Open Interest and Volume Dynamics
On 19 Feb 2026, ONGC's open interest in derivatives rose sharply to 1,52,450 contracts from 1,21,795 the previous day, marking an increase of 30,655 contracts or 25.17%. This surge in OI was accompanied by a volume of 1,93,679 contracts, indicating strong participation in the futures and options market. The futures value stood at ₹2,33,190.53 lakhs, while the options segment exhibited an enormous notional value of approximately ₹95,785.83 crores, culminating in a total derivatives value of ₹2,41,429.10 lakhs.
The underlying stock price closed at ₹275, just 1.69% shy of its 52-week high of ₹280.30, underscoring the stock's resilience and upward momentum. ONGC outperformed its sector by 5.25% and opened with a gap-up of 2.15%, touching an intraday high of ₹276.45, a gain of 4.48% on the day. Notably, the stock is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong technical uptrend.
Market Positioning and Directional Bets
The sharp rise in open interest alongside increasing volumes typically indicates fresh directional bets rather than mere position squaring. In ONGC's case, the 25.17% jump in OI suggests that market participants are adding new long positions, anticipating further price appreciation. This is corroborated by the stock’s outperformance relative to the oil sector and the broader Sensex, which declined by 1.12% on the same day.
Interestingly, despite the bullish derivatives activity, delivery volumes have fallen by 40.77% compared to the 5-day average, with a delivery volume of 63.81 lakh shares on 18 Feb. This divergence between derivatives activity and physical delivery volumes may imply that traders are increasingly relying on derivatives for leveraged exposure rather than outright stock accumulation.
Fundamental and Technical Backdrop
ONGC’s market capitalisation stands at a robust ₹3,46,397.99 crores, categorising it firmly as a large-cap stock. The company boasts a high dividend yield of 5.2% at the current price level, which adds to its appeal for income-focused investors amid volatile markets. The liquidity profile is also favourable, with the stock’s traded value supporting sizeable trade sizes up to ₹10.16 crores based on 2% of the 5-day average traded value.
From a technical perspective, the stock’s sustained trading above all major moving averages signals strong underlying demand and positive momentum. The proximity to the 52-week high further reinforces the bullish narrative, suggesting that investors are positioning for a breakout or continuation of the uptrend.
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Implications for Investors and Traders
The pronounced increase in open interest and volume in ONGC derivatives signals heightened market interest and a potential directional bias towards the upside. Traders should note that such a surge often precedes significant price moves, as fresh capital flows into the stock via futures and options contracts.
However, the decline in delivery volumes suggests caution for long-term investors who prefer physical accumulation over leveraged derivative exposure. The current environment appears more favourable for active traders and short-term investors seeking to capitalise on momentum and volatility.
Given ONGC’s strong fundamentals, including a high dividend yield and large market capitalisation, combined with technical strength and positive derivatives activity, the stock remains an attractive proposition within the oil sector. The recent upgrade in its Mojo Grade from Hold to Buy on 5 Feb 2026, with a Mojo Score of 75.0, further validates the positive outlook.
Sectoral and Broader Market Context
The oil sector has been under pressure recently, with the sector index declining by 1.15% on the day. ONGC’s outperformance against this backdrop highlights its relative strength and investor preference. This divergence may be attributed to company-specific factors such as operational efficiencies, favourable crude oil price trends, or strategic initiatives that have enhanced investor confidence.
Moreover, the broader market’s negative performance, with the Sensex down 1.12%, accentuates ONGC’s resilience and the attractiveness of its risk-reward profile. Investors looking for defensive yet growth-oriented large-cap stocks in the energy space may find ONGC’s current positioning compelling.
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Outlook and Conclusion
In summary, the recent surge in open interest and volume in ONGC derivatives, combined with strong price action and technical indicators, points to a bullish market stance. The stock’s upgrade to a Buy rating by MarketsMOJO, supported by a solid Mojo Score of 75.0, reinforces the positive sentiment.
Investors should monitor the evolving derivatives positioning closely, as sustained increases in OI and volume often precede meaningful price trends. While the decline in delivery volumes warrants caution for long-term accumulation, the overall picture suggests that ONGC is well poised to capitalise on favourable sectoral dynamics and investor interest.
Given its large-cap status, attractive dividend yield, and liquidity profile, ONGC remains a key stock to watch in the oil sector for both traders and investors seeking exposure to India’s energy landscape.
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