Open Interest and Volume Dynamics
On 7 January 2026, Polycab India Ltd recorded an open interest (OI) of 36,591 contracts in its derivatives, marking an 11.4% increase from the previous OI of 32,847. This rise of 3,744 contracts is significant, indicating fresh positions being established by traders and investors. The volume for the day stood at 31,975 contracts, closely aligned with the OI, suggesting active trading and sustained interest in the stock’s futures and options.
The futures value traded was ₹58,013.81 lakhs, while the options segment saw a massive notional value of approximately ₹26,570.98 crores, culminating in a total derivatives turnover of ₹63,257.02 lakhs. This robust activity underscores the heightened speculative and hedging interest in Polycab’s shares.
Price Performance and Market Context
Polycab’s underlying share price closed at ₹7,905, just shy of its fresh high, and has been on a steady upward trajectory. The stock has gained 1.8% over the last two consecutive trading sessions, outperforming the Cables - Electricals sector by 1.51% and the broader Sensex, which declined by 0.30% on the same day. This relative strength highlights Polycab’s resilience amid mixed market conditions.
Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong bullish trend. However, delivery volumes have seen a decline, with 2.19 lakh shares delivered on 6 January, down 21.08% from the five-day average, indicating that short-term traders may be dominating the price action rather than long-term holders.
Market Positioning and Directional Bets
The surge in open interest combined with rising prices typically suggests fresh long positions being built, reflecting bullish sentiment among market participants. The increase in OI by 11.4% alongside a 1.48% day gain points to a directional bet favouring further upside in Polycab’s shares.
Given the substantial notional value in options, it is likely that traders are employing a mix of strategies, including call buying and protective puts, to capitalise on expected volatility or to hedge existing exposures. The elevated futures turnover also indicates institutional participation, possibly signalling confidence in the company’s fundamentals and growth prospects.
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Fundamental and Technical Ratings
Polycab India Ltd currently holds a Mojo Score of 71.0, categorised as a Buy, upgraded from a previous Hold rating on 21 July 2025. This upgrade reflects improved fundamentals and technical strength, supported by a Market Cap Grade of 2, indicating a mid-cap status with solid market capitalisation of ₹1,19,045.82 crores.
The stock’s consistent outperformance relative to its sector and the broader market, combined with strong derivatives activity, reinforces the positive outlook. Investors should note the stock’s liquidity, which supports trade sizes up to ₹6.52 crores based on 2% of the five-day average traded value, ensuring ease of entry and exit for institutional and retail participants alike.
Sectoral and Broader Market Implications
The cables and electricals sector has been witnessing steady demand driven by infrastructure development and electrification initiatives across India. Polycab, as a leading player, is well positioned to benefit from these trends. The recent surge in derivatives open interest may also reflect broader sector rotation into quality mid-cap stocks with strong growth visibility.
However, the decline in delivery volumes suggests some caution among long-term investors, possibly due to profit booking or portfolio rebalancing. This mixed participation warrants close monitoring of price and volume trends in the coming sessions to confirm sustained momentum.
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Outlook and Investor Considerations
With Polycab India Ltd’s derivatives market showing increased open interest and volume, alongside a strong price rally, the stock appears poised for further gains in the near term. The upgrade to a Buy rating and the positive technical setup support this view.
Investors should remain vigilant for any shifts in delivery volumes or sudden volatility spikes, which could signal profit-taking or changing market sentiment. Monitoring the balance between futures and options activity will also provide clues on the evolving positioning of institutional and retail traders.
Overall, Polycab’s current market behaviour suggests a constructive environment for investors seeking exposure to the cables and electricals sector, backed by solid fundamentals and active market participation.
Summary of Key Metrics
• Open Interest: 36,591 contracts (up 11.4%)
• Volume: 31,975 contracts
• Futures Value: ₹58,013.81 lakhs
• Options Value: ₹26,570.98 crores
• Total Derivatives Turnover: ₹63,257.02 lakhs
• Underlying Price: ₹7,905
• Market Cap: ₹1,19,045.82 crores
• Mojo Score: 71.0 (Buy, upgraded from Hold)
• Day Price Change: +1.48%
• Sector Return: +0.02%
• Sensex Return: -0.30%
Investors looking to capitalise on Polycab’s momentum should consider the stock’s liquidity and technical strength, while keeping an eye on broader market cues and sector developments.
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