Open Interest and Volume Dynamics
On 23 Feb 2026, TVS Motor Company’s open interest in derivatives rose sharply by 10,219 contracts, a 12.77% increase from the previous OI of 80,038 to 90,257. This substantial uptick in OI was accompanied by a futures volume of 32,372 contracts, reflecting heightened trading activity. The combined futures and options value stood at approximately ₹11,063 crores, underscoring the significant capital flow into the stock’s derivatives market.
The underlying stock price closed at ₹3,851, just 1.41% shy of its 52-week high of ₹3,909, indicating strong price momentum. Intraday, the stock touched a high of ₹3,894.8, gaining 2.06% before settling with a 1.13% gain on the day. This price action aligns with the increased open interest, suggesting that traders are positioning for further upside.
Market Positioning and Investor Sentiment
The rise in open interest alongside increasing volumes typically signals fresh money entering the market rather than mere position squaring. In TVS Motor’s case, the 12.77% OI increase coupled with a 39.6% rise in delivery volume to 2.35 lakh shares on 20 Feb 2026 indicates growing investor conviction. The stock is trading above all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—highlighting a robust uptrend and technical strength.
Compared to the broader sector’s 0.83% gain and the Sensex’s 0.38% rise on the same day, TVS Motor’s 1.12% return demonstrates relative outperformance. This suggests that market participants are favouring TVS Motor within the automobile sector, possibly anticipating strong earnings or positive industry developments.
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Directional Bets and Derivatives Market Insights
The surge in open interest is often interpreted as a sign of directional bets being placed by traders. In TVS Motor’s derivatives market, the increase in OI alongside rising futures volume suggests that participants are building fresh long positions, anticipating further price appreciation. The futures value of ₹1,09,514 lakhs and options value exceeding ₹11,115 crores reflect substantial liquidity and interest in hedging or speculative strategies.
Given the stock’s proximity to its 52-week high and its technical positioning above all major moving averages, the market appears to be pricing in a positive outlook. This could be driven by expectations of robust quarterly results, favourable industry trends such as increased demand for two-wheelers, or strategic initiatives by the company to enhance market share.
Mojo Score Upgrade and Market Capitalisation
MarketsMOJO has upgraded TVS Motor Company’s Mojo Grade from Hold to Buy as of 6 Nov 2025, reflecting improved fundamentals and positive momentum. The stock carries a Mojo Score of 78.0, indicating strong buy sentiment based on a comprehensive assessment of financial metrics, valuation, and technical indicators. The company’s market capitalisation stands at ₹1,84,381 crores, categorising it as a large-cap stock with significant institutional interest and liquidity.
This upgrade aligns with the recent surge in open interest and price gains, reinforcing the view that TVS Motor is well-positioned for sustained growth in the near term.
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Liquidity and Trading Considerations
TVS Motor’s liquidity profile supports active trading, with the stock’s average traded value over five days enabling trade sizes of up to ₹2.61 crores without significant market impact. This liquidity is crucial for institutional investors and large traders looking to build or unwind positions efficiently.
The rising delivery volumes and open interest also suggest that long-term investors are increasingly participating, which may reduce volatility and provide a firmer base for price appreciation.
Outlook and Investor Takeaways
In summary, the recent surge in open interest and volume in TVS Motor Company’s derivatives market, combined with positive price action and a Mojo Grade upgrade, points to a constructive near-term outlook. Investors should monitor upcoming quarterly results and sector developments closely, as these will likely influence the stock’s trajectory.
While the stock is trading near its 52-week high, the strong technical positioning and increased investor participation suggest that further gains are plausible. However, as with all equity investments, prudent risk management and attention to market conditions remain essential.
Overall, TVS Motor Company Ltd stands out as a compelling large-cap automobile stock with improving fundamentals, robust market interest, and favourable technical signals, making it a noteworthy candidate for investors seeking exposure to India’s growing automotive sector.
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