Open Interest and Volume Dynamics
On 23 Feb 2026, Nestle India’s open interest in derivatives climbed to 53,686 contracts from 46,096 the previous day, marking an increase of 7,590 contracts or 16.47%. This expansion in OI was accompanied by a futures volume of 28,352 contracts, reflecting heightened trading activity. The combined futures and options value stood at approximately ₹11,104 crores, underscoring the substantial liquidity and investor interest in the stock’s derivatives.
The underlying stock price closed at ₹1,304, just 2.46% shy of its 52-week high of ₹1,340.4, indicating strong price momentum. Notably, Nestle India has outperformed its FMCG sector peers by 0.28% on the day and has recorded a 2.32% return over the past two consecutive trading sessions. The stock is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained uptrend.
Investor Participation and Liquidity
Investor participation has been robust, with delivery volumes on 20 Feb reaching 4.8 lakh shares, a 68.18% increase over the five-day average delivery volume. This surge in delivery volume indicates genuine accumulation rather than speculative trading. The stock’s liquidity profile remains strong, supporting trade sizes up to ₹1.45 crore based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.
Market Positioning and Directional Bets
The sharp rise in open interest alongside increasing volumes and price appreciation suggests that market participants are positioning for further upside in Nestle India. The increase in OI typically reflects fresh capital entering the market rather than short-covering, implying that traders are building new positions. Given the stock’s proximity to its 52-week high and positive technical indicators, it is plausible that investors are betting on continued strength in the FMCG sector, driven by resilient consumer demand and steady earnings growth.
However, the MarketsMOJO Mojo Score for Nestle India currently stands at 65.0 with a Mojo Grade of Hold, downgraded from Buy on 19 Feb 2026. This reflects a cautious stance amid valuation concerns and sector headwinds. The market cap grade remains at 1, indicating the company’s large-cap status with stable fundamentals but limited near-term upside according to the rating model.
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Comparative Sector and Benchmark Performance
In the context of broader market movements, Nestle India’s 1-day return of 1.10% outpaced the FMCG sector’s 0.88% gain and the Sensex’s 0.44% rise on the same day. This relative outperformance highlights the stock’s defensive qualities and investor preference amid mixed macroeconomic signals. The FMCG sector, known for its stability, continues to attract capital, but Nestle India’s derivatives activity suggests a more nuanced market view, possibly anticipating selective growth opportunities within the sector.
Technical and Fundamental Outlook
Technically, the stock’s position above all major moving averages confirms a bullish trend, supported by rising volumes and open interest. The proximity to the 52-week high indicates strong resistance levels that, if breached, could trigger further buying interest. On the fundamental front, Nestle India’s large market capitalisation of ₹2,53,352 crore and consistent earnings growth underpin its status as a blue-chip FMCG stock. However, the recent downgrade in Mojo Grade to Hold signals that valuations may be stretched, warranting cautious optimism.
Risks and Considerations
Investors should remain mindful of potential risks including raw material inflation, regulatory changes, and competitive pressures within the FMCG space. The derivatives market activity, while indicative of bullish sentiment, can also amplify volatility if market conditions shift abruptly. Monitoring open interest trends alongside price action will be crucial to gauge the sustainability of current positioning.
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Conclusion: A Cautious Bullish Stance
The recent surge in Nestle India’s derivatives open interest, combined with strong volume and price action, signals a growing bullish sentiment among market participants. Investors appear to be positioning for continued gains, supported by the stock’s technical strength and sector resilience. Nevertheless, the downgrade to a Hold rating by MarketsMOJO reflects tempered expectations amid valuation concerns and potential sector challenges.
For investors, this environment calls for a balanced approach—recognising the stock’s leadership in FMCG while remaining vigilant to shifts in market dynamics. Tracking open interest trends and delivery volumes will provide valuable insights into evolving market positioning and potential directional bets in the near term.
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