Key Events This Week
Jan 19: Robust trading activity with 4.04% price gain and sector outperformance
Jan 21: Significant 12.8% surge in open interest amid price decline
Jan 22: Open interest rises 13.1% as stock outperforms sector and Sensex
Jan 23: Sharp 13.6% open interest increase despite 3.98% price fall
19 January: Strong Start with Robust Trading and Sector Outperformance
Polycab India Ltd began the week on a positive note, surging 4.04% to close at Rs.7,419.10, significantly outperforming the Sensex which declined 0.49% to 36,650.97. The stock recorded a high traded volume of 2,92,044 shares, translating into a turnover of ₹21,231.28 lakhs, placing it among the most actively traded stocks by value in the cables electrical sector. This strong liquidity and price appreciation followed a recent upgrade in the company’s Mojo Grade to Buy, reflecting renewed institutional interest and a potential trend reversal after a prolonged decline.
Despite the positive price action, delivery volumes showed a decline, suggesting a shift towards short-term speculative trading. The stock’s price remained above its 200-day moving average but below shorter-term averages, indicating resistance in the near term. Polycab’s market capitalisation stood at ₹1,08,868.15 crores, reinforcing its mid-cap status with solid fundamentals underpinning the rally.
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20-21 January: Price Weakness Amid Rising Open Interest and Declining Delivery Volumes
Following the strong start, Polycab India Ltd faced selling pressure on 20 January, dropping 4.65% to Rs.7,073.80, with the Sensex falling 1.82%. The downtrend continued on 21 January with a further 1.42% decline to Rs.6,973.10, underperforming the benchmark index which fell 0.47%. Notably, on 21 January, the stock’s derivatives segment saw a sharp 12.8% increase in open interest to 68,784 contracts, signalling heightened market activity despite the price softness.
This surge in open interest, coupled with a futures value of ₹1,71,337 lakhs and options notional value of ₹82,699 crores, indicated active repositioning by traders. The stock’s price remained above the 200-day moving average but below shorter-term averages, reflecting short- to medium-term weakness. Delivery volumes declined sharply by 58.7% on 20 January, suggesting reduced conviction among long-term holders and a shift towards derivatives for tactical positioning.
22 January: Renewed Optimism as Price Outperforms with Further Open Interest Growth
On 22 January, Polycab India Ltd rebounded modestly, gaining 0.35% to close at Rs.6,997.40, outperforming the sector’s 0.59% decline and the Sensex’s 0.76% rise. The derivatives market activity intensified with open interest climbing 13.1% to 70,228 contracts, accompanied by a futures volume of 58,563 contracts and a total derivatives market value of ₹1,85,110 lakhs.
This combination of rising open interest and positive price action suggested fresh long positions or short covering, signalling bullish sentiment. However, delivery volumes remained subdued, down 46.7% compared to the five-day average, indicating some profit-booking or cautious investor stance. The stock’s technical setup showed consolidation below key moving averages within a longer-term uptrend, hinting at a potential breakout if momentum sustains.
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23 January: Bearish Close Despite Sharp Open Interest Surge
The week ended on a bearish note as Polycab India Ltd declined 3.98% to Rs.6,719.00, underperforming the Cables - Electricals sector’s 1.63% fall and the Sensex’s 1.33% drop. Intraday, the stock touched a low of Rs.6,708, reflecting selling pressure. Contrasting the price weakness, open interest surged 13.6% to 68,619 contracts, with total derivatives turnover reaching ₹1,81,930 lakhs, highlighting active repositioning in the derivatives market.
Technically, the stock traded below all major moving averages including the 200-day, signalling bearish momentum across timeframes. Delivery volumes dropped sharply by 69.37%, indicating diminished long-term investor conviction. The rising open interest amid falling prices suggests fresh short positions or hedging activity, pointing to increased near-term volatility and caution among traders.
Daily Price Comparison: Polycab India Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.7,419.10 | +4.04% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.7,073.80 | -4.65% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.6,973.10 | -1.42% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.6,997.40 | +0.35% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.6,719.00 | -3.98% | 35,609.90 | -1.33% |
Key Takeaways
Positive Signals: Polycab India Ltd demonstrated strong liquidity and institutional interest early in the week, with a notable Mojo Grade upgrade to Buy and a robust market capitalisation of over ₹1 lakh crore. The stock’s ability to outperform the sector and Sensex on select days, coupled with rising open interest on positive price days, indicates underlying bullish conviction among some market participants.
Cautionary Signals: The overall weekly price decline of 5.78% and consistent underperformance relative to the Sensex highlight near-term weakness. Declining delivery volumes throughout the week suggest reduced long-term investor conviction, while the stock’s position below key short-term moving averages signals technical resistance. The sharp increases in open interest amid falling prices on 23 January point to potential short-selling or hedging activity, raising the prospect of heightened volatility.
Investors should weigh the mixed signals from price action, derivatives market activity, and fundamental upgrades carefully. The stock’s mid-cap status and sector positioning offer growth potential, but the current technical and volume patterns warrant a cautious approach in the near term.
Conclusion
Polycab India Ltd’s week was characterised by significant volatility driven by a combination of strong institutional trading, active derivatives market repositioning, and shifting investor sentiment. While the early-week rally and positive rating upgrades provided optimism, the subsequent price declines and rising open interest amid bearish price action underscore a complex market environment. The stock’s technical weakness and falling delivery volumes suggest caution, even as its fundamental profile remains solid.
Market participants should monitor evolving open interest trends, volume patterns, and price movements closely to gauge whether the current consolidation phase will resolve into a sustained recovery or further correction. Polycab India Ltd remains a key mid-cap stock within the cables electrical sector, where strategic positioning and risk management will be essential amid ongoing market fluctuations.
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