Open Interest and Volume Dynamics
On 24 Feb 2026, Sun Pharma’s open interest (OI) in derivatives rose sharply by 14,227 contracts, marking a 10.78% increase from the previous day’s 131,919 to 146,146. This substantial rise in OI is accompanied by a futures volume of 66,397 contracts, reflecting heightened trading activity. The futures value stood at ₹1,77,132.22 lakhs, while the options segment exhibited an enormous notional value of ₹22,67,85,89,923 lakhs, underscoring the stock’s prominence in the derivatives market.
The underlying stock price closed at ₹1,742, maintaining a steady upward trajectory. Notably, the stock has outperformed its Pharmaceuticals & Biotechnology sector by 0.49% on the day, while the Sensex declined by 1.35%, highlighting relative strength in a broadly negative market environment.
Market Positioning and Investor Behaviour
Sun Pharma has been on a three-day consecutive gain streak, delivering a cumulative return of 1.57%. The stock is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a robust uptrend and positive technical momentum. This technical strength is further supported by a significant rise in delivery volume, which surged by 81.6% to 14.61 lakh shares on 23 Feb compared to the five-day average, indicating strong investor participation and conviction in the stock’s prospects.
Liquidity remains ample, with the stock’s traded value supporting a trade size of approximately ₹4.63 crore based on 2% of the five-day average traded value. This liquidity ensures that institutional and retail investors can execute sizeable trades without significant market impact.
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Implications of the Open Interest Surge
The 10.78% increase in open interest suggests fresh positions are being established rather than existing ones being squared off. This typically indicates that traders are taking new directional bets, often anticipating a continuation of the current trend. Given the stock’s recent gains and technical strength, it is plausible that the majority of these positions are bullish in nature.
Moreover, the combination of rising OI and volume often precedes significant price moves. The fact that Sun Pharma’s futures and options market values are substantial points to active hedging and speculative interest, which can amplify price volatility in the near term.
Mojo Score Upgrade and Market Sentiment
Reflecting these positive developments, Sun Pharmaceutical Industries Ltd’s Mojo Score has been upgraded to 72.0, with the Mojo Grade moving from Hold to Buy as of 23 Feb 2026. This upgrade underscores improved fundamentals and technical outlook, signalling enhanced confidence among analysts and investors alike.
The company’s large-cap status with a market capitalisation of ₹4,17,004.42 crore further supports its appeal as a stable yet growth-oriented investment within the Pharmaceuticals & Biotechnology sector.
Comparative Performance and Sector Context
While the broader Sensex declined by 1.35% on the day, Sun Pharma’s 0.33% gain and sector outperformance by 0.49% highlight its defensive qualities and relative strength amid market volatility. This resilience is critical for investors seeking exposure to quality large caps with growth potential in a cautious market environment.
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Outlook and Investor Considerations
Given the current market positioning, investors should closely monitor the evolving open interest and volume trends in Sun Pharma’s derivatives. The sustained increase in OI alongside rising prices and delivery volumes suggests a bullish consensus, but caution is warranted as derivatives activity can also amplify short-term volatility.
Fundamental factors such as regulatory approvals, product launches, and sectoral developments in Pharmaceuticals & Biotechnology will continue to influence the stock’s trajectory. The upgraded Mojo Grade to Buy reflects a positive medium-term outlook, supported by strong technicals and improving investor sentiment.
For traders, the liquidity profile and active derivatives market provide ample opportunities to implement strategies ranging from directional bets to hedging. Long-term investors may view the current momentum as a favourable entry point, especially given the stock’s large-cap stability and sector leadership.
Summary
Sun Pharmaceutical Industries Ltd’s recent surge in open interest and volume in the derivatives market, combined with its outperformance relative to sector and benchmark indices, signals a strengthening bullish stance among investors. The upgrade in Mojo Grade to Buy and robust technical indicators further reinforce the positive outlook. While the derivatives activity suggests potential for continued upward momentum, investors should remain vigilant to market dynamics and sector-specific catalysts.
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