Polycab India Ltd Sees Significant Open Interest Surge Signalling Bullish Market Positioning

Open Interest and Volume Dynamics

On 19 Feb 2026, Polycab India Ltd’s open interest (OI) in futures and options contracts rose sharply to 44,158 from the previous 38,046 contracts, marking an increase of 6,112 contracts or 16.06%. This expansion in OI is significant as it indicates fresh capital inflows and increased commitment from market participants rather than mere position unwinding. The accompanying volume of 22,133 contracts further underscores active trading interest, supporting the notion of sustained investor engagement.

The futures segment alone accounted for a value of approximately ₹97,871 lakhs, while options contracts contributed a staggering ₹11,810.02 crores in notional value, culminating in a total derivatives market value of nearly ₹98,807 lakhs. Such substantial figures highlight Polycab’s prominence in the derivatives market and the growing appetite for its stock among traders and institutional investors alike.

Price Performance and Technical Indicators

Polycab’s underlying stock price closed at ₹7,821, just 1.57% shy of its 52-week high of ₹7,948, signalling strong price momentum. The stock has outperformed its sector by 1.16% on the day, while the broader Sensex and sector indices declined by 0.94% and 1.22% respectively. This relative strength amidst a weak market backdrop suggests robust demand and positive sentiment towards Polycab.

Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — reinforcing a bullish trend. The recent delivery volume of 1.05 lakh shares on 18 Feb 2026 surged 45.23% above the five-day average, indicating rising investor participation and conviction in the stock’s upward trajectory.

Market Positioning and Directional Bets

The sharp rise in open interest combined with increasing volumes and price strength points to a build-up of long positions by traders anticipating further upside. The derivatives market data suggests that investors are positioning for a sustained rally, possibly driven by expectations of strong earnings, favourable industry trends, or positive policy developments in the electrical cables sector.

Polycab’s mojo score of 71.0 and an upgraded mojo grade from Hold to Buy as of 21 Jul 2025 further validate the stock’s improving fundamentals and technical outlook. The company’s large-cap status with a market capitalisation of ₹1,17,767.29 crores adds to its appeal as a stable yet growth-oriented investment option within the cables - electricals sector.

Sector Context and Comparative Analysis

Within the cables - electricals sector, Polycab India Ltd stands out due to its consistent operational performance and strategic market positioning. The sector has been witnessing steady demand growth driven by infrastructure development, urbanisation, and increased electrification efforts across India. Polycab’s ability to maintain a mojo grade of Buy with a mojo score of 71.0 reflects its superior fundamentals relative to peers.

Its market cap grade of 1 indicates a large-cap stature, which typically offers greater liquidity and stability, making it a preferred choice for institutional investors. The stock’s liquidity profile supports sizeable trade volumes, with the current liquidity allowing for trade sizes up to ₹2.15 crores based on 2% of the five-day average traded value, ensuring ease of entry and exit for market participants.

Risks and Considerations

Despite the positive signals, investors should remain cautious of broader market volatility and sector-specific headwinds such as raw material price fluctuations and regulatory changes. The stock’s one-day return of -0.10% contrasts with its sector’s decline of -1.22%, indicating relative resilience but also highlighting short-term price fluctuations that may arise from profit booking or external factors.

Moreover, while the open interest surge suggests bullish positioning, it is essential to monitor whether this trend sustains or reverses in the coming sessions, as derivatives markets can be prone to rapid shifts based on macroeconomic news or earnings announcements.

Outlook and Investment Implications

Given the current data, Polycab India Ltd appears well-positioned for further gains in the near term. The combination of rising open interest, strong volume, and price momentum near all-time highs suggests that investors are increasingly confident in the company’s growth prospects. The upgrade in mojo grade to Buy reinforces this positive outlook, signalling improved fundamentals and technical strength.

Investors looking to capitalise on this trend should consider the stock’s liquidity and relative strength within the sector, while also keeping an eye on broader market conditions and any sector-specific developments that could impact performance. The derivatives market activity provides a useful barometer of sentiment and can serve as an early indicator of directional moves.

In conclusion, Polycab India Ltd’s recent surge in open interest and sustained volume growth highlight a bullish market stance, supported by solid fundamentals and technical indicators. This makes it a compelling candidate for investors seeking exposure to the cables - electricals sector with a large-cap, growth-oriented stock.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →