Waaree Energies Ltd Gains 10.76%: 7 Key Factors Driving the Week’s Rally

2 February: Intraday Surge Signals Renewed Momentum

Waaree Energies Ltd began the week on a strong note, registering an intraday high of Rs.2,782.95 on 2 February 2026, a 5.06% increase from the previous close. The stock closed at Rs.2,794.20, up 0.25% for the day, outperforming the Sensex which declined 1.03%. This intraday strength was supported by the stock trading above its 5-day and 20-day moving averages, signalling short-term bullish momentum despite remaining below longer-term averages. The broader market recovery and mega-cap leadership provided a conducive environment for this mid-cap stock’s outperformance.

3 February: Multiple Intraday Highs and Institutional Interest Drive Sharp Rally

On 3 February, Waaree Energies Ltd demonstrated exceptional strength, opening with a 7.44% gap up and reaching an intraday high of Rs.3,124.95, a 10.09% gain on the day. The stock closed at Rs.3,102.05, surging 11.02%, significantly outperforming the Sensex’s 2.63% gain and the Renewable Energy sector’s 3.64% advance. This rally was accompanied by heavy trading volumes of 24,87,586 shares and a traded value of ₹76,416.9 lakhs, reflecting strong institutional participation. The stock’s price action remained above key moving averages except the 100-day average, indicating sustained short- to long-term bullishness with some resistance ahead.

3 February: Surge in Derivatives Activity Highlights Bullish Sentiment

The stock’s bullish momentum was further underscored by a sharp surge in derivatives activity on 3 February. Open interest in Waaree Energies’ contracts jumped 49.16% to 29,793 contracts, with futures and options notional values reaching ₹1,08,974.39 lakhs. Call option contracts at the 3,500 strike price saw 16,093 contracts traded, generating a turnover of ₹1,401.38 lakhs, signalling strong speculative interest in further upside potential. Despite this, delivery volumes declined by 14.81%, suggesting that short-term traders and derivatives players were driving the rally rather than long-term holders. The stock’s price remained above its 5-day, 20-day, 50-day, and 200-day moving averages, reinforcing the positive technical outlook.

4 February: Valuation Upgrade Reflects Heightened Price Attractiveness

On 4 February, Waaree Energies Ltd’s valuation parameters shifted notably, with the company moving from an expensive to a very expensive rating. The price-to-earnings ratio stood at 25.54, while the price-to-book value ratio surged to 7.77, reflecting strong market confidence. Enterprise value multiples such as EV/EBITDA at 16.01 and EV/EBIT at 19.07 further underscored this premium valuation. Robust financial metrics supported this stance, with a return on capital employed of 52.91% and return on equity of 23.53%. The stock closed at Rs.3,103.00, up 11.02% for the day, continuing its outperformance relative to the Sensex and sector peers.

5-6 February: Consolidation and Moderate Gains Close the Week

Following the sharp gains earlier in the week, Waaree Energies saw a slight correction on 5 February, closing at Rs.3,071.70, down 1.01% amid lower volumes. The Sensex also declined 0.53% that day. However, the stock rebounded on 6 February, gaining 0.51% to close at Rs.3,087.30, maintaining the weekly upward trajectory. The stock’s ability to hold above Rs.3,000 despite the minor pullback reflects underlying strength and investor confidence. The Sensex closed marginally higher by 0.10% on the final trading day, underscoring the stock’s outperformance over the week.

Key Takeaways

Strong Weekly Outperformance: Waaree Energies Ltd’s 10.76% weekly gain significantly outpaced the Sensex’s 1.51%, highlighting robust investor demand and positive sentiment.

Institutional and Derivatives Activity: Heavy institutional buying and a near 50% surge in open interest, alongside record call option volumes, indicate strong market conviction and speculative interest in further upside.

Technical Strength with Resistance Ahead: The stock consistently traded above short- and medium-term moving averages, though resistance near the 100-day average remains a key level to watch.

Valuation Premium Reflects Confidence: The shift to a very expensive valuation grade, supported by strong ROCE and ROE, suggests the market is pricing in sustained growth and operational excellence.

Volume and Delivery Trends: While trading volumes surged, delivery volumes declined slightly, signalling that short-term traders and derivatives players are currently driving momentum more than long-term holders.

Sector Tailwinds: The Renewable Energy sector’s positive performance provided a favourable backdrop, with Waaree Energies leading gains within the Other Electrical Equipment industry.

Conclusion

Waaree Energies Ltd’s week was marked by a strong rally driven by multiple factors including intraday highs, institutional interest, and a surge in derivatives activity. The stock’s ability to outperform the Sensex and sector peers amid a volatile market environment underscores its current market strength. The valuation upgrade to very expensive reflects investor confidence in the company’s fundamentals and growth prospects, though resistance near the 100-day moving average warrants cautious monitoring. Overall, the stock’s robust momentum and positive technical signals position it as a notable performer in the Other Electrical Equipment sector heading into the next week.

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