Marico Ltd Sees Significant Open Interest Surge Signalling Potential Market Shift

Open Interest and Volume Dynamics

On 22 January 2026, Marico Ltd. (symbol: MARICO) recorded an open interest (OI) of 43,834 contracts in its derivatives market, marking a substantial increase of 7,175 contracts or 19.57% compared to the previous day’s OI of 36,659. This sharp rise in open interest is accompanied by a futures volume of 15,026 contracts, indicating heightened trading activity and fresh positions being established by market participants.

The combined futures and options value stands at approximately ₹97,478 lakhs, with futures contributing ₹97,182 lakhs and options an overwhelming ₹3,932 crores. The underlying stock price closed at ₹755, just 3.23% shy of its 52-week high of ₹780, underscoring the bullish sentiment prevailing in the market.

Market Positioning and Technical Indicators

Marico’s recent price action shows a trend reversal after two consecutive days of decline, with the stock gaining 0.88% on the day, slightly underperforming the edible oil sector’s 0.96% gain but outperforming the Sensex’s 0.22% rise. The stock is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong upward momentum and technical strength.

However, investor participation measured by delivery volume has declined by 19.19% to 7.53 lakh shares on 21 January, compared to the five-day average. This dip in delivery volume suggests that while speculative interest in derivatives is rising, actual stock holding by investors is somewhat subdued, possibly indicating short-term trading strategies rather than long-term accumulation.

Implications of the Open Interest Surge

The surge in open interest alongside rising futures volume typically points to new positions being taken rather than existing ones being squared off. This can be interpreted as a directional bet by traders expecting further price appreciation. Given Marico’s proximity to its 52-week high and positive technical setup, the increased OI may reflect bullish sentiment among institutional and retail traders alike.

Moreover, the futures value of ₹97,182 lakhs and the substantial options value highlight significant liquidity and interest in hedging or speculative strategies. The elevated options value, in particular, suggests active participation in calls and puts, which could be used to express nuanced views on volatility and price direction.

Mojo Score and Market Capitalisation Context

Marico Ltd. currently holds a Mojo Score of 60.0 with a Mojo Grade of Hold, upgraded from a previous Sell rating on 9 December 2025. This upgrade reflects improving fundamentals and technical outlook, although the stock remains a cautious pick for investors given its mid-cap status and market cap grade of 2. The company’s market capitalisation stands at ₹97,921 crores, positioning it as a significant player within the edible oil sector.

The stock’s 1-day return of 0.69% trails slightly behind the sector’s 0.96% gain but outpaces the broader Sensex’s 0.22% rise, indicating sector-specific strength. The edible oil industry continues to benefit from steady demand and favourable commodity price trends, which underpin Marico’s growth prospects.

Volume and Liquidity Considerations

Liquidity remains adequate for sizeable trades, with the stock’s traded value supporting a trade size of approximately ₹2.19 crores based on 2% of the five-day average traded value. This level of liquidity is favourable for institutional investors and traders seeking to enter or exit positions without significant price impact.

Despite the falling delivery volume, the active derivatives market participation suggests that traders are increasingly relying on futures and options to express their views on Marico’s near-term price trajectory. This dynamic is typical in mid-cap stocks where derivatives provide leverage and risk management tools.

Outlook and Investor Takeaways

Marico’s recent open interest surge and positive price momentum suggest that the stock is attracting renewed interest from traders anticipating further upside. The technical strength, combined with the company’s stable fundamentals and sector tailwinds, supports a cautiously optimistic outlook.

Investors should note the decline in delivery volumes, which may imply that the current rally is driven more by short-term speculative activity than by long-term accumulation. This factor warrants close monitoring, especially for those considering fresh positions.

Given the upgraded Mojo Grade to Hold and the stock’s proximity to its 52-week high, investors may prefer to wait for a confirmed breakout above ₹780 or a sustained volume increase before committing significant capital. Meanwhile, the derivatives market activity offers opportunities for tactical trades using futures and options to capitalise on expected volatility.

Overall, Marico Ltd. remains a key stock to watch within the edible oil sector, balancing steady growth prospects with evolving market dynamics.

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