Open Interest Spike and Volume Dynamics
On 25 Feb 2026, POWERGRID's open interest in derivatives rose sharply by 7,967 contracts, a 15.36% increase from the previous day's 51,854 to 59,821. This notable expansion in OI coincided with a futures volume of 48,007 contracts, reflecting strong participation in the derivatives market. The combined futures and options value stood at approximately ₹45,333.44 lakhs, with futures contributing ₹40,001.72 lakhs and options an overwhelming ₹24,982.72 crores, underscoring the stock's liquidity and active trading interest.
The underlying stock price closed at ₹305, having touched an intraday high of ₹311.7, marking a 2.26% gain on the day. This price action outpaced the Power sector's marginal decline of 0.05% and the Sensex's modest 0.18% rise, highlighting POWERGRID's relative strength. The stock has recorded gains for four consecutive sessions, accumulating a 4.04% return over this period, signalling sustained bullish momentum.
Investor Participation and Delivery Volumes
Investor engagement has intensified, as evidenced by the delivery volume of 88.43 lakh shares on 24 Feb, which surged 35.22% above the five-day average. This rise in delivery volume indicates genuine buying interest rather than speculative intraday trading, reinforcing the conviction behind the recent price rally. Additionally, POWERGRID is trading above all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—further validating the positive technical setup.
Liquidity remains robust, with the stock capable of supporting trade sizes up to ₹6.98 crore based on 2% of the five-day average traded value. This ample liquidity facilitates smooth execution of large trades, attracting institutional investors and derivatives traders alike.
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Market Positioning and Directional Bets
The surge in open interest alongside rising prices and volumes suggests that market participants are increasingly positioning for an upward move in POWERGRID. The 15.36% jump in OI is indicative of fresh long positions being established rather than short covering, given the concurrent price appreciation. This is further supported by the stock's outperformance relative to its sector and benchmark indices.
Options market data reveals a substantial notional value of ₹24,982.72 crores, reflecting active hedging and speculative activity. The high options premium and volume may point to increased interest in call options, signalling bullish sentiment. Traders appear to be leveraging derivatives to capitalise on expected upside while managing risk exposure.
Fundamental and Technical Assessment
Power Grid Corporation of India Ltd operates in the Power industry with a large-cap market capitalisation of ₹2,84,737.99 crore. The company’s Mojo Score currently stands at 51.0, with a Mojo Grade upgraded to 'Hold' from 'Sell' as of 24 Feb 2026. This upgrade reflects improved fundamentals and technical outlook, although the stock remains in a cautious stance pending further confirmation of trend sustainability.
Technically, the stock's position above all major moving averages and its four-day consecutive gains reinforce a positive medium-term trend. The rising delivery volumes and liquidity further support the case for continued investor interest. However, the modest day change of 0.25% suggests some consolidation after recent gains, warranting close monitoring of price action for breakout confirmation.
Sector and Benchmark Comparison
POWERGRID’s outperformance relative to the Power sector, which declined by 0.05%, and the Sensex’s 0.18% gain, highlights its relative strength in a mixed market environment. This divergence may attract further capital inflows from investors seeking defensive yet growth-oriented large-cap stocks within the infrastructure space.
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Implications for Investors
The recent surge in open interest combined with positive price and volume trends suggests that POWERGRID is attracting renewed investor confidence. The derivatives market activity points to a growing consensus on potential upside, making it a stock to watch for medium-term investors seeking exposure to India’s power transmission sector.
However, the current Mojo Grade of 'Hold' advises caution, indicating that while the stock has improved from a previous 'Sell' rating, it has yet to demonstrate a strong buy signal. Investors should monitor upcoming quarterly results, regulatory developments, and broader market conditions that could influence the stock’s trajectory.
Conclusion
Power Grid Corporation of India Ltd’s sharp increase in open interest and sustained price gains reflect a constructive market outlook. The stock’s liquidity, rising delivery volumes, and technical strength underpin a positive momentum phase. While the upgraded Mojo Grade to 'Hold' signals improving fundamentals, investors should remain vigilant for confirmation of sustained upward trends before committing significant capital.
Overall, the derivatives market activity and underlying price action suggest that POWERGRID is currently favoured by traders positioning for further gains, making it a key large-cap stock to monitor within the Power sector.
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