Key Events This Week
16 Feb: Stock opens strong at Rs.1,085.20 (+1.91%) on robust fundamentals
19 Feb: Significant open interest surge (+14.7%) amid price decline to Rs.1,053.05 (-2.18%)
20 Feb: Another open interest increase (+14.55%) with slight price recovery to Rs.1,059.20 (+0.58%)
16 February: Strong Start on Multibagger Fundamentals
Shriram Finance Ltd began the week on a positive note, closing at Rs.1,085.20, up 1.91% from the previous Friday’s close of Rs.1,064.90. This outperformance contrasted with the Sensex’s 0.70% gain to 36,787.89. The rally was supported by the company’s impressive track record of multibagger returns exceeding 100% over the past year, underpinned by strong fundamentals such as a 14.00% average Return on Equity and robust net sales growth of 22.46% annually. The stock’s valuation metrics, including a P/E ratio of 21.90 slightly below the NBFC sector average, further reinforced investor confidence.
17-18 February: Consolidation Amid Mixed Market Sentiment
On 17 February, the stock retraced 0.96% to Rs.1,074.80, while the Sensex continued its upward trajectory with a 0.32% gain. The following day, 18 February, saw a modest recovery of 0.16% to Rs.1,076.50, marginally outperforming the Sensex’s 0.43% rise. Trading volumes declined during this period, signalling a cautious stance among investors. Despite this, the stock remained well above its key moving averages, maintaining a bullish medium- to long-term technical outlook.
Our latest monthly pick, this Small Cap from Oil Exploration/Refineries, is showing strong performance since announcement! See why our Investment Committee chose it after screening 50+ candidates.
- - Investment Committee approved
- - 50+ candidates screened
- - Strong post-announcement performance
19 February: Open Interest Surges Amid Price Decline
The stock experienced a notable decline of 2.18% to Rs.1,053.05, underperforming the Sensex which fell 1.45%. This drop coincided with a significant 14.7% surge in open interest in the derivatives segment, rising to 81,101 contracts from 70,727 the previous day. Futures volume was robust at 48,823 contracts, with a futures notional value of approximately ₹1,68,745 lakhs and options notional value reaching ₹26,58,970.02 crores. Despite the price dip, the stock remained above its 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained medium- to long-term strength. However, delivery volumes fell sharply by 54.73%, suggesting reduced conviction among long-term holders and increased speculative activity in derivatives.
20 February: Continued Derivatives Activity and Slight Price Recovery
Shriram Finance closed the week at Rs.1,059.20, recovering 0.58% from the previous day’s low. Open interest further increased by 14.55% to 77,363 contracts, with volume at 48,546 contracts. The futures segment’s notional value rose to ₹1,79,126 lakhs, while options contracts accounted for ₹24,704.23 crores. The combined derivatives turnover of ₹1,81,194.36 lakhs underscores the stock’s liquidity and market interest. The price remained just 2.53% below its 52-week high of Rs.1,088.30 and above key moving averages, though slightly below the 5-day average, signalling short-term consolidation. Delivery volumes declined by 46.79%, reinforcing the trend of waning long-term investor participation amid active speculative trading.
Want to dive deeper on Shriram Finance Ltd? There's a real-time research report diving right into the fundamentals, valuations, peer comparison, financials, technicals and much more!
- - Real-time research report
- - Complete fundamental analysis
- - Peer comparison included
Weekly Price Performance: Shriram Finance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.1,085.20 | +1.91% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.1,074.80 | -0.96% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.1,076.50 | +0.16% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.1,053.05 | -2.18% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.1,059.20 | +0.58% | 36,674.32 | +0.41% |
Key Takeaways
Robust Fundamentals Support Long-Term Strength: Shriram Finance’s multibagger returns and strong financial metrics, including a 14.00% ROE and consistent quarterly earnings growth, underpin its sustained market appeal despite short-term price fluctuations.
Derivatives Market Activity Signals Evolving Positioning: The consecutive 14%+ surges in open interest on 19 and 20 February, alongside high futures and options notional values, indicate active speculative and hedging strategies, reflecting market anticipation of potential directional moves.
Short-Term Consolidation Amid Declining Delivery Volumes: The stock’s slight weekly decline contrasts with the Sensex’s gain, partly due to falling delivery volumes suggesting reduced long-term investor participation and increased dominance of short-term traders in derivatives.
Conclusion
Shriram Finance Ltd’s week was characterised by a delicate balance between strong underlying fundamentals and active market repositioning. While the stock closed the week slightly lower by 0.54%, it maintained technical strength above key moving averages and near its 52-week high. The significant open interest surges in derivatives highlight heightened market interest and evolving sentiment, with traders positioning for possible volatility or breakout. Investors should monitor delivery volumes and open interest trends closely to gauge the sustainability of current momentum. Overall, Shriram Finance remains a key NBFC player with robust financials and active market participation, warranting continued attention amid mixed short-term signals.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
