Samvardhana Motherson International Sees Sharp Open Interest Surge Amid Bullish Momentum

Open Interest and Volume Dynamics

The latest data reveals that the open interest (OI) in Samvardhana Motherson International Ltd’s futures and options contracts rose sharply by 4,584 contracts, a 10.68% increase from the previous figure of 42,922 to 47,506. This notable expansion in OI coincided with a total volume of 83,983 contracts traded, underscoring active participation from market participants.

In monetary terms, the futures segment alone accounted for a value of approximately ₹1,10,433.55 lakhs, while the options segment exhibited an extraordinary notional value of ₹56,883,458,896 lakhs, culminating in a combined derivatives market value of ₹1,25,533.15 lakhs. These figures highlight the substantial liquidity and interest in the stock’s derivatives, making it a focal point for traders and investors alike.

Price Performance and Technical Indicators

On the price front, Samvardhana Motherson International Ltd outperformed its sector by 2.55% on the day, registering a 4.51% gain and touching an intraday high of Rs 131.89, marking a fresh 52-week peak. The stock has been on a positive trajectory for two consecutive sessions, delivering a cumulative return of 9.58% during this period.

Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong bullish trend. However, it is noteworthy that the weighted average price indicates more volume traded closer to the day’s low, suggesting some profit booking or cautious accumulation near current levels.

Investor Participation and Liquidity Considerations

Despite the bullish price action, delivery volumes have declined by 12.26% compared to the 5-day average, with 69.27 lakh shares delivered on 9 February 2026. This dip in investor participation could imply that short-term traders are driving the recent rally rather than long-term holders increasing their stakes.

Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹4.74 crore based on 2% of the 5-day average traded value. This ensures that institutional and retail investors can transact sizeable volumes without significant market impact.

Market Positioning and Directional Bets

The surge in open interest alongside rising prices typically indicates fresh long positions being established, reflecting bullish sentiment among traders. Given the stock’s outperformance relative to the auto components sector and the broader Sensex, which gained a modest 0.16% on the same day, it is evident that investors are positioning for further upside.

However, the mixed signals from volume distribution and falling delivery volumes suggest some caution. The weighted average price leaning towards the lower end of the day’s range may imply that while traders are optimistic, they are also mindful of potential resistance near the new highs.

Samvardhana Motherson International Ltd’s current Mojo Score stands at 65.0 with a Mojo Grade of Hold, downgraded from Buy on 13 January 2026. This reflects a tempered outlook, balancing the stock’s strong technical momentum against valuation and participation concerns. The company remains a large-cap heavyweight with a market capitalisation of ₹1,36,173.42 crore, anchoring its position in the auto components & equipments sector.

Sector and Benchmark Comparison

Within the auto components sector, Samvardhana Motherson International Ltd’s 1-day return of 3.71% significantly outpaces the sector’s 1.56% gain, underscoring its leadership in recent market moves. This relative strength is a positive indicator for investors seeking exposure to the automotive supply chain, which is poised for growth amid rising vehicle production and electrification trends.

Compared to the Sensex’s marginal 0.16% advance, the stock’s performance highlights its appeal as a growth-oriented large cap. Nonetheless, investors should weigh the recent downgrade and the nuanced derivatives activity before committing fresh capital.

Implications for Investors

For investors and traders, the sharp rise in open interest combined with the stock’s technical strength suggests an opportunity to capitalise on momentum. However, the Hold rating and recent downgrade advise prudence, recommending a balanced approach that monitors volume patterns and delivery participation closely.

Those considering fresh positions should watch for confirmation of sustained buying interest and a stabilisation of delivery volumes to validate the bullish thesis. Conversely, any sharp reversal in open interest or price weakness near current highs could signal profit-taking or a shift in market sentiment.

Given the stock’s liquidity and active derivatives market, it remains a viable candidate for both directional trades and hedging strategies within the auto components sector.

Outlook and Conclusion

Samvardhana Motherson International Ltd’s recent open interest surge and price breakout reflect a market increasingly confident in the company’s prospects amid a recovering automotive industry. While technical indicators and volume data support a bullish stance, the tempered Mojo Grade and falling delivery volumes counsel measured optimism.

Investors should continue to analyse evolving market positioning and sector dynamics, leveraging the stock’s liquidity and derivatives activity to optimise entry and exit points. Overall, the stock remains a key large-cap player to watch in the auto components & equipments space as it navigates near-term volatility and longer-term growth opportunities.

Unlock special upgrade rates for a limited period. Start Saving Now →