Open Interest and Volume Dynamics
On 24 February 2026, POWERGRID's open interest (OI) in derivatives rose sharply by 7,953 contracts, a 15.34% increase from the previous OI of 51,854 to 59,807. This notable expansion in OI accompanied a volume of 49,696 contracts, indicating heightened trading activity and fresh positions being established rather than merely unwinding existing ones.
The futures segment alone accounted for a value of approximately ₹41,922.75 lakhs, while the options segment's notional value stood at an impressive ₹25,799.28 crores, culminating in a total derivatives value of ₹47,391.28 lakhs. Such figures underscore the substantial liquidity and interest in POWERGRID's derivatives, reflecting its status as a large-cap stock with a market capitalisation of ₹2,84,691.48 crores.
Price Performance and Moving Averages
POWERGRID has been on a steady upward trajectory, gaining 3.85% over the past four consecutive trading sessions. On the day in focus, the stock touched an intraday high of ₹311.7, marking a 2.26% rise from its previous close. This outperformance is notable against the power sector's 0.28% decline and the Sensex's modest 0.22% gain, highlighting the stock's relative strength.
Technically, POWERGRID is trading above its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend. Such alignment of moving averages often attracts momentum traders and institutional investors, further reinforcing the positive sentiment.
Investor Participation and Liquidity
Investor participation has also risen markedly, with delivery volumes reaching 88.43 lakh shares on 24 February, a 35.22% increase compared to the five-day average delivery volume. This suggests that investors are not only trading the stock intraday but are also willing to hold positions, indicating confidence in the stock's medium-term prospects.
Liquidity remains robust, with the stock supporting trade sizes of up to ₹6.98 crores based on 2% of the five-day average traded value. Such liquidity is crucial for institutional players and large traders looking to build or exit sizeable positions without significant price impact.
Perfect timing to enter! This Small Cap from IT - Software just turned profitable with growth momentum clearly building up. Get in before the broader market notices!
- - New profitability achieved
- - Growth momentum building
- - Under-the-radar entry
Market Positioning and Potential Directional Bets
The surge in open interest combined with rising volumes and price gains suggests that market participants are positioning for further upside in POWERGRID. The increase in OI typically indicates fresh long positions being added rather than short covering, especially when accompanied by price appreciation.
Given the stock's current underlying value of ₹306 and its recent intraday high of ₹311.7, traders may be anticipating a breakout above resistance levels, supported by strong fundamentals and sector tailwinds. The power sector, despite some volatility, remains critical to India's infrastructure growth, and POWERGRID's dominant market position as a transmission utility lends it defensive qualities.
Moreover, the Mojo Score for POWERGRID stands at 51.0, reflecting a Hold rating, upgraded from a previous Sell on 24 February 2026. This upgrade indicates improving fundamentals and technicals, though the stock is yet to reach a strong buy consensus. The market cap grade of 1 confirms its large-cap status, which typically attracts steady institutional flows.
Comparative Sector and Benchmark Analysis
While the power sector index declined by 0.28% on the day, POWERGRID's 0.43% gain highlights its relative outperformance. The Sensex's modest 0.22% rise further emphasises the stock's strength within the broader market context. Such divergence often signals stock-specific positive developments or investor preference shifting towards quality large caps amid sector weakness.
Investors should note that the stock's consistent gains over four sessions and its positioning above all major moving averages suggest a sustained bullish trend. However, the Hold Mojo Grade advises caution, recommending monitoring for confirmation of trend continuation or potential profit booking.
Considering Power Grid Corporation of India Ltd? Wait! SwitchER has found potentially better options in Power and beyond. Compare this large-cap with top-rated alternatives now!
- - Better options discovered
- - Power + beyond scope
- - Top-rated alternatives ready
Outlook and Investor Takeaways
Power Grid Corporation of India Ltd's recent surge in derivatives open interest and accompanying price strength reflect a positive shift in market sentiment. The stock's ability to outperform its sector and maintain gains above key moving averages suggests that investors are increasingly confident in its growth prospects and defensive qualities.
However, the Hold Mojo Grade and moderate Mojo Score of 51.0 indicate that while the stock is improving, it may not yet be a compelling buy for all investors. Market participants should watch for sustained volume support and further price confirmation before committing significant capital.
Given the stock's liquidity and large-cap stature, it remains an attractive option for institutional investors seeking exposure to India's power transmission sector. The recent upgrade from Sell to Hold signals a potential turning point, but investors should remain vigilant for any sector headwinds or broader market volatility that could impact momentum.
In summary, the sharp increase in open interest and volume, combined with positive price action and technical indicators, point towards a constructive near-term outlook for POWERGRID. Investors with a medium to long-term horizon may consider accumulating on dips while monitoring key support levels and sector developments.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
