Open Interest and Volume Dynamics
The latest data reveals that Polycab’s open interest rose by 4,272 contracts from the previous 38,442, marking a substantial 11.11% increase. This expansion in OI is accompanied by a futures volume of 31,639 contracts, indicating robust trading activity. The futures value stands at ₹1,31,657.49 lakhs, while the options segment commands an overwhelming ₹17,599.47 crores in notional value, underscoring the stock’s prominence in the derivatives market.
Such a surge in open interest typically signals fresh positions being established rather than existing ones being squared off, pointing to increased conviction among traders. The underlying stock price closed at ₹7,835, just 1.23% shy of its 52-week high of ₹7,948, reinforcing the bullish undertone in the market.
Price and Moving Average Trends
Polycab India is currently trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — a technical indicator of sustained upward momentum. Despite underperforming its sector by 0.51% on the day, the stock’s 1-day return of 0.97% outpaced the Sensex’s 0.42% gain, highlighting relative strength within the broader market context.
Investor participation has also intensified, with delivery volumes on 19 February reaching 1.34 lakh shares, a 66.72% increase over the 5-day average delivery volume. This rise in delivery volume suggests genuine accumulation rather than speculative trading, which often accompanies derivative activity.
Market Capitalisation and Liquidity
As a large-cap entity with a market capitalisation of ₹1,18,233.99 crores, Polycab India commands significant investor attention. The stock’s liquidity profile is robust, with the ability to handle trade sizes of approximately ₹2.51 crores based on 2% of the 5-day average traded value. This liquidity ensures that institutional investors can enter or exit positions without undue price impact, further supporting the observed open interest growth.
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Directional Bets and Market Positioning
The increase in open interest alongside rising volumes and price near all major moving averages suggests that market participants are positioning for a potential upside. The 11.11% jump in OI is significant in the context of Polycab’s derivatives market, indicating that fresh long positions are likely being built rather than short covering.
Options market data, with an astronomical notional value of ₹17,599.47 crores, further supports the notion of active hedging and speculative strategies. The elevated options value relative to futures suggests that traders are employing complex strategies, possibly including call buying and put selling, to capitalise on anticipated bullish momentum.
Given Polycab’s leadership in the cables and electricals sector, the current market positioning may reflect optimism about the company’s growth prospects amid infrastructure expansion and increased electrification demand across India.
Mojo Score Upgrade and Analyst Sentiment
MarketsMOJO has upgraded Polycab India’s Mojo Grade from Hold to Buy as of 21 July 2025, reflecting improved fundamentals and positive technical signals. The stock’s Mojo Score stands at a robust 78.0, signalling strong buy sentiment. This upgrade aligns with the recent surge in open interest and price momentum, reinforcing the bullish outlook.
Investors should note that the stock’s market cap grade is 1, indicating a large-cap classification with stable financial metrics and liquidity. The upgrade from Hold to Buy suggests that analysts foresee sustained earnings growth and favourable market conditions supporting the stock’s valuation.
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Implications for Investors
The confluence of rising open interest, strong volume, and price action near all major moving averages suggests that Polycab India is attracting renewed investor interest. For traders, the elevated derivatives activity signals potential volatility and opportunity to capitalise on directional moves.
Long-term investors may view the upgrade in Mojo Grade and the company’s large-cap status as validation of its growth trajectory and market leadership. However, the stock’s slight underperformance relative to its sector on the day indicates that caution is warranted, and investors should monitor broader sector trends and macroeconomic factors impacting the electrical cables industry.
Overall, the data points to a positive market stance on Polycab India, with fresh capital inflows and strategic positioning likely to support further price appreciation in the near term.
Technical and Fundamental Outlook
Technically, Polycab’s trading above all key moving averages and proximity to its 52-week high of ₹7,948 suggests strong momentum. The stock’s ability to sustain above these levels will be critical for confirming a breakout and attracting further buying interest.
Fundamentally, the company’s leadership in the cables sector, combined with a large market capitalisation of ₹1,18,233.99 crores, provides a solid base for growth. The upgrade in Mojo Grade to Buy reflects improved earnings prospects and operational performance, which should underpin investor confidence.
Investors should also consider the broader sectoral trends, including infrastructure spending and electrification initiatives, which are likely to drive demand for Polycab’s products over the medium to long term.
Conclusion
Polycab India Ltd’s recent surge in open interest and volume in the derivatives market, coupled with strong price momentum and an upgraded analyst rating, signals a bullish market outlook. The stock’s liquidity and large-cap status make it an attractive option for both institutional and retail investors seeking exposure to the cables and electricals sector.
While short-term volatility cannot be ruled out, the prevailing market positioning and fundamental backdrop suggest that Polycab is well placed to capitalise on growth opportunities ahead. Investors should continue to monitor open interest trends and price action for confirmation of sustained directional moves.
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