Open Interest and Volume Dynamics
On 19 Jan 2026, Tech Mahindra’s open interest (OI) in derivatives rose sharply by 5,546 contracts, a 10.83% increase from the previous day’s 51,229 to 56,775. This expansion in OI was accompanied by a robust volume of 76,302 contracts, underscoring heightened trading activity. The futures segment alone accounted for a value of approximately ₹85,548.56 lakhs, while options contributed a staggering ₹71,034.82 crores, culminating in a total derivatives value of ₹95,202.35 lakhs.
Such a pronounced increase in open interest alongside elevated volumes typically indicates fresh positions being established rather than existing ones being squared off. This suggests that market participants are actively positioning themselves for anticipated price movements in Tech Mahindra’s shares.
Price Performance and Technical Strength
Tech Mahindra’s underlying share price closed at ₹1,718, just 0.78% shy of its 52-week high of ₹1,736.40. The stock outperformed its sector by 4.31% on the day, registering a gain of 3.32%, and has delivered an impressive 8.46% return over the past two consecutive trading sessions. Intraday, the stock touched a high of ₹1,734.90, reflecting strong buying interest.
Technically, the stock is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained uptrend. The rising delivery volume of 18.08 lakh shares on 16 Jan, which surged 67.91% above the five-day average, further confirms growing investor conviction and participation in the stock.
Just made the cut! This Mid Cap from the Heavy Electrical Equipment sector entered our elite Top 1% list recently. Discover it before the crowd catches on!
- - Top-rated across platform
- - Strong price momentum
- - Near-term growth potential
Market Positioning and Directional Bets
The surge in open interest, combined with rising prices and volumes, points to a predominantly bullish sentiment among traders and investors. The increase in futures open interest by over 10% suggests that participants are taking fresh long positions, anticipating further upside in Tech Mahindra’s shares. This is corroborated by the stock’s outperformance relative to the sector and benchmark indices, with the Sensex declining 0.52% and the sector falling 1.25% on the same day.
Options market data, with an options value exceeding ₹71,000 crores, indicates significant hedging and speculative activity. The large notional value in options contracts may reflect a mix of directional bets and volatility plays, but the overall trend aligns with a positive outlook given the underlying price momentum.
Fundamental and Market Context
Tech Mahindra, a large-cap company with a market capitalisation of ₹1,63,667 crores, operates in the Computers - Software & Consulting sector, which has been witnessing steady growth driven by digital transformation trends globally. The company’s recent upgrade in mojo grade from Hold to Buy on 14 Jan 2026, with a mojo score of 72.0, reflects improved fundamentals and market positioning. This upgrade has likely contributed to increased investor confidence and the resultant surge in derivatives activity.
Liquidity metrics also support active trading, with the stock’s liquidity sufficient to accommodate trade sizes of up to ₹7.13 crores based on 2% of the five-day average traded value. This ensures that institutional and retail investors can enter or exit positions without significant price impact, further encouraging participation.
Curious about Tech Mahindra Ltd. from Computers - Software & Consulting? Get the complete picture with our detailed research report covering fundamentals, technicals, peer analysis, and everything you need to decide!
- - Detailed research coverage
- - Technical + fundamental view
- - Decision-ready insights
Implications for Investors
The current market signals suggest that Tech Mahindra is in a strong phase of accumulation, with both institutional and retail investors increasing their exposure through derivatives and cash segments. The stock’s proximity to its 52-week high and consistent gains over recent sessions indicate positive momentum that could extend further, provided sectoral and macroeconomic conditions remain favourable.
However, investors should remain vigilant to potential volatility, especially given the sizeable options activity which can sometimes precede sharp price swings. Monitoring open interest trends alongside price action will be crucial to gauge whether the bullish positioning sustains or if profit-taking emerges.
Overall, the upgrade to a Buy mojo grade and the robust derivatives market activity reinforce Tech Mahindra’s appeal as a compelling investment opportunity within the software and consulting space.
Conclusion
Tech Mahindra Ltd.’s recent surge in open interest and trading volumes in the derivatives market, combined with strong price performance and technical indicators, highlight a growing bullish consensus. The company’s upgraded mojo rating and large-cap status further underpin its attractiveness to investors seeking exposure to the technology sector’s growth trajectory. While the market positioning suggests optimism, prudent monitoring of market dynamics remains essential to capitalise on emerging opportunities effectively.
Unlock special upgrade rates for a limited period. Start Saving Now →
