Open Interest and Volume Dynamics
The latest data reveals that Supreme Industries Ltd’s open interest (OI) in derivatives climbed from 15,365 contracts to 17,883, an increase of 2,518 contracts or 16.39% on 10 Feb 2026. This rise in OI was accompanied by a robust volume of 23,410 contracts, indicating active participation from traders and investors. The futures segment alone accounted for a value of approximately ₹14,213.67 lakhs, while the options segment’s notional value was substantially higher at ₹14,476.92 crores, culminating in a total derivatives value of ₹16,137.64 lakhs.
The underlying stock price closed at ₹3,731, having touched an intraday high of ₹3,823.20, marking a 3.19% peak during the session. Notably, the stock has been on a two-day winning streak, delivering a cumulative return of 1.53%, although it underperformed its sector by 0.35% on the day. The stock’s price remains above its 5-day, 20-day, 50-day, and 100-day moving averages but continues to trade below the 200-day moving average, suggesting a mixed technical outlook.
Market Positioning and Directional Bets
The surge in open interest alongside rising volume typically indicates fresh capital entering the market, either through new long positions or short covering. Given the stock’s recent gains and the elevated delivery volume of 1.58 lakh shares on 9 Feb 2026—up 6.26% from the five-day average—there is evidence of increased investor conviction. However, the stock’s underperformance relative to the sector and its position below the 200-day moving average temper bullish enthusiasm.
Investors appear to be positioning for potential volatility, as reflected in the sizeable options market activity. The large notional value in options suggests that traders are hedging or speculating on directional moves, possibly anticipating a breakout or correction in the near term. The mixed signals from price action and technical indicators imply that market participants are divided, with some betting on continued upside momentum while others may be preparing for a pullback.
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Technical and Fundamental Assessment
Supreme Industries Ltd operates in the Plastic Products - Industrial sector and is classified as a mid-cap company with a market capitalisation of ₹48,147 crores. The company’s Mojo Score currently stands at 34.0, reflecting a Sell rating, which was downgraded from Hold on 23 Oct 2025. This downgrade signals a deterioration in the company’s fundamental or technical outlook as assessed by MarketsMOJO’s proprietary grading system.
Despite the recent price gains, the stock’s relative underperformance against its sector (which gained 1.27% on the day) and the broader Sensex (up 0.37%) suggests that investors remain cautious. The stock’s liquidity profile supports sizeable trades, with a 2% threshold of the five-day average traded value equating to approximately ₹2.19 crores, making it accessible for institutional and retail investors alike.
Implications for Investors
The sharp increase in open interest combined with rising volume and delivery participation indicates that market participants are actively repositioning in Supreme Industries Ltd. This could be driven by expectations of upcoming corporate developments, sectoral shifts, or broader market trends impacting the plastic products industry.
However, the mixed technical signals and the company’s current Sell Mojo Grade advise caution. Investors should closely monitor price action around key moving averages, particularly the 200-day average, which remains a critical resistance level. Additionally, the elevated options activity suggests that volatility may increase, offering both opportunities and risks for traders employing derivatives strategies.
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Sectoral Context and Outlook
The Plastic Products - Industrial sector has experienced moderate gains recently, with the sector index rising 1.27% on the day. Supreme Industries Ltd’s slight underperformance relative to this benchmark highlights the competitive pressures and evolving market dynamics within the industry. Factors such as raw material cost fluctuations, regulatory changes, and demand variability from end-user industries continue to influence investor sentiment.
Given the company’s mid-cap status and current market positioning, it remains a stock to watch for traders seeking exposure to the plastics sector. The recent open interest surge may presage a significant directional move, but investors should weigh this against the company’s fundamental challenges and technical resistance levels.
Conclusion
Supreme Industries Ltd’s derivatives market activity on 10 Feb 2026 reveals a notable increase in open interest and volume, signalling heightened investor engagement and potential directional bets. While the stock has shown resilience with a two-day gain and strong intraday highs, its downgrade to a Sell rating and underperformance relative to the sector counsel prudence.
Market participants should monitor the evolving open interest trends, price action around key moving averages, and options market signals to gauge the stock’s next directional move. The mixed technical and fundamental indicators suggest that while opportunities exist, risks remain elevated in the near term.
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