Open Interest and Volume Dynamics
The latest data reveals that Supreme Industries Ltd’s open interest surged from 15,365 contracts to 17,388, an increase of 2,023 contracts or 13.17%. This rise in OI, coupled with a daily volume of 18,237 contracts, indicates a robust participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹10,211.6 lakhs, while options contributed a staggering ₹11,419.45 crores, culminating in a total derivatives value of ₹11,830.19 lakhs. Such figures underscore the stock’s liquidity and the active interest of institutional and retail investors alike.
Price Performance and Moving Averages
On the price front, Supreme Industries Ltd outperformed its sector by 0.31% and the broader Sensex by 0.89% on the day, registering a 1.25% gain compared to the sector’s 0.74% and Sensex’s 0.36%. The stock has been on a two-day consecutive gain streak, delivering a 2% return over this period. Intraday, it touched a high of ₹3,823.20, marking a 3.19% rise from previous levels.
Technically, the stock is trading above its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short to medium-term strength. However, it remains below the 200-day moving average, indicating that the longer-term trend may still be under pressure. This mixed technical picture suggests that while momentum is building, investors remain cautious about the sustainability of the rally.
Investor Participation and Liquidity
Investor engagement has also increased, with delivery volumes rising to 1.58 lakh shares on 09 Feb 2026, a 6.26% increase over the five-day average delivery volume. This uptick in delivery volume points to genuine buying interest rather than speculative trading. The stock’s liquidity is adequate for sizeable trades, with a typical trade size of ₹2.19 crore based on 2% of the five-day average traded value, making it accessible for institutional investors.
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Market Positioning and Directional Bets
The surge in open interest alongside rising volumes often signals that new positions are being established rather than existing ones being squared off. In Supreme Industries Ltd’s case, the 13.17% increase in OI suggests fresh directional bets, with traders positioning for potential upside given the recent price momentum. However, the relatively modest day change of 0.21% and the stock’s position below the 200-day moving average imply that some market participants remain wary of a sustained breakout.
Options market data further supports this view. The substantial option value of over ₹11,419 crores indicates significant hedging and speculative activity. Traders may be employing strategies such as call buying or protective puts to capitalise on expected volatility or to guard against downside risks. This duality reflects a market that is cautiously optimistic but prepared for potential reversals.
Mojo Score and Analyst Ratings
Supreme Industries Ltd currently holds a Mojo Score of 34.0, categorised as a Sell, a downgrade from its previous Hold rating as of 23 Oct 2025. The Market Cap Grade stands at 2, reflecting its mid-cap status with moderate market capitalisation of ₹48,147 crore. This downgrade signals that despite recent positive price action and increased derivatives activity, fundamental or technical concerns persist among analysts, possibly related to valuation, sector outlook, or broader market conditions.
Sector and Broader Market Context
The Plastic Products - Industrial sector has shown steady but unspectacular performance, with Supreme Industries Ltd marginally outperforming its peers on the day. The sector’s cautious tone may be influenced by raw material cost pressures, regulatory changes, or demand fluctuations in end-user industries. Against this backdrop, the stock’s derivatives activity and price momentum stand out as noteworthy, suggesting that investors are selectively optimistic about its near-term prospects.
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Implications for Investors
The recent surge in open interest and volume in Supreme Industries Ltd’s derivatives market highlights increased investor focus and potential volatility ahead. While the stock’s short-term technical indicators are encouraging, the downgrade in Mojo Grade and its position below the 200-day moving average counsel prudence. Investors should closely monitor upcoming earnings, sector developments, and broader market trends before committing fresh capital.
For traders, the elevated option values and rising OI present opportunities to deploy strategic positions, including spreads and hedges, to capitalise on expected price movements while managing risk. Long-term investors may prefer to await confirmation of sustained upward momentum or fundamental improvements before increasing exposure.
Conclusion
Supreme Industries Ltd’s derivatives market activity signals a growing interest in the stock, driven by a combination of fresh directional bets and hedging strategies. The stock’s recent outperformance relative to its sector and the Sensex, coupled with rising delivery volumes, suggests a cautiously optimistic market stance. However, the downgrade in analyst ratings and mixed technical signals indicate that investors should remain vigilant and adopt a balanced approach in their investment decisions.
Overall, the stock’s evolving market positioning and open interest trends warrant close attention as they may presage significant price action in the near term.
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