Power Grid Corporation Gains 4.00%: 6 Key Factors Driving the Weekly Momentum

16 February: Strong Intraday Rally and Robust Trading Activity

Power Grid Corporation began the week on a strong note, surging 4.45% to close at Rs.300.20, significantly outperforming the Sensex’s 0.70% gain. The stock touched an intraday high of Rs.299.8, marking a 4.39% rise from the previous close. This rally was supported by a substantial traded volume of 2.92 million shares and a traded value of approximately ₹3,107.6 crores, placing the stock among the most actively traded by value on the day.

Institutional interest was evident, although delivery volumes declined by 28.09% compared to the five-day average, suggesting that short-term traders and institutions were driving the momentum rather than long-term holders. Technically, the stock traded above all key moving averages, signalling positive momentum across multiple time horizons. The surge in call option activity, particularly at the ₹295 strike ahead of the 24 February expiry, further underscored bullish positioning among market participants.

18 February: Mixed Technical Momentum Signals Amid Sideways Consolidation

After the initial rally, Power Grid’s price movement on 18 February was more subdued, closing marginally higher at Rs.300.80 (+0.20%). The stock exhibited a shift from a mildly bearish to a sideways technical trend, reflecting a consolidation phase. Key indicators such as MACD and RSI presented mixed signals: weekly MACD was mildly bullish while monthly MACD remained bearish, and the weekly RSI suggested some short-term selling pressure.

Bollinger Bands indicated expanding volatility with a bullish bias on weekly charts but a mildly bearish stance on monthly charts. Daily moving averages remained mildly bearish, highlighting near-term caution. Despite this, the stock’s relative performance remained strong, outperforming the Sensex across multiple timeframes, including a 16.93% gain over one month versus a flat Sensex.

20 February: Sharp Open Interest Surge and Mixed Technical Signals

On the final trading day of the week, Power Grid’s price closed at Rs.298.90, up 1.44% from the previous day, continuing its outperformance relative to the Sensex’s 0.41% gain. The stock reached an intraday high of Rs.302.05, a 2.51% increase from the prior close, supported by a significant 11.53% surge in open interest in the derivatives segment. Futures and options combined notional value exceeded ₹42,800 crores, reflecting strong liquidity and active market participation.

Despite this positive price action, delivery volumes declined sharply by 46.54% compared to the five-day average, indicating that speculative and short-term trading dominated over physical accumulation. Technical momentum shifted from sideways to mildly bearish, with daily moving averages turning negative and monthly MACD confirming weakening longer-term momentum. However, weekly indicators such as OBV and KST remained mildly bullish, suggesting some underlying accumulation and short-term resilience.

Daily Price Performance vs Sensex: 16–20 February 2026

Key Takeaways

Outperformance and Momentum: Power Grid Corporation outpaced the Sensex by a wide margin, gaining 4.00% versus the benchmark’s 0.39% rise. The stock’s ability to sustain prices above key moving averages and reach intraday highs near Rs.300 reflects strong technical momentum.

Derivatives Activity Signals Bullish Sentiment: The surge in call option volumes and a sharp 11.5% increase in open interest indicate heightened bullish positioning ahead of the February expiry. This suggests traders anticipate further upside, although delivery volumes indicate caution among long-term holders.

Mixed Technical Indicators: The week saw a transition from bullish to sideways and mildly bearish technical signals, with weekly indicators showing pockets of strength while monthly charts and daily averages suggest caution. This mixed technical landscape points to potential near-term volatility and consolidation.

Dividend Yield and Market Capitalisation: The stock’s attractive dividend yield of approximately 3.1% continues to appeal to income-focused investors. Its large market capitalisation of over ₹2.7 lakh crores supports liquidity and institutional interest.

Mojo Score and Rating: Despite recent price gains, the Mojo Score remains modest at 35.0 with a Sell rating, upgraded from Strong Sell in late 2024. This reflects ongoing fundamental caution amid positive technical developments.

Conclusion

Power Grid Corporation of India Ltd demonstrated a resilient and generally positive performance during the week of 16–20 February 2026, with a 4.00% price gain that notably outpaced the Sensex. The week was characterised by strong intraday rallies, robust derivatives market activity, and a complex technical picture that blends bullish momentum with cautionary signals. While the surge in open interest and call option volumes points to renewed optimism, the decline in delivery volumes and mixed technical indicators counsel prudence.

Investors should monitor upcoming market developments, including expiry outcomes and sectoral trends, to better gauge the sustainability of the current momentum. The stock’s attractive dividend yield and large-cap status continue to underpin its appeal, but the modest Mojo Score and mixed technical signals suggest a balanced approach is warranted in the near term.

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