Tube Investments of India Ltd’s Volatile Week: 8.12% Surge Followed by Sharp Declines

2 February 2026: Opening Weakness Amid Broader Market Decline

Tube Investments of India Ltd began the week on a subdued note, closing at Rs.2,316.45, down 0.74% from the previous Friday’s close of Rs.2,333.65. This decline was in line with the broader market, as the Sensex fell 1.03% to 35,814.09. The stock’s volume was relatively low at 3,469 shares, reflecting cautious investor sentiment amid a weak market environment.

3 February 2026: Strong Gap Up and Intraday Rally

The stock rebounded sharply on 3 February, opening with a significant gap up of 4.84% and reaching an intraday high of Rs.2,475, a 6.84% increase from the previous close. It closed the day at Rs.2,504.55, marking an impressive 8.12% gain. This surge outpaced the Auto Components & Equipments sector’s 3.25% gain and the Sensex’s 2.63% rise, highlighting strong buying interest and positive market sentiment.

Technical indicators showed the stock closing above its 5-day and 20-day moving averages, signalling short-term strength. However, it remained below longer-term averages, indicating resistance ahead. The stock’s adjusted beta of 1.10 suggested heightened volatility relative to the market.

This rally followed two days of prior declines, suggesting a short-term trend reversal. Despite this, the stock’s one-month performance remained negative at -4.66%, underperforming the Sensex’s -2.43% over the same period.

4 February 2026: Continued Momentum and Mixed Financial Results

On 4 February, Tube Investments maintained its upward momentum, surging 5.81% intraday to a high of Rs.2,625.7 and closing at Rs.2,637.20. This marked a two-day gain of over 13%, significantly outperforming the Sensex’s modest 0.37% increase. The stock traded above its 5-day, 20-day, and 50-day moving averages, signalling medium-term strength.

However, the company’s Q3 FY26 results released the same day revealed a revenue surge that masked a decline in profits and margin pressures. This mixed financial performance tempered enthusiasm despite the strong price action.

5 February 2026: Sharp Decline and Bearish Derivatives Activity

The stock reversed sharply on 5 February, hitting an intraday low of Rs.2,491.25 and closing at Rs.2,380.80, down 9.72%. This decline was more pronounced than the Sensex’s 0.53% fall and the sector’s 0.95% drop, indicating company-specific pressures. The stock underperformed its sector by nearly 5 percentage points.

Heavy put option activity was recorded, with 3,062 contracts traded at the Rs.2,500 strike price for the 24 February expiry, signalling bearish sentiment among traders. The put option turnover reached ₹430.21 lakhs, with open interest at 734 contracts, suggesting significant downside hedging or speculative bets.

Technical indicators remained mixed, with the stock above short-term moving averages but below longer-term ones. Delivery volumes declined by 38.38%, indicating reduced buyer conviction amid volatility.

MarketsMOJO upgraded the stock’s rating from Sell to Hold on 4 February, reflecting a cautious but stabilising outlook despite the price pressure.

6 February 2026: Rising Open Interest Amid Price Weakness

On the final trading day of the week, Tube Investments saw a 12.05% surge in open interest in its derivatives segment, rising to 34,182 contracts. This increase accompanied a 4.68% decline in the stock price, which closed at Rs.2,313.15 after touching an intraday low of Rs.2,270.10. The weighted average price of traded contracts skewed towards the day’s low, indicating fresh bearish positions rather than position unwinding.

Despite the price weakness, delivery volumes surged by 349.8%, suggesting some long-term investors may be accumulating at lower levels. The stock traded below all key moving averages, signalling a bearish technical trend.

The Sensex was essentially flat, up 0.01%, highlighting the stock’s relative underperformance. The Mojo Score remained at 50.0 with a Hold rating, reflecting a balanced view amid mixed signals.

Weekly Price Performance Comparison

Key Takeaways

Positive Signals: The stock demonstrated strong intraday rallies on 3 and 4 February, with gains of 8.12% and 5.30% respectively, outperforming the Sensex and sector during these sessions. The upgrade from Sell to Hold by MarketsMOJO reflects stabilising fundamentals and improved technical momentum. Elevated delivery volumes on 6 February suggest some long-term investor interest at lower price levels.

Cautionary Signals: Despite short-term rallies, the stock closed the week down 0.88%, underperforming the Sensex’s 1.51% gain. Heavy put option activity and a 12.05% surge in open interest indicate bearish sentiment and hedging pressure. The stock remains below key longer-term moving averages, with technical indicators signalling a bearish trend. Profit declines and margin pressures reported in Q3 FY26 results add to near-term concerns.

Conclusion

Tube Investments of India Ltd’s week was marked by pronounced volatility, with sharp gains early in the week followed by steep declines and bearish derivatives activity. While the stock showed resilience through strong intraday rallies and a technical upgrade to Hold, the prevailing bearish momentum and underperformance relative to the Sensex highlight ongoing challenges. Investors should remain cautious, monitoring technical levels and derivatives market activity closely as the stock navigates a complex environment shaped by mixed financial results and sector headwinds.

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