Torrent Power Ltd Sees Sharp Surge in Derivatives Open Interest Amid Bullish Momentum

Open Interest and Volume Dynamics

On 10 Feb 2026, Torrent Power’s open interest in derivatives rose sharply to 18,355 contracts, up 24.47% from the previous day’s 14,747. This increase of 3,608 contracts is notable given the stock’s underlying value of ₹1,482 and the corresponding futures value of approximately ₹22,302 lakhs. The options segment also displayed substantial activity, with an option value tallying nearly ₹19,409 crores, contributing to a total derivatives value of ₹26,526 lakhs.

Volume traded on the day stood at 33,854 contracts, indicating strong liquidity and active participation. The weighted average price data reveals that a larger volume was transacted closer to the day’s low, suggesting that buyers were accumulating positions at relatively lower price points during the session.

Price Performance and Moving Averages

Torrent Power outperformed its sector by 3.82% on the day, registering a 3.83% gain compared to the sector’s modest 0.08% rise and the Sensex’s 0.33% advance. The stock touched an intraday high of ₹1,506, marking a 5.52% increase from its previous close. Importantly, Torrent Power is trading above its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained bullish trend and positive investor sentiment.

Investor participation has also intensified, with delivery volumes on 9 Feb reaching 6.9 lakh shares, a 121.84% increase over the five-day average. This surge in delivery volume underscores genuine buying interest rather than speculative intraday trading.

Market Positioning and Directional Bets

The sharp rise in open interest alongside elevated volumes suggests that market participants are taking fresh positions, possibly anticipating further upside. The increase in futures open interest by over 3,600 contracts indicates that traders are committing capital to directional bets, likely bullish given the price action and moving average trends.

Options data, with a substantial notional value, points to active hedging and speculative strategies. The combination of rising OI and volume often precedes significant price moves, as it reflects both new money entering the market and existing participants adjusting their exposures.

Given Torrent Power’s current Mojo Score of 55.0 and a Mojo Grade upgrade from Sell to Hold on 8 Jul 2025, the stock is positioned in a cautious yet improving stance. The market cap grade of 2 and mid-cap status (₹73,260 crores) further highlight its growing appeal among institutional and retail investors alike.

Sector Context and Comparative Performance

The power sector has been relatively subdued, with many stocks consolidating amid regulatory and demand uncertainties. Torrent Power’s outperformance by nearly 4% on the day is therefore significant, signalling renewed investor confidence. Its ability to trade above all major moving averages contrasts with some peers still struggling to regain momentum.

Liquidity metrics also support active trading, with the stock’s average traded value allowing for sizeable trades up to ₹1.9 crores without impacting price significantly. This liquidity is crucial for institutional investors looking to build or unwind positions efficiently.

Implications for Investors

For investors, the surge in open interest combined with strong volume and price action suggests a potential directional move in Torrent Power’s shares. The stock’s upgrade to a Hold rating from Sell by MarketsMOJO on 8 Jul 2025 reflects an improving fundamental and technical outlook, though caution remains warranted given the mid-cap volatility and sector headwinds.

Investors should monitor whether the rising open interest sustains and if delivery volumes continue to climb, as these factors would confirm genuine accumulation. Conversely, any sharp drop in OI or volume could indicate profit-taking or position unwinding.

Overall, Torrent Power’s current market positioning and derivatives activity point to a cautiously optimistic outlook, with the potential for further gains if sector conditions improve and broader market sentiment remains supportive.

Conclusion: A Watchful Eye on Torrent Power’s Momentum

The recent spike in open interest and volume in Torrent Power’s derivatives market is a clear indicator of growing investor interest and evolving market positioning. The stock’s strong price performance relative to its sector and the Sensex, combined with its trading above all key moving averages, suggests a positive technical backdrop.

However, the Hold rating and moderate Mojo Score of 55.0 imply that while the stock is improving, it is not yet a definitive buy. Investors should remain vigilant, tracking open interest trends, delivery volumes, and sector developments to gauge the sustainability of this momentum.

In a market environment where liquidity and directional conviction are paramount, Torrent Power’s derivatives activity offers valuable insights into underlying sentiment and potential price trajectories. For those with exposure or interest in the power sector, this stock merits close attention as it navigates its current phase of renewed investor engagement.

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