TVS Motor Company Ltd Gains 7.28%: 5 Key Factors Driving the Week’s Rally

29 December 2025: Open Interest Surge Amid Price Pullback

TVS Motor Company Ltd began the week with a mixed session, closing at Rs.3,572.80, down 1.64% on the day, while the Sensex declined 0.41%. Despite the price dip, the stock saw a significant 13.42% increase in open interest in its derivatives segment, rising from 66,702 to 75,654 contracts. Futures volume was robust at 44,871 contracts, and the combined derivatives value exceeded ₹1,04,739.37 lakhs, signalling heightened market activity.

This divergence between price weakness and rising open interest suggested active repositioning by traders, possibly establishing fresh short positions or protective hedges. The stock traded below its short-term moving averages but remained above longer-term averages, indicating that the broader uptrend was intact despite short-term selling pressure. Delivery volumes declined sharply by 64.04%, reflecting reduced long-term investor participation.

30 December 2025: Technical Momentum Shift with Strong Long-Term Returns

On 30 Dec, TVS Motor rebounded to Rs.3,637.80, gaining 1.82%, though the Sensex marginally declined by 0.01%. Technical indicators showed a nuanced momentum shift from bullish to mildly bullish. The weekly MACD was mildly bearish, while the monthly MACD remained bullish, signalling consolidation rather than reversal. The RSI was neutral, and Bollinger Bands indicated sideways movement on a weekly basis but bullish on monthly charts.

Despite short-term caution, the stock’s long-term performance remained exceptional, with a one-year return of 51.24% compared to the Sensex’s 8.39%, and a remarkable ten-year return exceeding 1,100%. The Mojo Score was upgraded to 71.0 with a Buy grade, reflecting confidence in the stock’s medium-term prospects. The daily moving averages supported a bullish stance, and the stock traded comfortably above its 52-week low of Rs.2,170.05.

1 January 2026: New 52-Week and All-Time Highs

TVS Motor Company Ltd surged to a new 52-week high of Rs.3,752 and an all-time high of Rs.3,753.8 on 1 Jan 2026, closing at Rs.3,792.00, up 1.95%. This marked the third consecutive day of gains, with a cumulative return of 5.02% over three sessions. The stock outperformed the automobile sector by 0.49% and the Sensex by 1.77% on the day.

Technical strength was evident as the stock traded above all key moving averages, signalling a strong bullish trend. Financial metrics supported this momentum, with a Return on Capital Employed (ROCE) of 22.47%, net sales growth of 24.90%, and operating profit growth of 37.28%. The company reported eight consecutive quarters of positive results, with operating cash flow peaking at Rs.3,502.92 crores. Institutional investors held a significant 41.24% stake, underscoring confidence in the company’s fundamentals.

2 January 2026: Record Highs and Surge in Derivatives Activity

The stock continued its rally on 2 Jan 2026, hitting a new 52-week and all-time high of Rs.3,898.95, closing at Rs.3,897.00, a 2.77% gain on the day. This extended the four-day winning streak to a cumulative 7.91%. The Sensex rose 0.81%, highlighting TVS Motor’s strong relative performance.

Derivatives market activity intensified with open interest rising 10.84% to 64,360 contracts and futures and options volume reaching 74,755 contracts. The combined futures and options value was approximately ₹56,616.32 lakhs. The surge in open interest alongside rising prices suggested fresh long positions and growing bullish sentiment among traders.

Despite the strong price action, delivery volumes declined by 54.51%, indicating a possible increase in speculative trading rather than long-term accumulation. The stock maintained its position above all key moving averages, and the Mojo Score improved to 78.0 with a Buy grade, reflecting enhanced market confidence.

Daily Price Comparison: TVS Motor Company Ltd vs Sensex

Key Takeaways

Positive Signals: TVS Motor’s 7.28% weekly gain significantly outpaced the Sensex’s 1.35%, driven by strong derivatives market activity, multiple new highs, and robust financial metrics including a high ROCE of 22.47% and consistent profit growth. The stock’s Mojo Score upgrade to 78.0 and Buy rating reflect growing market confidence. Institutional ownership remains strong at 41.24%, supporting liquidity and stability.

Cautionary Notes: Despite price gains, delivery volumes declined sharply, suggesting that recent rallies may be partly driven by speculative trading rather than long-term accumulation. Short-term technical indicators showed mixed signals, with some oscillators mildly bearish, indicating potential for near-term volatility. The company’s relatively high debt-to-equity ratio of 1.92 times warrants monitoring for financial leverage risks.

Conclusion

TVS Motor Company Ltd’s week was characterised by a robust rally, marked by new 52-week and all-time highs, strong derivatives market participation, and sustained institutional interest. The stock’s outperformance relative to the Sensex and sector peers, combined with solid financial fundamentals and an upgraded Mojo Score, underscores its strong market positioning within the automobile sector. While short-term technical caution and declining delivery volumes suggest some volatility risk, the overall momentum and long-term growth trajectory remain positive. Investors should continue to monitor volume trends and sector developments to assess the sustainability of this rally.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →