Open Interest and Volume Dynamics
On 16 Feb 2026, Torrent Pharmaceuticals (symbol: TORNTPHARM) recorded an open interest (OI) of 26,077 contracts in its derivatives, marking a substantial increase of 5,640 contracts or 27.6% from the previous OI of 20,437. This sharp rise in OI is accompanied by a daily volume of 63,299 contracts, indicating active participation from traders and investors in both futures and options segments.
The futures segment alone accounted for a value of approximately ₹39,805 lakhs, while the options segment’s notional value was significantly higher at ₹64,458 crores. The combined derivatives turnover stood at ₹50,778 lakhs, underscoring the stock’s liquidity and attractiveness for large trade sizes, with the underlying spot price at ₹4,303.
Price Performance and Technical Strength
Torrent Pharmaceuticals hit a new 52-week and all-time high of ₹4,304.9 during intraday trading, outperforming its sector by 4.32% and delivering a 5.44% return on the day. The stock has gained consistently over the past three sessions, accumulating a 5.8% return in this period. It is trading comfortably above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong uptrend and positive momentum.
Investor participation has also risen, with delivery volumes on 13 Feb reaching 2.21 lakh shares, a 27.9% increase over the five-day average delivery volume. This uptick in delivery volume suggests genuine accumulation rather than speculative trading, reinforcing the bullish narrative.
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Market Positioning and Directional Bets
The surge in open interest alongside rising prices and volumes typically indicates fresh long positions being established, reflecting bullish market sentiment. The 27.6% increase in OI suggests that traders are positioning for further upside in Torrent Pharmaceuticals, possibly anticipating continued strong earnings growth or positive sector developments.
Given the stock’s large-cap status with a market capitalisation of ₹1,45,531.54 crores and a Mojo Score of 77.0, upgraded from a previous Hold to a Buy rating on 23 Dec 2025, institutional investors appear to be increasing their exposure. The Market Cap Grade of 1 further confirms the stock’s liquidity and suitability for sizeable trades.
Options market activity also supports this view. The substantial notional value in options contracts points to active hedging and speculative strategies, with traders likely favouring call options to capitalise on anticipated price appreciation. This is consistent with the stock’s recent outperformance relative to the Pharmaceuticals & Biotechnology sector, which returned 0.73% on the same day, compared to Torrent’s 5.44% gain.
Sectoral and Broader Market Context
Within the Pharmaceuticals & Biotechnology sector, Torrent Pharmaceuticals stands out as a leader, benefiting from robust fundamentals and favourable industry trends. The sector’s moderate gains on the day contrast with Torrent’s strong rally, highlighting the stock’s relative strength. The Sensex’s marginal 0.06% increase further emphasises Torrent’s outperformance and the focused interest it is attracting from market participants.
Technical indicators reinforce this positive outlook. The stock’s consistent gains over three consecutive sessions and its position above all major moving averages indicate sustained buying pressure. Rising delivery volumes confirm that investors are not merely trading intraday but are accumulating shares for the medium to long term.
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Implications for Investors
For investors, the combination of rising open interest, strong volume, and price momentum in Torrent Pharmaceuticals signals an opportune moment to consider increasing exposure. The stock’s upgrade to a Buy rating by MarketsMOJO, supported by a robust Mojo Score of 77.0, reflects improved fundamentals and positive market sentiment.
However, investors should remain mindful of broader market volatility and sector-specific risks, including regulatory changes and competitive pressures. The stock’s liquidity, with the ability to handle trade sizes of approximately ₹2.63 crores based on 2% of the five-day average traded value, ensures that institutional and retail investors can transact efficiently without significant price impact.
Overall, the data points to a strong bullish bias, with market participants positioning for further gains in Torrent Pharmaceuticals. The stock’s leadership within its sector and its technical strength make it a compelling candidate for portfolios seeking exposure to the Pharmaceuticals & Biotechnology space.
Conclusion
The recent surge in open interest in Torrent Pharmaceuticals’ derivatives, coupled with rising volumes and a new 52-week high, underscores a decisive shift in market positioning towards bullishness. Supported by an upgrade in rating and strong fundamentals, the stock is poised for continued outperformance relative to its sector and the broader market. Investors should monitor ongoing volume and open interest trends as confirmation of sustained momentum and consider the stock’s liquidity and valuation metrics when making investment decisions.
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