Petronet LNG Sees Sharp Open Interest Surge Amid Bullish Market Momentum

Open Interest and Volume Dynamics

On 27 Feb 2026, Petronet LNG’s open interest in futures and options contracts rose sharply by 3,003 contracts, an 11.17% increase from the previous day’s 26,884 contracts to 29,887. This notable expansion in OI was accompanied by a robust volume of 31,508 contracts, indicating active participation in the derivatives market. The futures value stood at ₹47,812.7 lakhs, while the options segment contributed a substantial ₹14,895.9 crores, culminating in a total derivatives value of approximately ₹50,804.4 lakhs.

This surge in open interest, combined with elevated volumes, suggests that market participants are either initiating new positions or adding to existing ones, reflecting a strong conviction in the stock’s near-term direction.

Price Performance and Technical Strength

Petronet LNG’s underlying share price closed at ₹324, just 0.57% shy of its 52-week high of ₹326.5. The stock has outperformed its sector by 2.36% on the day and has recorded a consecutive four-day gain, delivering a cumulative return of 5.94% over this period. Intraday, the stock touched a high of ₹326.4, marking a 2.97% rise from the previous close.

Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bullish trend. The rising delivery volume of 20.88 lakh shares on 26 Feb, which is 49.8% higher than the five-day average, further confirms growing investor participation and confidence.

Market Positioning and Directional Bets

The sharp rise in open interest alongside increasing volumes points to a growing bullish sentiment among traders. The stock’s futures premium and the elevated options value indicate that participants are positioning for further upside, possibly anticipating positive catalysts in the gas sector or company-specific developments.

However, it is important to note that Petronet LNG’s Mojo Score currently stands at 47.0, with a Mojo Grade of Sell, downgraded from Hold on 23 Feb 2026. This rating reflects some caution due to valuation concerns or sector headwinds, despite the recent price strength. The market cap grade is 2, categorising it as a mid-cap stock with moderate liquidity and risk profile.

Investors should weigh the technical momentum against the fundamental caution signalled by the Mojo Grade. The stock’s dividend yield of 3.15% remains attractive, providing some income cushion amid volatility.

Sector and Broader Market Context

Petronet LNG’s 1-day return of 2.52% notably outpaced the gas sector’s modest 0.12% gain and the broader Sensex’s decline of 0.79%. This relative strength highlights the stock’s appeal as a potential outperformer within its industry. The gas sector continues to benefit from stable demand fundamentals and government focus on cleaner energy sources, which may underpin medium-term growth prospects.

Liquidity remains adequate, with the stock’s average traded value supporting trade sizes of up to ₹1.83 crore based on 2% of the five-day average traded value, ensuring smooth execution for institutional investors.

Investor Takeaway

The recent surge in open interest and volume in Petronet LNG’s derivatives market underscores a growing conviction in the stock’s upward trajectory. The technical indicators support this bullish stance, with the stock trading near its 52-week high and outperforming both sector and benchmark indices.

Nonetheless, the downgrade to a Sell rating by MarketsMOJO’s proprietary scoring system signals caution. Investors should carefully monitor upcoming earnings, sector developments, and global energy trends before committing fresh capital. The attractive dividend yield and improving liquidity provide some comfort for medium-term holders.

Overall, Petronet LNG presents a mixed picture: strong technical momentum and market interest balanced against fundamental concerns and a cautious rating. Active traders may find opportunities in the derivatives market’s heightened activity, while long-term investors should consider alternative mid-cap gas stocks with higher Mojo Grades for potentially better risk-adjusted returns.

Outlook

Given the current market positioning and open interest trends, Petronet LNG is likely to remain in focus for short-term directional bets. The stock’s ability to sustain above key moving averages and near 52-week highs will be critical in confirming a sustained uptrend. Conversely, any sharp reversal in open interest or volume could signal profit-taking or a shift in sentiment.

Investors are advised to keep a close watch on derivative market data as a barometer of institutional and retail sentiment, which often precedes price movements in the underlying equity.

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