Open Interest and Volume Dynamics
The open interest (OI) in Supreme Industries Ltd’s derivatives rose sharply by 1,788 contracts, a 14.18% increase from the previous figure of 12,613 to 14,401. This surge in OI was accompanied by a substantial volume of 13,467 contracts traded, indicating strong participation from traders and investors. The futures segment alone accounted for a value of approximately ₹11,226 lakhs, while options contributed a staggering ₹7,052 crores in notional value, culminating in a total derivatives value of ₹12,753 lakhs.
This spike in open interest, coupled with elevated volumes, suggests that market participants are actively building or adjusting positions, potentially anticipating significant price movements in the near term. The underlying stock price closed at ₹3,337, having touched an intraday high of ₹3,379.8, marking a 3.22% rise on the day and outperforming its sector by 0.5% and the Sensex by 1.32 percentage points.
Price and Moving Average Analysis
Supreme Industries Ltd’s price action reveals a mixed technical picture. The stock is trading above its 5-day and 20-day moving averages, signalling short-term bullish momentum. However, it remains below its 50-day, 100-day, and 200-day moving averages, indicating that medium to long-term trends have yet to confirm a sustained uptrend. This divergence often attracts speculative interest, as traders seek to capitalise on short-term momentum while cautious investors await confirmation of trend reversals.
Delivery volumes have also surged, with 1.01 lakh shares delivered on 30 Dec, a 57.85% increase over the five-day average delivery volume. This rise in delivery volume underscores genuine investor interest rather than purely speculative trading, adding weight to the recent price gains.
Rising fast and still accelerating! This Small Cap from FMCG sector is riding pure momentum right now. Jump in before the rally reaches its peak!
- - Accelerating price action
- - Pure momentum play
- - Pre-peak entry opportunity
Market Positioning and Directional Bets
The increase in open interest alongside rising volumes and price gains suggests that traders are positioning for a potential upward move in Supreme Industries Ltd. The futures value of ₹11,226 lakhs indicates significant capital deployment in directional bets, while the large options notional value points to active hedging and speculative strategies.
Given the stock’s current Mojo Score of 37.0 and a Mojo Grade downgraded to Sell from Hold on 23 Oct 2025, the market appears divided. The downgrade reflects concerns over valuation or near-term fundamentals, yet the recent surge in derivatives activity and price outperformance hints at renewed optimism or short-covering. Investors should weigh these conflicting signals carefully.
Liquidity remains adequate, with the stock’s traded value supporting a trade size of approximately ₹0.85 crore based on 2% of the five-day average traded value. This liquidity facilitates smoother execution of large trades, which is crucial for institutional investors and active traders alike.
Sector and Benchmark Comparison
Supreme Industries Ltd’s 1-day return of 2.01% outpaced the Plastic Products - Industrial sector’s 1.44% gain and the broader Sensex’s 0.69% rise. This relative strength is noteworthy given the sector’s typically steady but unspectacular performance. The stock’s mid-cap market capitalisation of ₹42,257 crore places it in a competitive bracket where growth prospects and volatility often attract active trading interest.
However, the stock’s position below key longer-term moving averages suggests that while short-term momentum is positive, investors should remain cautious until a sustained breakout is confirmed.
Holding Supreme Industries Ltd from Plastic Products - Industrial? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Implications for Investors and Traders
The recent surge in open interest and volume in Supreme Industries Ltd’s derivatives market signals a shift in market sentiment and positioning. Traders appear to be taking more directional exposure, possibly anticipating further price appreciation in the short term. However, the stock’s downgrade to a Sell grade by MarketsMOJO and its position below key moving averages counsel prudence.
Investors should monitor whether the stock can sustain its momentum and break above longer-term moving averages, which would confirm a more durable uptrend. Additionally, the rising delivery volumes indicate genuine investor interest, which could support price stability.
Given the mixed signals, a balanced approach combining technical analysis with fundamental assessment is advisable. Those with a higher risk appetite may consider tactical long positions, while conservative investors might await clearer trend confirmation or explore alternative stocks within the sector.
Summary
Supreme Industries Ltd’s derivatives market activity on 31 Dec 2025 highlights a significant increase in open interest and volume, reflecting heightened investor engagement and potential directional bets. The stock’s price outperformance relative to its sector and benchmark indices, combined with rising delivery volumes, suggests growing optimism. Yet, the downgrade to a Sell grade and technical resistance at longer-term moving averages warrant caution. Investors should closely monitor evolving market dynamics and consider peer comparisons to optimise portfolio decisions.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
