Open Interest and Volume Dynamics
The latest data reveals that Polycab’s open interest (OI) in futures and options has risen sharply by 12.02%, climbing from 29,476 contracts to 33,020. This increase of 3,544 contracts is accompanied by a substantial volume of 35,201 contracts traded, underscoring strong participation from market players. The futures value stands at approximately Rs 60,570 lakhs, while the options value is an impressive Rs 30,761 crores, culminating in a total derivatives value of Rs 68,261 lakhs. The underlying stock price currently trades at Rs 8,325, reflecting a premium over recent levels.
The surge in open interest alongside rising volumes typically indicates fresh positions being established rather than existing ones being squared off. This pattern suggests that traders are positioning themselves for a sustained move, likely bullish given the stock’s recent price action and technical strength.
Price Performance and Technical Strength
Polycab India Ltd has outperformed its sector by 0.99% on the day, delivering a 2.64% gain and touching an intraday high of Rs 8,407.5, marking a new 52-week and all-time peak. The stock has recorded gains for four consecutive sessions, accumulating a 6.85% return over this period. It is trading comfortably above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong uptrend and positive investor sentiment.
Investor participation has also intensified, with delivery volumes on 24 February reaching 5.01 lakh shares, a remarkable 164.75% increase compared to the five-day average delivery volume. This heightened delivery volume confirms genuine buying interest rather than speculative trading, reinforcing the bullish narrative.
Market Capitalisation and Sector Context
With a market capitalisation of Rs 1,25,212 crore, Polycab firmly sits in the large-cap category, attracting institutional and retail investors alike. The company operates within the Cables - Electricals industry, a sector that has shown resilience and steady growth amid evolving infrastructure and industrial demand in India.
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Interpreting the Open Interest Surge
The 12% rise in open interest is a clear indication that traders are increasing their exposure to Polycab’s derivatives, likely anticipating further upward price movement. This is supported by the stock’s strong technical positioning and recent price highs. The combination of rising OI and volume often precedes sustained trends, as fresh capital flows into the market.
Moreover, the futures and options values highlight significant liquidity and interest in hedging or speculative strategies. The large options value, in particular, suggests active participation in calls and puts, with market participants possibly favouring call options to capitalise on bullish momentum or protective puts to manage risk.
Mojo Score Upgrade and Analyst Sentiment
Reflecting the positive developments, Polycab India Ltd’s Mojo Score has been upgraded to 78.0, earning a Buy grade as of 21 July 2025, up from a previous Hold rating. This upgrade signals improved fundamentals, valuation attractiveness, and technical strength. The Market Cap Grade remains at 1, underscoring the company’s large-cap stature and stable market presence.
Analysts note that the stock’s liquidity profile is robust, with a trade size capacity of Rs 7.34 crore based on 2% of the five-day average traded value, making it suitable for institutional participation without significant market impact.
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Potential Directional Bets and Market Positioning
The sustained increase in open interest, coupled with rising prices and volumes, suggests that market participants are positioning for continued upside in Polycab India Ltd. The stock’s outperformance relative to its sector (1.36% sector return vs. 2.64% stock return) and the broader Sensex (0.22% return) further supports this view.
Options market activity, given the substantial optValue, indicates that traders may be employing strategies such as buying call options or writing puts to benefit from expected gains. The futures market’s healthy turnover also points to directional bets being placed with conviction.
However, investors should remain mindful of potential volatility, especially as the stock approaches all-time highs. Profit booking or short-term corrections cannot be ruled out, but the overall trend remains positive given the strong fundamentals and technical backdrop.
Conclusion
Polycab India Ltd’s recent surge in open interest and volume in the derivatives segment reflects growing investor confidence and bullish positioning. Supported by a strong price rally, upgraded Mojo Score, and robust liquidity, the stock is well poised for further gains in the near term. Market participants should monitor open interest trends and volume patterns closely as indicators of sustained momentum or potential reversals.
Given the company’s large-cap status, consistent execution, and sector leadership, Polycab remains a compelling pick for investors seeking exposure to the cables and electricals industry’s growth story.
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