Open Interest and Volume Dynamics
On 19 Feb 2026, Polycab India Ltd’s open interest (OI) in futures and options contracts rose sharply to 42,560 contracts from the previous 38,046, marking an increase of 4,514 contracts or 11.86%. This expansion in OI is accompanied by a futures volume of 15,181 contracts, indicating heightened trading activity and fresh positions being established rather than merely offsetting existing ones.
The total notional value of futures contracts stood at approximately ₹72,681 lakhs, while options contracts commanded an overwhelming ₹7,506.99 crores in value, underscoring the significant derivatives market interest in Polycab. The combined derivatives value touched ₹73,200 lakhs, reflecting robust liquidity and investor engagement.
Price Performance and Technical Positioning
Polycab’s underlying stock price closed at ₹7,801, just 1.84% shy of its 52-week high of ₹7,948, signalling strong price momentum. Despite a minor 0.28% dip on the day, the stock outperformed its sector, which declined by 0.90%, and the broader Sensex, which fell 0.56%. The stock has been on a modest upward trajectory, gaining 0.33% over the last trading day, supported by rising investor participation.
Technically, Polycab is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating a sustained bullish trend. The delivery volume on 18 Feb surged to 1.05 lakh shares, a 45.23% increase over the five-day average, highlighting strong investor conviction and accumulation.
Market Positioning and Directional Bets
The surge in open interest alongside rising volumes and price strength suggests that market participants are increasingly positioning for an upward move in Polycab’s shares. The increase in OI is typically interpreted as fresh money entering the market, signalling confidence in the stock’s near-term prospects.
Given the stock’s proximity to its 52-week high and its outperformance relative to the sector, investors appear to be taking directional bets anticipating continued momentum. The derivatives market activity, especially the sizeable options value, points to strategic hedging and speculative plays, possibly leveraging volatility expectations around upcoming earnings or sector developments.
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Fundamental Strength and Market Capitalisation
Polycab India Ltd, a leader in the electrical cables industry, boasts a large market capitalisation of ₹1,17,548.99 crores, reflecting its dominant position and investor trust. The company’s Mojo Score stands at a robust 71.0, with a recent upgrade in its Mojo Grade from Hold to Buy on 21 Jul 2025, signalling improved fundamentals and growth prospects.
The company’s market cap grade is rated 1, indicating its classification as a large-cap stock with stable financial metrics and consistent earnings growth. This upgrade aligns with the observed surge in derivatives activity, as institutional and retail investors alike recalibrate their portfolios to capitalise on Polycab’s growth trajectory.
Sectoral Context and Comparative Performance
Within the Cables - Electricals sector, Polycab has outperformed peers, with its 1-day return of -0.28% surpassing the sector’s decline of -0.90%. This relative strength is a positive indicator for investors seeking exposure to the electrical infrastructure space, which is poised for growth amid rising industrial and residential demand.
The company’s consistent gains and strong delivery volumes suggest that investor confidence remains high, supported by favourable industry dynamics and government infrastructure initiatives.
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Implications for Investors and Outlook
The recent spike in open interest and volume in Polycab’s derivatives market is a clear signal of increased investor interest and confidence in the stock’s near-term upside potential. The combination of strong fundamentals, technical strength, and sector tailwinds makes Polycab an attractive proposition for investors seeking growth in the electrical cables space.
However, investors should remain mindful of broader market volatility and sector-specific risks, including raw material price fluctuations and regulatory changes. The stock’s proximity to its 52-week high also warrants cautious optimism, as profit booking could emerge if momentum stalls.
Overall, the upgraded Mojo Grade to Buy and the sustained accumulation in derivatives contracts suggest that Polycab India Ltd is well-positioned for continued appreciation, supported by solid execution and favourable market conditions.
Summary
Polycab India Ltd’s derivatives market activity reveals a significant increase in open interest and trading volumes, reflecting fresh bullish positioning by investors. The stock’s technical strength, coupled with strong fundamentals and sector outperformance, underpins a positive outlook. With a large market cap and improved Mojo Grade, Polycab remains a compelling stock for investors seeking exposure to the growing electrical cables industry.
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