Open Interest and Volume Dynamics
On 23 Feb 2026, UltraTech Cement’s open interest in futures contracts rose sharply by 8,715 contracts, a 13.11% increase from the previous day’s 66,494 to 75,209. This rise in OI was accompanied by a substantial volume of 40,602 contracts traded, indicating heightened activity and fresh positions being established rather than mere unwinding of existing ones.
The futures value stood at ₹1,26,330.50 lakhs, while the options segment exhibited an enormous notional value of approximately ₹13,612.94 crores, underscoring the stock’s significant derivatives market liquidity. The combined derivatives turnover was ₹1,26,938.83 lakhs, reflecting robust investor interest.
Such a surge in open interest, alongside strong volumes, typically points to increased conviction among traders. It suggests that participants are positioning for a directional move, with fresh capital flowing into the stock’s derivatives, potentially anticipating further price appreciation.
Price Performance and Technical Indicators
UltraTech Cement’s underlying price closed at ₹12,930, just 1.06% shy of its 52-week high of ₹13,110. The stock has outperformed its sector by 0.85% on the day and has delivered a 2.25% return over the past two consecutive trading sessions. This momentum is supported by the stock trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong uptrend.
However, investor participation on the delivery front has declined, with delivery volume on 20 Feb falling by 33.66% compared to the five-day average, indicating some caution among long-term holders. Despite this, the stock remains liquid enough to support sizeable trades, with a 2% threshold of the five-day average traded value allowing for trade sizes up to ₹3.67 crores without significant market impact.
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Market Positioning and Sentiment
The increase in open interest alongside rising prices suggests that market participants are predominantly taking bullish positions. The derivatives data imply that traders are betting on further upside, supported by the stock’s proximity to its 52-week high and positive momentum indicators.
Nevertheless, the recent downgrade in UltraTech Cement’s Mojo Grade from Buy to Hold on 16 Feb 2026, with a current Mojo Score of 64.0, reflects a tempered outlook from the MarketsMOJO analytics team. The downgrade was influenced by a reassessment of valuation metrics and sector headwinds, despite the company’s large market capitalisation of ₹3,81,874.74 crores and strong industry positioning.
Investors should note that the stock’s market cap grade remains at 1, indicating its status as a large-cap heavyweight within the Cement & Cement Products sector. This stature often attracts institutional interest, which can amplify price moves in both directions depending on broader market conditions.
Sector and Benchmark Comparison
UltraTech Cement’s one-day return of 1.51% outpaced the Cement sector’s 0.86% gain and the Sensex’s 0.44% rise, highlighting its relative strength. This outperformance is significant given the sector’s recent volatility amid fluctuating input costs and demand uncertainties.
The stock’s ability to maintain gains above all major moving averages further reinforces its technical resilience. However, the decline in delivery volumes suggests some investors may be booking profits or adopting a wait-and-watch stance, which could temper near-term upside.
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Implications for Investors
The surge in open interest and volume in UltraTech Cement’s derivatives market signals increased speculative interest and potential directional bets on the stock’s near-term trajectory. Traders appear to be positioning for further gains, supported by technical strength and relative outperformance.
However, the downgrade to a Hold rating and falling delivery volumes caution investors to monitor the stock closely for signs of profit-taking or sector-specific headwinds. The cement industry continues to face challenges such as fluctuating raw material costs and demand variability, which could impact earnings momentum.
For long-term investors, the stock’s large-cap status and strong market presence remain positives, but valuation discipline is advised given the recent re-rating. Short-term traders may find opportunities in the derivatives market’s heightened activity, but should be mindful of potential volatility.
Conclusion
UltraTech Cement Ltd’s recent open interest surge in derivatives, combined with strong volume and price action, reflects a market leaning towards bullishness. While technical indicators and relative strength support this view, the downgrade in Mojo Grade and reduced delivery participation suggest a balanced approach is prudent. Investors should weigh the stock’s fundamentals, sector outlook, and market positioning carefully before making fresh commitments.
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