Power Grid Corporation Gains 14.26%: 9 Key Factors Driving the Week’s Rally

2 February 2026: Strong Intraday Rally and Call Option Surge

Power Grid began the week with a notable intraday surge, closing at Rs.270.15, up 5.38% from the previous close. The stock reached an intraday high of Rs.259.75 earlier in the session, outperforming the Power sector and the Sensex, which declined 1.03%. This rebound followed two prior days of declines, signalling renewed buying interest.

Simultaneously, call option activity surged with 14,541 contracts traded at the Rs.260 strike price, just below the underlying price, reflecting bullish sentiment ahead of the 24 February expiry. The total turnover in call options was ₹1,469.8 lakhs, with open interest at 2,292 contracts, indicating sustained investor optimism despite the stock’s Mojo Grade of Sell.

Technically, the stock traded above its 5-day moving average but remained below longer-term averages, suggesting short-term momentum building amid longer-term resistance.

3 February 2026: Exceptional Volume and Institutional Participation

On 3 February, Power Grid extended gains with a 4.85% rise to close at Rs.283.25, hitting an intraday high of Rs.279.95. The stock outperformed the Sensex, which rose 2.63%, and the power sector’s 2.84% gain. Trading volume surged to over 2 crore shares, with delivery volumes increasing by 36.72%, signalling strong institutional accumulation.

Call option activity remained elevated, with 14,417 contracts traded at the Rs.280 strike price and open interest rising to 3,411 contracts. The stock traded above its 5-, 20-, 50-, and 100-day moving averages, indicating strengthening technical momentum, though it remained below the 200-day average.

This day marked a key inflection point, with the stock delivering a cumulative two-day return of 10.89%, reflecting sustained buying interest and positive market sentiment.

4 February 2026: Technical Strength and Institutional Confidence

Power Grid continued its upward trajectory on 4 February, gaining 3.0% to close at Rs.288.05 after touching an intraday high of Rs.291.10. The stock traded above all major moving averages, including the 200-day average, signalling broad-based technical strength. This marked a three-day consecutive gain streak, with a cumulative return of 15.73% over this period.

Trading volume remained robust at 74.78 lakh shares, with delivery volumes surging 122.16% compared to the five-day average, underscoring strong institutional participation. The stock’s market capitalisation rose to ₹2,67,950.40 crore, reinforcing its large-cap status.

Despite the positive price action, the Mojo Score remained at 35.0 with a Sell grade, reflecting cautious quantitative assessments amid improving fundamentals and sector tailwinds.

5 February 2026: Minor Consolidation Amid Lower Volumes

The stock experienced a slight pullback on 5 February, closing marginally lower at Rs.289.25 (-0.03%) on reduced volume of 5.31 lakh shares. This pause followed the strong rally earlier in the week and may represent short-term profit-taking or consolidation before further moves.

Technical indicators remained largely positive, with the stock still trading above key moving averages. The broader market was mixed, with the Sensex declining 0.53%.

6 February 2026: Week Closes on a Positive Note

Power Grid ended the week on a positive note, gaining 1.26% to close at Rs.292.90. The stock maintained its position above key moving averages and outperformed the Sensex, which rose a modest 0.10%. Volume was moderate at 5.75 lakh shares, reflecting steady investor interest.

This close capped a week of strong gains and technical improvement, with the stock outperforming the benchmark by nearly 13 percentage points over the week.

Daily Price Performance Comparison

Key Takeaways

Strong Weekly Outperformance: Power Grid’s 14.26% weekly gain far exceeded the Sensex’s 1.51%, highlighting robust investor demand and positive sentiment.

Elevated Trading Volumes and Institutional Interest: Delivery volumes surged notably, particularly on 3 and 4 February, signalling genuine accumulation by institutional investors rather than speculative trading.

Call Option Activity Indicates Bullish Positioning: Consistent high volumes and open interest in call options at strike prices near the stock’s trading range reflect market expectations of further upside in the near term.

Technical Momentum Building: The stock moved above key moving averages including the 200-day average by midweek, signalling strengthening medium-term technical trends.

Fundamental Caution Persists: Despite price gains, the Mojo Score remains at 35.0 with a Sell grade, indicating that quantitative models still flag valuation or fundamental concerns.

Conclusion

Power Grid Corporation of India Ltd’s performance in the week ending 6 February 2026 was marked by a strong price rally, robust volume growth, and heightened call option activity, underscoring a shift towards bullish investor sentiment. The stock’s ability to outperform the Sensex by a wide margin and trade above critical moving averages reflects improving technical momentum and institutional confidence.

However, the persistent Sell rating from MarketsMOJO and modest Mojo Score suggest that investors should remain cautious and monitor fundamental developments closely. The power sector’s regulatory environment and valuation considerations continue to temper enthusiasm despite the recent price strength.

Overall, Power Grid’s week was defined by five key factors: strong price gains, elevated volumes, active options market participation, technical breakout above key averages, and a cautious fundamental backdrop. These elements combine to present a nuanced picture for investors assessing the stock’s near-term prospects within India’s power infrastructure landscape.

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