Polycab India Gains 3.47%: 4 Key Factors Driving the Weekly Momentum

16 February: Technical Momentum Shifts Amid Mixed Signals

Polycab India began the week with a nuanced shift in its technical momentum. Despite a slight intraday pullback, the stock closed at Rs.7,635.15, up 0.57% from the previous close, reflecting underlying strength. Technical indicators revealed a transition from a strongly bullish stance to a more cautiously optimistic outlook. The weekly MACD showed mild bearishness, while the monthly MACD remained bullish, suggesting consolidation rather than reversal.

The Relative Strength Index (RSI) was neutral on a weekly basis but bullish monthly, indicating room for further gains. Bollinger Bands and moving averages supported a mildly bullish stance, with the stock maintaining levels near its upper bands. This technical backdrop aligned with the cables and electricals sector’s steady demand, positioning Polycab well amid broader market volatility.

17-18 February: Continued Uptrend Supported by Technical Strength

On 17 February, Polycab advanced 1.40% to close at Rs.7,741.95, outperforming the Sensex’s 0.32% gain. The stock maintained its position above key moving averages, signalling sustained buying interest. The following day, it further rose 1.09% to Rs.7,826.10, continuing its four-day winning streak. Volume levels remained healthy, supporting the price momentum. These gains reflected growing investor confidence amid positive sectoral trends and technical support.

19 February: Sharp Open Interest Surge Signals Bullish Positioning

On 19 February, Polycab India witnessed a significant 23.6% surge in open interest in its derivatives segment, rising to 47,016 contracts from 38,046 the previous day. This increase accompanied a volume of 35,775 contracts and a futures notional value of approximately ₹1,50,887 lakhs, with options contributing ₹19,967.8 crores. The stock closed at Rs.7,773.45, down 0.67% intraday but still near its 52-week high of Rs.7,947.35.

The open interest spike indicated fresh buying interest and bullish market positioning, supported by a 45.23% rise in delivery volume to 1.05 lakh shares on 18 February. Polycab outperformed its sector by 2.08% and the Sensex by 1.57%, maintaining a strong technical stance above all key moving averages. This activity reflected robust investor engagement and confidence in the stock’s near-term prospects.

20 February: Sustained Open Interest Growth and Bullish Technical Outlook

Polycab India continued to attract investor interest on 20 February, with open interest rising 15.6% to 44,441 contracts and volume reaching 45,141 contracts. The combined derivatives turnover was ₹1,62,005 lakhs, underscoring the stock’s liquidity and appeal. The stock closed at Rs.7,855.80, up 1.06% on the day and just 0.79% shy of its 52-week high.

Technical momentum shifted from mildly bullish to a more definitive bullish trend, supported by daily moving averages and monthly MACD turning positive. The Relative Strength Index (RSI) remained bullish monthly, and Bollinger Bands indicated expanding volatility favouring upward movement. Delivery volumes surged 66.72% to 1.34 lakh shares on 19 February, confirming genuine accumulation.

Key Takeaways

Positive Signals: Polycab India outperformed the Sensex by 3.08% over the week, supported by strong technical momentum and sustained investor interest. The sharp surges in open interest on 19 and 20 February indicate fresh bullish positioning in the derivatives market, reflecting confidence in the stock’s near-term upside. Delivery volumes rising significantly on consecutive days confirm genuine accumulation rather than speculative trading. The stock’s trading above all key moving averages and bullish monthly MACD and RSI readings underpin a constructive medium-term outlook.

Cautionary Notes: Despite the overall bullish trend, short-term indicators such as the weekly MACD and KST oscillator showed mild bearishness or neutrality, suggesting potential consolidation or minor corrections ahead. The stock’s proximity to its 52-week high may invite profit booking, which could temper momentum temporarily. Market participants should monitor volume trends and open interest evolution closely to validate the sustainability of the current rally.

Conclusion

Polycab India Ltd demonstrated robust performance during the week ending 20 February 2026, gaining 3.47% and comfortably outperforming the Sensex. The stock’s technical momentum evolved from a cautiously optimistic stance to a more definitive bullish trend, supported by strong moving averages, rising open interest, and increased delivery volumes. These factors collectively signal growing investor confidence and a positive market positioning in the cables and electricals sector.

While short-term caution remains warranted due to mixed weekly momentum indicators and the stock’s near-term price peak, the medium-term outlook is constructive. Polycab’s upgraded Mojo Grade to Buy and its large-cap stature further reinforce its appeal as a growth-oriented stock within its sector. Investors and traders should continue to watch key technical levels and derivatives activity to gauge the durability of this momentum in the coming weeks.

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