United Spirits Ltd Sees Sharp Open Interest Surge Amid Bullish Momentum

Open Interest and Volume Dynamics

On 23 Feb 2026, United Spirits recorded an open interest (OI) of 42,449 contracts, up from 38,575 the previous session, marking a substantial increase of 3,874 contracts or 10.04%. This rise in OI is accompanied by a volume of 24,203 contracts, indicating robust trading activity in the futures and options market. The futures segment alone accounted for a value of ₹62,452.70 lakhs, while the options segment's notional value stood at an impressive ₹7,447.65 crores, culminating in a total derivatives value of approximately ₹630.46 crores.

The underlying stock price closed at ₹1,406, having touched an intraday high of ₹1,413, representing a 2.44% gain on the day. This price movement outperformed the beverages sector, which rose by 1.13%, and the broader Sensex, which gained a modest 0.33%. The stock's 1-day return of 2.62% further underscores the positive momentum.

Market Positioning and Trend Reversal

United Spirits has reversed its short-term downtrend after two consecutive days of decline, signalling renewed investor confidence. The stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which is a technical indication of sustained bullishness. However, delivery volumes have declined by 24.46% compared to the 5-day average, suggesting that while speculative interest is rising, actual investor participation in terms of stock holding is somewhat subdued.

This divergence between rising derivatives activity and falling delivery volumes may imply that traders are increasingly relying on derivatives to express directional views rather than outright stock purchases. The liquidity profile remains healthy, with the stock supporting trade sizes of up to ₹0.91 crore based on 2% of the 5-day average traded value, ensuring ease of execution for institutional players.

Mojo Score and Analyst Ratings

United Spirits currently holds a Mojo Score of 42.0, which places it in the 'Sell' category, a downgrade from its previous 'Hold' rating as of 19 Jan 2026. The downgrade reflects concerns over valuation and near-term growth prospects despite the recent price uptick. The company’s market capitalisation stands at ₹1,01,247 crore, categorising it as a mid-cap stock within the beverages sector.

The market cap grade is rated 2, indicating moderate size and liquidity relative to peers. This rating, combined with the recent surge in derivatives activity, suggests that while speculative interest is growing, fundamental caution remains among institutional analysts.

Interpreting the Open Interest Surge

The 10.04% increase in open interest is significant in the context of United Spirits’ recent price action. Rising OI alongside a price increase typically signals fresh long positions being initiated, reflecting bullish sentiment among traders. The fact that the stock outperformed its sector and the Sensex on the same day supports this interpretation.

However, the decline in delivery volumes indicates that these positions may be predominantly speculative or hedging in nature rather than driven by long-term accumulation. This pattern is common in mid-cap stocks where derivatives provide a more capital-efficient way to express directional views.

Moreover, the large notional value in options contracts suggests that market participants are actively using options strategies, possibly to hedge or leverage their positions amid ongoing sector volatility.

Sector Context and Broader Market Implications

The beverages sector has shown resilience in recent weeks, supported by steady consumer demand and improving macroeconomic conditions. United Spirits, as a leading player, is often viewed as a bellwether for the segment. The stock’s ability to trade above all major moving averages reinforces its technical strength relative to peers.

Investors should note that the beverages sector’s 1-day return of 1.13% on 23 Feb 2026 was modest compared to United Spirits’ 2.62%, indicating stock-specific factors at play. These may include expectations of better earnings, new product launches, or favourable regulatory developments.

Investor Takeaways and Outlook

For investors, the surge in open interest and volume in United Spirits’ derivatives market signals increased market attention and potential for near-term price volatility. The technical indicators are supportive of a bullish trend, but the downgrade in Mojo Grade to 'Sell' advises caution.

Given the mixed signals — rising speculative activity but falling delivery volumes — investors should carefully monitor upcoming quarterly results, sector developments, and broader market trends before committing to fresh positions. The stock’s liquidity profile remains adequate for institutional trades, but the mid-cap status means it can be more susceptible to swings than large-cap peers.

Overall, United Spirits appears poised for a potential upward move, but the current market positioning suggests that traders are hedging their bets amid some uncertainty. A close watch on open interest trends and price action in the coming sessions will be crucial to gauge the sustainability of this momentum.

Summary

United Spirits Ltd’s recent 10.04% increase in open interest, combined with a 2.62% price gain and outperformance of the beverages sector, highlights a shift towards bullish market positioning. Despite a downgrade to a 'Sell' Mojo Grade, the stock’s technical strength and active derivatives trading indicate growing investor interest. However, subdued delivery volumes suggest caution, with speculative activity dominating. Investors should weigh these factors carefully amid evolving sector dynamics and broader market conditions.

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