Open Interest and Volume Dynamics
The latest data reveals that Polycab’s open interest (OI) in futures and options has risen from 29,476 contracts to 32,424, an increase of 2,948 contracts or 10.0%. This expansion in OI is complemented by a substantial trading volume of 25,241 contracts, underscoring active participation from both institutional and retail investors. The futures value stands at ₹41,825.68 lakhs, while the options segment commands an overwhelming ₹22,174.14 crores in notional value, culminating in a total derivatives market value of approximately ₹46,953.01 lakhs.
Such a pronounced increase in open interest alongside elevated volumes typically indicates fresh capital inflows and new positions being established rather than mere unwinding of existing trades. This pattern often precedes significant price movements, suggesting that market participants are positioning themselves for continued upside in Polycab’s shares.
Price Performance and Technical Strength
Polycab India Ltd has outperformed its sector by 1.61% today, with the stock gaining 3.08% against the sector’s 1.50% and the Sensex’s modest 0.38% rise. The stock has been on a consistent upward trajectory, registering gains over the past four consecutive sessions and delivering a cumulative return of 7.65% during this period. Intraday, the stock touched a high of ₹8,407.5, marking a fresh 52-week and all-time peak.
Technically, Polycab is trading comfortably above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong bullish trend. The rising investor participation is further evidenced by a delivery volume of 5.01 lakh shares on 24 February, which surged by 164.75% compared to the five-day average delivery volume. This heightened delivery volume indicates genuine accumulation rather than speculative trading.
Market Capitalisation and Liquidity Considerations
With a market capitalisation of ₹1,23,314 crore, Polycab firmly holds its position as a large-cap stock within the cables and electricals industry. The stock’s liquidity profile is robust, with the ability to support trade sizes up to ₹7.34 crore based on 2% of the five-day average traded value. This liquidity ensures that institutional investors can enter or exit positions without significant price impact, further supporting the stock’s attractiveness for large-scale investments.
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Directional Bets and Market Positioning
The surge in open interest, combined with rising prices and volumes, suggests that market participants are increasingly bullish on Polycab India Ltd. The 10.0% increase in OI indicates that new long positions are being established, reflecting confidence in the company’s growth prospects and sectoral tailwinds. Given the stock’s recent upgrade from a Hold to a Buy rating by MarketsMOJO on 21 July 2025, with a strong Mojo Score of 78.0, investor sentiment appears well supported by fundamental analysis.
Investors are likely factoring in Polycab’s leadership in the cables and electricals industry, its consistent earnings growth, and favourable demand outlook driven by infrastructure development and electrification initiatives across India. The stock’s ability to sustain above key moving averages further bolsters the technical case for continued appreciation.
Comparative Sector and Benchmark Analysis
Polycab’s outperformance relative to the sector and Sensex highlights its relative strength in a competitive industry. While the sector gained 1.50% on the day, Polycab’s 3.08% rise underscores its leadership position and investor preference. This outperformance is particularly notable given the broader market’s cautious tone, with the Sensex advancing only 0.38%.
Such relative strength often attracts momentum traders and institutional buyers, which can further amplify price gains. The stock’s large-cap status and high liquidity make it a preferred choice for diversified portfolios seeking exposure to the electrical cables segment.
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Outlook and Investor Takeaways
Polycab India Ltd’s recent surge in open interest and volume, coupled with its strong price performance and technical indicators, paints a compelling picture for investors. The stock’s upgrade to a Buy rating by MarketsMOJO, supported by a high Mojo Score of 78.0, reflects improved fundamentals and positive market positioning.
Investors should note the stock’s sustained momentum above all major moving averages and the significant rise in delivery volumes, which indicate genuine accumulation rather than speculative trading. The company’s large market capitalisation and liquidity profile make it a viable option for both retail and institutional investors seeking exposure to the cables and electricals sector.
However, as with any investment, it is prudent to monitor broader market conditions and sectoral developments, including raw material costs and regulatory changes, which could impact future performance. The current data suggests that Polycab is well poised to capitalise on ongoing infrastructure growth and electrification trends in India.
Summary
In summary, the 10.0% increase in open interest in Polycab India Ltd’s derivatives market, alongside strong volume and price action, signals robust bullish sentiment and fresh directional bets favouring an upward trajectory. The stock’s technical strength, fundamental upgrades, and sectoral tailwinds combine to create a favourable investment case for the near to medium term.
Investors looking for exposure to the electrical cables industry should consider Polycab’s current momentum and market positioning as part of a diversified portfolio strategy.
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