Open Interest Spike and Volume Dynamics
The latest data reveals that POWERGRID's open interest (OI) in derivatives rose sharply by 7,361 contracts, a 14.2% increase from the previous tally of 51,854 to 59,215. This notable expansion in OI coincided with a futures volume of 39,666 contracts, reflecting active participation in the derivatives market. The combined futures and options value stands at approximately ₹3,70,58.88 lakhs, with futures contributing ₹32,556.66 lakhs and options an overwhelming ₹20,720,481.65 lakhs, underscoring the stock's liquidity and interest among options traders.
Such a surge in open interest, coupled with rising volumes, often indicates fresh capital inflows and new positions being established rather than mere unwinding of existing trades. This pattern suggests that market participants are increasingly positioning themselves for potential directional moves in POWERGRID’s stock price.
Price Performance and Moving Averages
POWERGRID has demonstrated consistent strength in its price action, gaining 0.64% on the day and outperforming the power sector by 0.46%. The stock has recorded four consecutive days of gains, accumulating a 4.04% return over this period. Intraday, it touched a high of ₹311.7, marking a 2.26% rise from previous levels.
Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained uptrend and positive momentum. This technical backdrop supports the notion that the recent open interest surge is aligned with bullish market sentiment.
Investor Participation and Delivery Volumes
Investor engagement has also intensified, as evidenced by the delivery volume of 88.43 lakh shares on 24 Feb 2026, which is 35.22% higher than the five-day average delivery volume. This rise in delivery volumes indicates that investors are not merely trading intraday but are willing to hold positions, reinforcing confidence in the stock’s prospects.
Liquidity remains robust, with the stock capable of handling trade sizes up to ₹6.98 crore based on 2% of the five-day average traded value, making it an attractive option for institutional and retail investors alike.
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Market Positioning and Directional Bets
The surge in open interest alongside rising prices and volumes suggests that traders are increasingly adopting bullish stances on POWERGRID. The stock’s mojo score has improved to 51.0, upgrading its mojo grade from Sell to Hold as of 24 Feb 2026, reflecting a more neutral to positive outlook from market analysts. Despite this upgrade, the market cap grade remains at 1, indicating that while the stock is a large-cap heavyweight with a market capitalisation of ₹2,85,203.02 crore, it is still viewed with cautious optimism.
Options market activity, with an options value exceeding ₹20,720 crore, points to significant hedging and speculative interest. The elevated open interest in options could imply that investors are positioning for a potential breakout or sustained rally, while also managing downside risks through protective puts or spread strategies.
Sector and Benchmark Comparison
POWERGRID’s 1-day return of 0.61% marginally outpaces the Sensex’s 0.64% gain and comfortably exceeds the power sector’s 0.16% rise, highlighting its relative strength within the sector. This outperformance, combined with technical and volume indicators, suggests that the stock is attracting fresh capital inflows amid a broader market rally.
Given the power sector’s critical role in India’s infrastructure and the government’s ongoing focus on power transmission and grid modernisation, POWERGRID remains a key beneficiary of structural growth trends. The recent derivatives activity may be reflecting investor anticipation of positive developments in regulatory policies, tariff revisions, or capital expenditure plans.
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Outlook and Investor Considerations
While the recent surge in open interest and price momentum is encouraging, investors should remain mindful of broader market volatility and sector-specific risks such as regulatory changes, interest rate fluctuations, and capital expenditure cycles. The mojo grade of Hold suggests a balanced view, with neither strong buy nor sell signals prevailing at present.
Investors may consider monitoring the stock’s price action relative to key moving averages and open interest trends in the coming sessions to gauge the sustainability of the current rally. Additionally, tracking delivery volumes and institutional participation can provide further insights into the conviction behind the recent uptrend.
Overall, Power Grid Corporation of India Ltd appears well-positioned within the power sector, supported by improving market sentiment and active derivatives positioning. The stock’s liquidity and consistent gains over recent days make it a noteworthy candidate for investors seeking exposure to India’s power infrastructure theme.
Summary
In summary, the sharp increase in open interest by 14.2% alongside rising volumes and price gains signals a growing bullish bias in Power Grid Corporation of India Ltd. The stock’s technical strength, improved mojo grade, and robust delivery volumes underpin this positive momentum. However, investors should weigh these factors against sectoral and macroeconomic risks before making allocation decisions.
As the derivatives market continues to reflect evolving investor sentiment, POWERGRID remains a key large-cap stock to watch within the power sector landscape.
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