Open Interest and Volume Dynamics
The latest data reveals that Polycab’s open interest (OI) in futures and options contracts has risen sharply by 5,677 contracts, a 17.7% increase from the previous figure of 32,058 to 37,735. This notable expansion in OI is accompanied by a substantial volume of 41,622 contracts traded, underscoring active participation in the derivatives market. The combined futures and options value stands at approximately ₹63,653 lakhs, with futures alone accounting for ₹55,068 lakhs, indicating a strong flow of capital into the stock’s derivative instruments.
The underlying stock price has also been on a steady ascent, currently trading at ₹8,707, just shy of its intraday high of ₹8,722, marking a 2.54% gain on the day. This price action is supported by the stock outperforming its sector by 1.75% and the broader Sensex, which declined by 0.75% on the same session. Polycab’s consistent gains over the past six trading days have yielded an impressive 11.91% return, reflecting sustained investor confidence.
Market Positioning and Directional Bets
The surge in open interest alongside rising prices typically indicates fresh long positions being established, suggesting that market participants are positioning for further upside. The increase in delivery volume to 3.95 lakh shares on 26 February, a 5.36% rise over the five-day average, further corroborates the growing conviction among investors to hold the stock rather than trade it intraday.
Polycab’s trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — reinforces the bullish technical setup. This alignment of technical indicators with rising OI and volume points to a strong directional bias favouring continued price appreciation. The liquidity profile, with a trade size capacity of ₹11.24 crore based on 2% of the five-day average traded value, ensures that institutional and retail investors can transact sizeable volumes without significant market impact.
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Mojo Score Upgrade and Market Capitalisation
Reflecting the positive momentum, Polycab India Ltd’s Mojo Score has been upgraded to 78.0, with its Mojo Grade improving from Hold to Buy as of 21 July 2025. This upgrade signals enhanced confidence in the stock’s fundamentals and technical outlook. The company remains a large-cap heavyweight with a market capitalisation of ₹1,28,629 crore, underscoring its dominant position in the cables and electricals industry.
The stock’s outperformance relative to its sector and the broader market, combined with its upgraded rating, suggests that institutional investors are increasingly viewing Polycab as a core portfolio holding. The company’s strong fundamentals, coupled with favourable industry tailwinds, support this positive stance.
Implications for Investors and Traders
The sharp rise in open interest and volume in Polycab’s derivatives market indicates that traders are actively building positions, likely anticipating further price gains. This is consistent with the stock’s technical strength and improving fundamental outlook. Investors should note the sustained upward trend and consider the stock’s liquidity and delivery volumes as indicators of robust market participation.
However, as with any strong rally, caution is warranted given the potential for profit booking or volatility spikes. Monitoring open interest changes alongside price action will be crucial to gauge whether the bullish momentum is supported by genuine accumulation or speculative positioning.
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Sectoral Context and Broader Market Trends
Polycab’s performance stands out in the cables and electricals sector, which has seen moderate gains but lagged behind the stock’s 2.33% one-day return. The sector’s 0.64% gain and the Sensex’s decline of 0.75% on the same day highlight Polycab’s relative strength. This divergence suggests that the company is benefiting from company-specific catalysts, including strong order inflows, margin expansion, or favourable policy developments.
Given the sector’s critical role in infrastructure and industrial growth, Polycab’s leadership position and robust financial metrics position it well to capitalise on ongoing demand. The stock’s ability to sustain its upward trajectory will depend on continued execution and market sentiment towards the electrical cables industry.
Conclusion: A Bullish Outlook Supported by Derivatives Activity
The pronounced increase in open interest and trading volumes in Polycab India Ltd’s derivatives market, coupled with its strong price performance and upgraded Mojo Grade, paints a bullish picture for the stock. Market participants appear confident in the company’s growth prospects, as evidenced by rising investor participation and technical strength across multiple timeframes.
While the current momentum is encouraging, investors should remain vigilant for any signs of reversal or excessive speculative activity. Overall, Polycab India Ltd remains a compelling large-cap stock in the cables and electricals sector, with derivatives market data providing valuable insights into evolving market positioning and sentiment.
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