Open Interest and Volume Dynamics
On 19 Jan 2026, Tech Mahindra’s open interest (OI) in derivatives rose sharply to 58,310 contracts, up 7,081 contracts or 13.82% from the previous OI of 51,229. This substantial increase in OI, alongside a robust volume of 1,44,484 contracts, indicates heightened activity and fresh positions being established rather than mere unwinding of existing trades.
The futures value stood at ₹1,33,359.80 lakhs, while the options segment exhibited an enormous notional value of approximately ₹1,37,468 crores, culminating in a total derivatives value of ₹1,50,661.95 lakhs. Such elevated figures underscore the stock’s prominence in the derivatives market and the strong interest from institutional and retail traders alike.
Price Action and Technical Strength
Tech Mahindra’s underlying price closed at ₹1,732, just 0.31% shy of its 52-week high of ₹1,736.40, reflecting sustained buying interest. The stock outperformed its sector by 4.65% and the broader Sensex by over 4%, registering a 3.78% gain on the day. Notably, the stock has gained for two consecutive sessions, delivering an impressive 8.98% return over this period.
Technical indicators reinforce this bullish momentum, with the share price trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day. This alignment signals a strong uptrend and healthy investor confidence in the stock’s near-term prospects.
Investor Participation and Liquidity
Investor engagement has surged, as evidenced by the delivery volume of 18.08 lakh shares on 16 Jan, which represents a 67.91% increase compared to the five-day average delivery volume. This rise in delivery volumes suggests genuine accumulation rather than speculative trading.
Liquidity remains ample, with the stock’s average traded value supporting trade sizes up to ₹7.13 crore based on 2% of the five-day average traded value. This ensures that both institutional and retail investors can transact sizeable volumes without significant market impact.
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Market Positioning and Directional Bets
The surge in open interest combined with rising volumes and price appreciation suggests that market participants are increasingly positioning for an upward move in Tech Mahindra’s shares. The 13.82% increase in OI is significant in the context of the stock’s recent rally, implying fresh long positions rather than short covering.
Options market data, with an exceptionally high notional value, points to active call option buying, which typically reflects bullish sentiment. The proximity to the 52-week high and the stock’s outperformance relative to the sector and benchmark indices further support the view that investors are betting on continued strength.
Moreover, the upgrade in the Mojo Grade from Hold to Buy on 14 Jan 2026, with a Mojo Score of 72.0, reinforces the positive outlook. The stock’s large market capitalisation of ₹1,68,453 crore and its leadership position in the Computers - Software & Consulting sector add to its appeal as a core portfolio holding.
Valuation and Fundamental Context
While the derivatives activity highlights short-term bullishness, it is important to consider the stock’s fundamentals. Tech Mahindra’s strong market cap grade of 1 indicates robust financial health and market standing. The company’s consistent earnings growth, coupled with favourable sector dynamics, underpin the positive sentiment reflected in the derivatives market.
Investors should also note the stock’s liquidity and delivery volume trends, which suggest genuine accumulation rather than speculative froth. This bodes well for sustainable price appreciation in the medium term.
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Outlook and Investor Takeaways
Given the strong open interest growth, rising volumes, and positive price action, Tech Mahindra appears poised for further gains in the near term. The stock’s technical strength, combined with improving investor participation and favourable fundamental ratings, supports a bullish stance.
However, investors should remain vigilant for any sudden shifts in market sentiment or sector headwinds that could temper the rally. Monitoring open interest trends and volume patterns in the coming sessions will be crucial to gauge the sustainability of the current momentum.
Overall, the evidence points to increased confidence among market participants, with directional bets favouring an upside continuation. The upgrade to a Buy rating by MarketsMOJO and the stock’s leadership in the Computers - Software & Consulting sector further enhance its attractiveness for medium to long-term investors.
Summary
Tech Mahindra’s derivatives market activity reveals a clear surge in open interest and volumes, signalling fresh bullish positioning. The stock’s proximity to its 52-week high, outperformance against sector and benchmark indices, and strong technical indicators all point to sustained investor optimism. Supported by solid fundamentals and a recent upgrade in rating, Tech Mahindra remains a compelling large-cap stock for investors seeking exposure to the software and consulting sector.
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