Open Interest and Volume Dynamics
On 10 Feb 2026, Torrent Power’s open interest (OI) in derivatives rose sharply to 18,350 contracts, up 24.43% from the previous day’s 14,747. This increase of 3,603 contracts is notable in the context of the stock’s underlying price movement and volume patterns. The total traded volume in derivatives stood at 37,164 contracts, indicating active participation from traders and investors alike.
The futures segment alone accounted for a value of approximately ₹24,202 lakhs, while options contributed a staggering ₹21,323 crores in notional value, culminating in a combined derivatives turnover of ₹28,811 lakhs. Such elevated activity underscores the growing interest in Torrent Power’s price trajectory and the strategic positioning of market participants.
Price Performance and Technical Indicators
Torrent Power’s underlying stock price closed at ₹1,484, having touched an intraday high of ₹1,506, marking a 5.52% rally on the day. This performance outpaced the Power sector’s modest 0.19% gain and the Sensex’s 0.37% rise, highlighting the stock’s relative strength. The weighted average price suggests that a significant portion of volume traded closer to the day’s low, indicating some profit booking or cautious accumulation.
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. This technical backdrop, combined with rising open interest, suggests that investors are positioning for further upside, albeit with measured caution.
Investor Participation and Liquidity
Delivery volumes on 9 Feb surged to 6.9 lakh shares, a remarkable 121.84% increase over the five-day average delivery volume. This spike in actual shareholding transfer indicates genuine investor interest beyond speculative trading. The stock’s liquidity remains robust, with the capacity to handle trade sizes up to ₹1.9 crore based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.
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Market Positioning and Directional Bets
The sharp rise in open interest alongside strong volume suggests that traders are actively building positions in Torrent Power’s derivatives. The 24.43% increase in OI, coupled with the stock’s outperformance, points to a bullish bias among market participants. However, the weighted average price leaning towards the lower end of the day’s range hints at some profit-taking or hedging activity.
Given the stock’s current Mojo Score of 55.0 and a Mojo Grade upgrade from Sell to Hold as of 8 July 2025, the market appears to be cautiously optimistic. The mid-cap company, with a market capitalisation of ₹73,260 crore, is attracting renewed interest, but the Hold rating suggests investors should monitor developments closely before committing fully.
Comparative Sector and Market Context
Within the Power sector, Torrent Power’s 3.78% one-day return significantly outpaced the sector’s 0.19% gain and the Sensex’s 0.37% rise. This relative strength is a positive signal, especially as the sector grapples with regulatory and demand-side challenges. Torrent Power’s ability to outperform peers may be attributed to its operational efficiencies, stable cash flows, and strategic initiatives.
Investors should note that the company’s Market Cap Grade stands at 2, indicating moderate size and liquidity relative to the broader market. This positioning makes it an attractive candidate for both growth and value-oriented portfolios, provided the broader market conditions remain favourable.
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Implications for Investors
The surge in open interest and volume in Torrent Power’s derivatives signals a renewed focus on the stock’s near-term prospects. Investors should interpret this as a sign of increased conviction among traders, potentially foreshadowing further price appreciation. However, the Hold rating and moderate Mojo Score counsel prudence, suggesting that while the stock is on an upward trajectory, risks remain.
Market participants should watch for sustained increases in delivery volumes and further technical confirmation before increasing exposure. Additionally, monitoring sectoral developments and regulatory announcements will be crucial, given the power industry’s sensitivity to policy changes.
Conclusion
Torrent Power Ltd. is currently experiencing a notable uptick in derivatives open interest and trading volumes, reflecting a shift in market sentiment towards a more bullish stance. The stock’s strong price performance relative to its sector and the broader market, combined with rising investor participation, underscores its emerging appeal. While the Mojo Grade upgrade to Hold signals improving fundamentals, investors are advised to maintain a balanced approach, considering both the opportunities and inherent risks in the power sector.
Overall, the data suggests that Torrent Power is attracting renewed attention from both retail and institutional investors, positioning it as a stock to watch closely in the coming weeks.
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