Open Interest and Volume Dynamics
On 23 Feb 2026, Polycab India Ltd’s open interest in derivatives rose sharply by 4,553 contracts, a 12.21% increase from the previous OI of 37,290 to 41,843. This surge in OI was accompanied by a futures volume of 32,183 contracts, underscoring active trading interest. The futures value stood at ₹93,670.75 lakhs, while the options segment exhibited an exceptionally high notional value of ₹22,429.36 crores, indicating significant speculative and hedging activity.
The combined derivatives turnover reached ₹95,945.27 lakhs, reflecting strong liquidity and investor engagement. The underlying stock price at ₹7,982 further confirms the positive momentum, as Polycab outperformed its sector by 0.91% and the broader Sensex by 0.72% on the day.
Price Performance and Technical Strength
Polycab India Ltd has been on a steady upward trajectory, gaining 2.31% over the last two consecutive trading sessions. The stock is trading comfortably above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bullish momentum. The recent breakout to a new 52-week high at ₹7,991 is a technical confirmation of strength, attracting further investor interest.
Additionally, delivery volumes surged dramatically on 20 Feb 2026, with 4.81 lakh shares delivered, marking a 450.1% increase over the five-day average delivery volume. This spike in delivery volume suggests genuine accumulation by long-term investors, reinforcing the positive price action.
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Market Positioning and Directional Bets
The sharp increase in open interest alongside rising volumes suggests that market participants are taking fresh positions, likely anticipating further upside in Polycab India Ltd. The 12.21% rise in OI is a strong indicator of new money entering the market rather than short covering, which typically results in declining OI.
Given the stock’s recent outperformance relative to the sector’s 0.20% gain and the Sensex’s 0.40% rise, investors appear confident in Polycab’s growth prospects. The company’s large-cap status, with a market capitalisation of ₹1,19,792.18 crores, and a Mojo Score of 78.0, upgraded from a previous Hold to a Buy rating on 21 Jul 2025, further supports this positive outlook.
Such positioning often reflects expectations of strong earnings growth, favourable industry trends, or potential sectoral tailwinds. The cables and electricals sector is currently benefiting from increased infrastructure spending and electrification initiatives, which could be driving investor optimism in Polycab.
Liquidity and Trading Viability
Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹4.07 crores based on 2% of the five-day average traded value. This ensures that institutional and retail investors can execute sizeable trades without significant market impact, further encouraging participation.
Polycab’s consistent gains and strong technical positioning make it an attractive candidate for both momentum traders and long-term investors seeking exposure to the cables and electricals sector’s growth story.
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Implications for Investors
Investors should note that the surge in open interest combined with rising prices and volumes typically signals a strong bullish consensus. However, it is prudent to monitor for any sudden reversals or profit-booking, especially after a sharp run-up to new highs.
Polycab’s upgrade from Hold to Buy by MarketsMOJO on 21 Jul 2025, supported by a high Mojo Score of 78.0, reflects improved fundamentals and positive market sentiment. The company’s leadership in the cables and electricals industry, backed by solid financials and sector tailwinds, makes it a compelling large-cap pick.
Given the current market positioning, investors may consider adding exposure to Polycab India Ltd while keeping an eye on broader market conditions and sector developments.
Sector and Benchmark Comparison
Compared to the broader cables and electricals sector, which posted a modest 0.20% gain on the day, Polycab’s 1.12% return demonstrates relative strength. The Sensex’s 0.40% rise further highlights Polycab’s outperformance, underscoring its leadership within the sector.
This relative outperformance is supported by strong delivery volumes and sustained investor interest, factors that often precede further price appreciation in fundamentally sound stocks.
Conclusion
The significant increase in open interest and volume in Polycab India Ltd’s derivatives market, coupled with its technical breakout and strong fundamentals, points to a bullish market stance. The stock’s upgrade to a Buy rating and large-cap status further enhance its appeal to investors seeking quality growth opportunities in the cables and electricals sector.
While the current momentum is encouraging, investors should maintain disciplined risk management and monitor market developments closely to capitalise on this promising trend.
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