Open Interest and Volume Dynamics
The latest data reveals that open interest (OI) in Solar Industries India Ltd’s futures and options contracts rose from 30,123 to 33,321 contracts, an increase of 3,198 contracts or 10.62% on 4 February 2026. This surge in OI was accompanied by a volume of 28,597 contracts, indicating robust trading activity. The futures segment alone accounted for a value of approximately ₹22,290 lakhs, while the options segment’s notional value was substantially higher, reflecting intense speculative and hedging interest.
Such a rise in OI, coupled with strong volume, often points to fresh positions being initiated rather than existing ones being squared off. This can be interpreted as increased conviction among market participants regarding the stock’s near-term price trajectory.
Price Performance and Market Context
On the price front, Solar Industries India Ltd underperformed its sector by 0.53% on the day, closing with a 1D return of -0.62%, while the sector and Sensex posted marginal gains of 0.01% and 0.05% respectively. The stock touched an intraday high of ₹14,130, up 2.44%, before retreating. Notably, the stock remains above its 5-day, 20-day, 50-day, and 100-day moving averages but below the 200-day moving average, indicating a mixed technical picture with potential resistance at longer-term levels.
Investor participation has been rising, as evidenced by a delivery volume of 1.36 lakh shares on 3 February, which surged 62.39% above the five-day average. This heightened delivery volume suggests genuine accumulation by investors rather than purely speculative trading.
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Market Positioning and Directional Bets
The increase in open interest alongside rising volumes and a slight price dip suggests a nuanced market stance. Typically, a rising OI with falling prices can indicate fresh short positions or protective hedging by longs. However, the strong delivery volumes and the stock’s technical positioning above key short-term moving averages imply that institutional investors may be accumulating shares, possibly anticipating a medium-term rebound.
Options data, with a notably high notional value, points to active call and put writing, which could be indicative of traders employing strategies such as spreads or straddles to capitalise on expected volatility. The underlying value of ₹13,710 and the futures value of ₹22,290 lakhs further highlight the significant capital flow in the derivatives market for this stock.
Mojo Score and Analyst Ratings
Solar Industries India Ltd currently holds a Mojo Score of 61.0, categorised as a 'Hold' grade, a downgrade from its previous 'Buy' rating on 17 November 2025. This reflects a cautious stance by analysts, balancing the company’s strong fundamentals and market position against recent price volatility and sectoral headwinds. The market cap grade remains at 1, underscoring its status as a large-cap stock with substantial liquidity and institutional interest.
Given the stock’s recent underperformance relative to its sector and the Sensex, alongside the mixed technical signals, investors are advised to monitor open interest trends closely. A sustained increase in OI with price recovery could signal renewed bullish momentum, while a further decline in price with rising OI might indicate strengthening bearish sentiment.
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Sector and Industry Context
Operating within the Other Chemical products sector, Solar Industries India Ltd is a key player with a market capitalisation of ₹1,25,827 crores, categorised as a large-cap stock. The sector has shown resilience amid fluctuating raw material costs and regulatory changes, but individual stock performance varies based on company-specific factors and market sentiment.
Solar Industries’ recent price action and derivatives activity should be viewed in the context of broader sector trends, including demand fluctuations and input cost pressures. The stock’s ability to maintain levels above short- and medium-term moving averages suggests underlying strength, though the resistance at the 200-day moving average remains a critical hurdle for sustained upside.
Investor Takeaways and Outlook
For investors, the current surge in open interest presents both opportunities and risks. The increased derivatives activity signals that market participants are positioning for potential volatility, with mixed directional bets evident. Those bullish on Solar Industries India Ltd may view the rising delivery volumes and technical support as encouraging signs for accumulation, especially if accompanied by a breakout above the 200-day moving average.
Conversely, cautious investors should watch for any sustained price weakness alongside rising open interest, which could indicate growing bearish sentiment or hedging activity. Given the recent downgrade to a 'Hold' rating and the stock’s underperformance relative to its sector, a measured approach with close monitoring of market signals is advisable.
Overall, the derivatives market activity underscores the importance of analysing open interest and volume patterns in conjunction with price action to gauge market sentiment and potential directional moves in Solar Industries India Ltd.
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