Open Interest and Volume Dynamics
On 23 Feb 2026, TVS Motor’s open interest in futures and options contracts rose sharply to 88,450 from the previous 80,038, marking an increase of 8,412 contracts or 10.51%. This expansion in OI was accompanied by a futures volume of 26,541 contracts, indicating heightened trading activity and fresh capital inflows into the derivatives market. The combined futures and options value stood at approximately ₹8,83,28.5 lakhs, underscoring the substantial monetary commitment by market participants.
The underlying stock price closed at ₹3,858, just 1.09% shy of its 52-week high of ₹3,909, signalling strong price momentum. Intraday, the stock touched a high of ₹3,894.8, gaining 2.06% on the day and outperforming the broader automobile sector by 0.37%. This price action, alongside the OI surge, suggests that traders are positioning for a potential upside continuation.
Market Positioning and Directional Bets
The increase in open interest, particularly when paired with rising prices and volumes, typically indicates fresh long positions being established rather than short covering. This is further supported by TVS Motor trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which reflects a sustained bullish trend across multiple timeframes.
Investor participation has also intensified, with delivery volumes on 20 Feb reaching 2.35 lakh shares, a 39.6% rise over the five-day average. This suggests that not only are traders active in the derivatives market, but long-term investors are also accumulating shares, reinforcing the positive sentiment.
Given the stock’s large-cap status with a market capitalisation of ₹1,84,381 crores and a strong mojo score of 78.0, upgraded from a previous Hold to a Buy rating on 6 Nov 2025, the fundamentals appear to be aligning with technical optimism. The mojo grade upgrade reflects improved financial health, operational performance, and market positioning, which likely underpins the recent surge in derivatives interest.
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Technical and Fundamental Context
TVS Motor’s current trading levels near its 52-week high, combined with the positive momentum in derivatives, suggest a strong bullish bias. The stock’s 1-day return of 0.96% matches the sector’s gain and outpaces the Sensex’s 0.43% rise, highlighting relative strength within the automobile space.
Liquidity remains robust, with the stock’s traded value supporting trade sizes of up to ₹2.61 crores based on 2% of the five-day average traded value. This ensures that institutional investors can enter or exit positions without significant price impact, further encouraging participation.
From a fundamental perspective, the mojo score of 78.0 and the upgrade to a Buy grade reflect strong earnings growth prospects, improving margins, and favourable industry dynamics. The automobile sector is benefiting from rising consumer demand, new product launches, and favourable government policies supporting electric and fuel-efficient vehicles, all of which bode well for TVS Motor’s medium-term outlook.
Implications for Investors and Traders
The surge in open interest and volume in TVS Motor’s derivatives market signals that traders are increasingly confident in the stock’s upward trajectory. This is often a precursor to sustained price moves, as fresh long positions build and short sellers face pressure.
Investors should monitor the OI and volume trends closely, as any sudden unwinding or drop in OI could indicate profit booking or a shift in sentiment. However, the current alignment of technical indicators, rising delivery volumes, and fundamental upgrades suggest that the stock is well positioned for further gains.
Given the stock’s large-cap status and liquidity, it remains an attractive option for both institutional and retail investors seeking exposure to the automobile sector’s growth story. The recent mojo grade upgrade from Hold to Buy on 6 Nov 2025 further reinforces the positive outlook.
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Outlook and Conclusion
TVS Motor Company Ltd’s recent open interest surge in derivatives, combined with strong price action and fundamental upgrades, paints a bullish picture for the stock. The 10.5% rise in OI alongside increasing volumes and price gains near the 52-week high indicates that market participants are positioning for further upside.
With a mojo score of 78.0 and a Buy rating, the stock is well supported by both technical and fundamental factors. Rising investor participation and robust liquidity further enhance its appeal as a core holding in the automobile sector.
Investors should continue to track derivatives activity and delivery volumes as key indicators of market sentiment. While the current trend favours bulls, prudent risk management remains essential given the inherent volatility in the sector.
Overall, TVS Motor stands out as a compelling investment opportunity amid a favourable industry backdrop and improving company fundamentals.
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