Open Interest and Volume Dynamics
On 10 Feb 2026, Torrent Power’s open interest in futures and options contracts rose sharply to 18,284 from the previous 14,747, marking a substantial increase of 23.98%. This surge in OI was accompanied by a volume of 38,911 contracts, indicating active trading and fresh capital inflows into the stock’s derivatives market. The combined futures and options value stood at approximately ₹29,849 lakhs, with futures alone accounting for ₹25,041 lakhs, underscoring the sizeable monetary commitment by market participants.
The underlying stock price closed at ₹1,478, having touched an intraday high of ₹1,506, a gain of 5.52% on the day. Notably, Torrent Power outperformed its sector by 3.69% and the broader Sensex by 3.59%, signalling strong relative strength. The weighted average price of traded contracts skewed closer to the day’s low, suggesting that while the stock rallied, a significant portion of volume was executed at more conservative price levels, possibly reflecting cautious optimism among traders.
Technical and Market Positioning Insights
Technically, Torrent Power is trading above its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating a sustained uptrend across multiple timeframes. The delivery volume on 9 Feb surged to 6.9 lakh shares, a remarkable 121.84% increase over the five-day average, highlighting rising investor participation and confidence in the stock’s prospects. Liquidity remains robust, with the stock capable of supporting trade sizes up to ₹1.9 crore based on 2% of the five-day average traded value, facilitating smooth execution for institutional and retail investors alike.
The MarketsMOJO Mojo Score for Torrent Power currently stands at 55.0, upgraded from a previous Sell rating to a Hold on 8 Jul 2025. This reflects an improvement in the company’s fundamentals and technical outlook, although the score suggests cautious optimism rather than a full bullish endorsement. The market capitalisation is ₹73,260 crore, categorising Torrent Power as a mid-cap stock within the power sector.
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Interpreting the Open Interest Surge
The near 24% increase in open interest suggests that new positions are being established rather than existing ones being squared off. This typically indicates fresh directional bets by traders and investors. Given the concurrent price appreciation and volume patterns, it is plausible that the majority of these new positions are bullish in nature, anticipating further upside in Torrent Power’s share price.
However, the weighted average price leaning towards the lower end of the day’s range hints at some profit-taking or hedging activity, which is common in volatile markets. The sizeable futures value relative to options also points to a preference for directional exposure rather than complex option strategies, reinforcing the view of a predominantly bullish stance.
Sectoral and Market Context
Within the power sector, Torrent Power’s outperformance is notable. The sector’s one-day return was a modest 0.09%, while Torrent Power surged 3.80%. This divergence highlights the company’s relative strength amid a broadly flat sectoral environment. The Sensex’s 0.21% gain further emphasises Torrent Power’s standout performance on the day.
Such sectoral outperformance combined with rising open interest often precedes sustained price moves, as market participants rotate capital towards fundamentally and technically stronger stocks. Torrent Power’s improved Mojo Grade from Sell to Hold corroborates this narrative, signalling a positive shift in the company’s investment appeal.
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Implications for Investors
For investors, the surge in open interest coupled with strong price action and rising delivery volumes suggests an opportune moment to reassess Torrent Power’s position within their portfolios. The stock’s liquidity and mid-cap status make it accessible for both retail and institutional investors seeking exposure to the power sector’s growth potential.
Nevertheless, the Hold rating and Mojo Score of 55.0 imply that while the outlook is improving, investors should remain vigilant to broader market conditions and sectoral developments. The power industry is subject to regulatory changes, fuel price fluctuations, and demand variability, all of which can impact earnings and valuations.
Monitoring open interest trends alongside price and volume will be crucial in gauging the sustainability of the current momentum. A continued rise in OI with price appreciation would reinforce bullish conviction, whereas a divergence could signal caution.
Conclusion
In summary, Torrent Power Ltd. is exhibiting clear signs of renewed market interest as evidenced by a near 24% jump in open interest and strong volume participation in its derivatives segment. The stock’s outperformance relative to its sector and the Sensex, combined with technical strength and improved Mojo ratings, point towards a cautiously optimistic outlook. Investors should consider these factors in conjunction with their risk appetite and investment horizon when evaluating Torrent Power as part of their portfolio strategy.
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