, just 0.59% shy of its 52-week high of ₹800, signalling strong price momentum. Marico has gained 1.94% over the last two trading sessions, outperforming the Sensex’s modest 0.33% gain and slightly edging past the edible oil sector’s 0.94% rise. This price action, coupled with rising OI, suggests that market participants are positioning for further upside.

Technical Positioning and Moving Averages

Marico is currently trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which is a bullish technical indicator. This alignment of moving averages often attracts momentum traders and institutional investors, reinforcing the positive sentiment. The stock’s delivery volume on 20 Feb was 10.25 lakh shares, a 28.44% increase over the five-day average, indicating rising investor participation in the cash market as well.

Market Cap and Quality Assessment

With a market capitalisation of ₹1,03,161 crore, Marico is classified as a mid-cap stock. Its MarketsMOJO Mojo Score has improved to 67.0, upgrading its Mojo Grade from Sell to Hold as of 9 Dec 2025. This upgrade reflects a better fundamental and technical outlook, although the stock still carries a moderate risk profile given its market cap grade of 2. Investors should weigh this balanced rating when considering exposure.

Interpreting the Open Interest Surge

The 15.08% rise in open interest is a strong signal that fresh positions are being built rather than existing ones being squared off. This typically indicates that traders are taking new directional bets, expecting the stock to move decisively in the near term. Given the stock’s proximity to its 52-week high and positive price momentum, it is plausible that the majority of these positions are bullish.

Moreover, the futures value of ₹93,311 lakhs and options value exceeding ₹4,783 crores highlight the significant liquidity and interest in Marico’s derivatives. Such liquidity is crucial for institutional players who require sizeable trade sizes without impacting prices excessively.

Sectoral and Broader Market Context

Marico’s edible oil sector has been relatively stable, with the sector index rising 0.94% on the day, slightly below Marico’s 1.06% gain. The stock’s outperformance suggests company-specific factors are driving investor enthusiasm. Rising edible oil prices globally and improving demand fundamentals may be contributing to this optimism.

Additionally, the Sensex’s modest 0.33% gain indicates that Marico’s move is not merely a reflection of broader market trends but rather a targeted interest in the stock itself. This divergence often precedes sustained price moves as sector or stock-specific catalysts come into play.

Investor Participation and Liquidity Considerations

Delivery volumes rising by 28.44% to 10.25 lakh shares on 20 Feb demonstrate that investors are increasingly holding shares rather than trading intraday. This rising investor participation is a positive sign of conviction. Furthermore, the stock’s liquidity supports trade sizes of up to ₹2.33 crore based on 2% of the five-day average traded value, making it accessible for both retail and institutional investors.

Potential Risks and Market Positioning

While the surge in open interest and rising prices are encouraging, investors should remain cautious. The edible oil sector is subject to commodity price volatility, regulatory changes, and currency fluctuations that can impact margins. Marico’s Hold rating by MarketsMOJO reflects these risks alongside its growth potential.

Market positioning data suggests a tilt towards bullish bets, but the sizeable options value also indicates hedging activity, which could temper volatility. Traders should monitor changes in put-call ratios and expiry dynamics to better gauge sentiment shifts.

Outlook and Strategic Implications

Marico’s current technical and derivatives market signals point to a positive near-term outlook. The stock’s ability to sustain above key moving averages and maintain rising open interest supports the case for further gains. Investors with a medium-term horizon may consider adding exposure, balancing it with sector and macroeconomic factors.

Given the mid-cap status and evolving fundamentals, active monitoring of quarterly results, commodity price trends, and policy developments will be essential to capitalise on emerging opportunities while managing downside risks.

Summary

In summary, Marico Ltd. is experiencing a meaningful increase in derivatives open interest, accompanied by rising volumes and positive price momentum. The stock’s technical strength, improved Mojo Grade, and growing investor participation underpin a cautiously optimistic outlook. However, sector-specific risks and market volatility warrant a balanced approach for investors seeking to capitalise on this momentum.

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