Open Interest and Volume Dynamics
The latest data reveals that POWERGRID’s open interest in futures and options contracts rose sharply by 6,996 contracts, a 13.49% increase from the previous tally of 51,854 to 58,850. This notable expansion in OI is accompanied by a robust volume of 35,519 contracts traded, underscoring active participation from market participants. The futures value stands at ₹29,196.77 lakhs, while the options segment commands an overwhelming ₹18,568.15 crores in notional value, culminating in a total derivatives value of approximately ₹33,282.67 lakhs.
Such a pronounced rise in open interest, especially when paired with elevated volumes, often indicates fresh capital inflows and new positions being established rather than mere unwinding of existing trades. This pattern typically reflects increased conviction among traders about the stock’s near-term trajectory.
Price Performance and Technical Positioning
POWERGRID has outperformed its sector by 0.3% today and has recorded gains for four consecutive sessions, delivering a cumulative return of 4.06% over this period. The stock touched an intraday high of ₹311.70, marking a 2.26% rise on the day. Notably, it is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong technical uptrend and sustained buying interest.
Investor participation has also surged, with delivery volumes on 24 Feb reaching 88.43 lakh shares, a 35.22% increase compared to the five-day average. This rise in delivery volume suggests that investors are not merely trading on a speculative basis but are increasingly holding shares, reinforcing the bullish sentiment.
Market Capitalisation and Liquidity Considerations
As a large-cap entity with a market capitalisation of ₹2,87,342 crore, POWERGRID remains a key player in the power sector. Its liquidity profile is 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 liquidity ensures that institutional investors can enter or exit positions without significant price impact, further encouraging active participation in the derivatives market.
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Interpreting the Open Interest Surge: Directional Bets and Market Positioning
The 13.49% increase in open interest, alongside rising volumes and price appreciation, suggests that traders are predominantly taking fresh long positions in POWERGRID derivatives. This is indicative of a bullish consensus, with market participants anticipating further upside potential in the stock.
Given the stock’s outperformance relative to the power sector and the broader Sensex, which gained 0.82% on the same day, the derivatives activity may be reflecting expectations of continued sectoral strength driven by favourable regulatory developments or robust earnings outlooks.
Moreover, the stock’s mojo score has improved to 51.0, upgrading its mojo grade from Sell to Hold as of 24 Feb 2026. This upgrade reflects a stabilisation in fundamentals and technicals, which likely underpins the increased confidence among traders and investors alike.
Risk Factors and Market Sentiment
Despite the positive momentum, investors should remain cautious given the stock’s modest day change of 0.61% and the broader market volatility. The power sector is subject to regulatory risks, tariff revisions, and macroeconomic factors such as fuel price fluctuations and demand cycles, which could impact future performance.
Additionally, while the rising open interest signals fresh positioning, it is essential to monitor whether this interest sustains or reverses in the coming sessions, as sudden unwinding could trigger volatility.
Outlook and Strategic Implications for Investors
For investors and traders, the current derivatives activity in POWERGRID offers a window into market expectations. The combination of rising open interest, strong volume, and technical strength suggests a favourable environment for bullish strategies, including long futures or call option positions.
However, given the stock’s Hold mojo grade and the inherent sector risks, a balanced approach with defined risk management is advisable. Investors may consider monitoring key support levels around ₹300 and resistance near the recent high of ₹312 to gauge momentum sustainability.
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Conclusion
The surge in open interest for Power Grid Corporation of India Ltd’s derivatives contracts, combined with strong volume and positive price action, reflects a growing bullish sentiment among market participants. The stock’s technical positioning above key moving averages and improved mojo grade further support this outlook.
While the power sector’s inherent risks warrant caution, the current market positioning suggests that investors are optimistic about POWERGRID’s near-term prospects. Monitoring open interest trends alongside price action will be crucial to assess the durability of this momentum.
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