Open Interest and Volume Dynamics
On 23 Feb 2026, Polycab’s open interest in derivatives rose sharply by 5,555 contracts, a 14.9% increase from the previous OI of 37,290 to 42,845. This notable expansion in OI accompanied a futures volume of 41,006 contracts, underscoring active trading interest. The futures value stood at ₹1,20,718.40 lakhs, while the options segment exhibited a substantial notional value of ₹28,593.07 crores, culminating in a total derivatives market value of approximately ₹1,23,818.48 lakhs.
The underlying stock price at ₹7,951 further validates the strong market engagement, with the stock outperforming its sector by 1.2% on the day and delivering a 1.47% return compared to the sector’s 0.32% and Sensex’s 0.33% gains. Polycab’s consistent upward momentum is evident as it has gained for two consecutive days, accumulating a 2.55% return in this period.
Technical Strength and Investor Participation
Polycab India is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong bullish trend. The delivery volume on 20 Feb surged to 4.81 lakh shares, a remarkable 450.1% increase over the five-day average delivery volume, indicating rising investor conviction and participation in the stock.
Liquidity remains robust, with the stock’s traded value supporting a trade size of ₹4.07 crore based on 2% of the five-day average traded value, ensuring ease of entry and exit for institutional and retail investors alike.
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Market Positioning and Directional Bets
The surge in open interest alongside rising volumes suggests that traders are actively positioning themselves for a potential continuation of the uptrend in Polycab India. The 14.9% increase in OI is a strong indicator of fresh money entering the market rather than mere position squaring, which often leads to OI contraction.
Given the stock’s recent breakout to an all-time high and its outperformance relative to the sector, market participants appear to be taking bullish stances, possibly through futures contracts and call options. The substantial notional value in options further supports the view that investors are leveraging derivatives to capitalise on expected upward price movements.
Polycab’s Mojo Score of 78.0 and an upgraded Mojo Grade from Hold to Buy as of 21 Jul 2025 reinforce the positive sentiment. The company’s large-cap status with a market capitalisation of ₹1,20,206.19 crore adds to its appeal as a stable yet growth-oriented investment within the cables and electricals sector.
Sectoral and Broader Market Context
Within the cables and electricals sector, Polycab’s performance stands out, with the stock’s 1.61% day change surpassing sector averages. This relative strength is crucial in a market environment where sector rotation and thematic investing influence stock trajectories. The stock’s ability to maintain gains above all major moving averages indicates sustained buying interest and technical resilience.
Moreover, the rising delivery volumes and liquidity metrics suggest that institutional investors are increasingly participating, which often precedes sustained price appreciation. The combination of technical strength, improving fundamentals, and active derivatives market positioning paints a compelling picture for investors seeking exposure to the electrical cables industry.
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Implications for Investors
For investors, the current derivatives market activity in Polycab India Ltd signals a favourable risk-reward profile. The rising open interest and volume, coupled with the stock’s technical breakout and strong fundamentals, suggest that the market consensus is increasingly bullish.
However, investors should remain mindful of broader market volatility and sector-specific risks such as raw material price fluctuations and regulatory changes impacting the electrical cables industry. Monitoring open interest trends alongside price action will be critical to gauge the sustainability of the current rally.
Given the upgraded Mojo Grade to Buy and a high Mojo Score, Polycab India is well-positioned for further gains, but prudent investors should consider position sizing and stop-loss strategies to manage downside risks effectively.
Conclusion
The sharp increase in open interest and trading volumes in Polycab India Ltd’s derivatives market reflects strong market conviction and directional bets favouring an upward trajectory. Supported by robust technical indicators, rising investor participation, and a positive fundamental outlook, the stock is poised for continued momentum within the cables and electricals sector.
As the stock trades near its all-time highs with sustained liquidity and institutional interest, Polycab India presents an attractive opportunity for investors seeking exposure to a large-cap growth story underpinned by solid market positioning and favourable sector dynamics.
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