Open Interest and Volume Dynamics
On 25 Feb 2026, Polycab India Ltd’s open interest (OI) in derivatives rose sharply by 3,430 contracts, an 11.64% increase from the previous day’s 29,476 to 32,906. This uptick in OI was accompanied by a substantial volume of 31,412 contracts traded, reflecting active participation from both institutional and retail investors. The futures segment alone accounted for a value of approximately ₹51,224.24 lakhs, while options contributed a staggering ₹27,712.49 crores, culminating in a total derivatives value of ₹58,246.55 lakhs.
The underlying stock price also demonstrated strength, hitting a new 52-week and all-time high of ₹8,407.5 during intraday trading, marking a 3.53% gain on the day. This price appreciation outperformed the sector by 1.34% and the Sensex by 1.91%, signalling Polycab’s relative strength within the cables and electricals industry.
Market Positioning and Investor Sentiment
The sustained increase in open interest alongside rising prices typically indicates fresh long positions being established, suggesting that market participants are betting on further upside. Polycab’s stock has recorded gains for four consecutive sessions, delivering a cumulative return of 6.86% over this period. This momentum is supported by the stock trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – reinforcing a strong technical uptrend.
Investor participation has also surged, with delivery volumes on 24 Feb reaching 5.01 lakh shares, a remarkable 164.75% increase compared to the five-day average delivery volume. This heightened delivery volume indicates genuine accumulation rather than speculative trading, which bodes well for the stock’s medium-term prospects.
Liquidity remains robust, with the stock’s average traded value supporting trade sizes of up to ₹7.34 crores based on 2% of the five-day average traded value. Such liquidity ensures that large institutional trades can be executed without significant price impact, further attracting big-ticket investors.
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Mojo Score Upgrade and Market Capitalisation
Reflecting the improving fundamentals and positive market outlook, Polycab India Ltd’s Mojo Score has been upgraded to 78.0, with the Mojo Grade moving from Hold to Buy as of 21 Jul 2025. This upgrade signals enhanced confidence in the company’s growth trajectory and earnings quality. The stock’s market capitalisation stands at a commanding ₹1,24,813 crores, categorising it firmly as a large-cap entity within the cables and electricals sector.
Such a high market cap grade (1) combined with a strong Mojo Score indicates that Polycab is well-positioned to benefit from infrastructure growth and electrification trends across India. The company’s consistent execution and operational efficiency have been key drivers behind this positive reassessment.
Directional Bets and Derivatives Market Implications
The surge in open interest, particularly in futures and options, suggests that traders are positioning for continued upside in Polycab’s shares. The increase in futures value to over ₹51,000 lakhs and options value exceeding ₹27,700 crores highlights significant speculative and hedging activity. This level of derivatives engagement often precedes notable price moves, as it reflects both directional bets and risk management strategies by market participants.
Given the stock’s recent outperformance relative to the sector and benchmark indices, the derivatives market activity may be signalling a consensus expectation of sustained momentum. However, investors should remain cautious of potential volatility, especially as the stock approaches psychological resistance levels near ₹8,500.
Technical indicators support this view, with Polycab trading comfortably above all major moving averages, indicating a strong bullish trend. The rising delivery volumes and liquidity further reinforce the stock’s attractiveness for medium to long-term investors seeking exposure to the electrical cables industry.
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Sectoral Context and Comparative Performance
Within the cables and electricals sector, Polycab’s 1-day return of 2.09% notably outpaced the sector’s 1.12% gain and the Sensex’s modest 0.18% rise. This relative strength highlights the company’s leadership position and investor preference amid a competitive landscape. The sector itself is poised for growth driven by increasing demand for electrical infrastructure, renewable energy integration, and urbanisation.
Polycab’s ability to sustain gains and attract rising open interest in derivatives markets suggests that it remains a preferred stock for investors seeking exposure to these secular trends. The company’s strong delivery volumes and liquidity metrics further enhance its appeal as a tradable large-cap stock with solid fundamentals.
Outlook and Investment Considerations
Looking ahead, Polycab India Ltd’s robust open interest growth and positive price momentum indicate a bullish market stance. Investors should monitor the derivatives activity closely as it often provides early signals of shifts in market sentiment and potential price volatility. The stock’s upgraded Mojo Grade to Buy and high Mojo Score reinforce its attractiveness for accumulation.
However, prudent investors should also consider broader market conditions, sectoral developments, and valuation levels before committing fresh capital. While the technical and fundamental indicators are favourable, the stock’s recent sharp rise warrants vigilance for any profit-booking or short-term corrections.
Overall, Polycab India Ltd’s recent surge in open interest and sustained price gains reflect strong market confidence and positioning for further upside in the cables and electricals sector.
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