Waaree Energies Ltd Sees Sharp Open Interest Surge Amid Mixed Price Action

Open Interest and Volume Dynamics

The latest data reveals that Waaree Energies’ open interest rose from 28,290 contracts to 33,404, an increase of 5,114 contracts. This 18.08% jump in OI is accompanied by a total volume of 43,070 contracts traded, indicating robust participation in the derivatives market. The futures segment alone accounted for a value of approximately ₹26,433.54 lakhs, while options contributed a staggering ₹20,349.19 crores in notional value, culminating in a combined derivatives turnover of nearly ₹29,863.57 lakhs.

This surge in OI, coupled with high volumes, often suggests fresh directional bets or the unwinding of existing positions. In Waaree Energies’ case, the increase in OI alongside a decline in price hints at a possible build-up of short positions or hedging activity by institutional players.

Price Performance and Market Positioning

On 18 Feb 2026, Waaree Energies’ stock price declined by 3.03%, underperforming its sector by 3.06% and the Sensex by 2.8 times (sector down 0.36%, Sensex down 0.23%). The stock has been on a downward trajectory for two consecutive sessions, losing 5.56% over this period. Intraday, the share touched a low of ₹2,931.7, nearly 4% below the previous close, with the weighted average price skewed towards the lower end of the day’s range, signalling selling pressure.

Interestingly, the stock’s price remains above its 20-day and 50-day moving averages but below the 5-day, 100-day, and 200-day averages. This mixed technical picture suggests short-term weakness amid longer-term support levels. Delivery volumes have also declined by 15.26% compared to the five-day average, indicating reduced investor participation in the cash segment, which may be contributing to the price softness despite active derivatives trading.

Implications of Rising Open Interest

The 18.08% rise in open interest is significant for a mid-cap stock like Waaree Energies, which has a market capitalisation of ₹85,603 crores. Such a surge often reflects increased hedging or speculative activity. Given the stock’s recent price weakness, the rising OI could be attributed to fresh short positions or protective puts being bought by investors anticipating further downside or volatility.

Alternatively, the increase in OI might also represent fresh long positions being established at lower price levels, as some traders may view the recent dip as a buying opportunity given the company’s favourable mojo score of 78.0 and an upgraded mojo grade from Hold to Buy as of 9 Dec 2025. This upgrade reflects improved fundamentals and positive outlook, which could attract strategic accumulation despite near-term price fluctuations.

Technical and Fundamental Context

Waaree Energies’ technical indicators present a nuanced picture. The stock’s position above the 20-day and 50-day moving averages suggests medium-term support, yet the failure to hold above the 5-day and longer-term averages signals short-term weakness. The decline in delivery volumes to 2.05 lakh shares on 17 Feb 2026, down 15.26% from the five-day average, further underscores waning investor conviction in the cash market.

From a fundamental perspective, the company’s mojo score of 78.0 and upgraded mojo grade to Buy reflect strong financial health and positive earnings momentum. However, the market cap grade of 2 indicates mid-cap status, which often entails higher volatility and sensitivity to broader market swings.

Market Sentiment and Potential Directional Bets

The combination of rising open interest and falling prices typically points to increased short interest or hedging activity. Traders may be positioning for a correction or increased volatility in Waaree Energies shares. The substantial notional value in options contracts suggests that market participants are actively using options strategies, possibly protective puts or spreads, to manage risk amid uncertain near-term price action.

Conversely, the upgraded mojo grade and strong fundamentals may encourage contrarian investors to accumulate on dips, anticipating a rebound once short-term pressures ease. The stock’s liquidity, with a trade size capacity of ₹4.44 crores based on 2% of the five-day average traded value, supports active trading and efficient price discovery.

Outlook and Investor Considerations

Investors should closely monitor the evolving open interest and volume patterns in Waaree Energies’ derivatives market as a barometer of market sentiment. The current surge in OI amid price weakness suggests a tug-of-war between bears and bulls, with potential for increased volatility in the near term.

Given the company’s upgraded mojo grade and solid fundamentals, long-term investors may view recent price dips as attractive entry points, provided broader market conditions remain favourable. However, short-term traders should exercise caution and consider hedging strategies to mitigate downside risks.

Overall, Waaree Energies Ltd’s derivatives activity signals heightened interest and positioning shifts that warrant close attention from market participants seeking to capitalise on emerging trends in this mid-cap electrical equipment stock.

Summary

To summarise, Waaree Energies Ltd has experienced an 18.08% increase in open interest, reflecting active positioning in its derivatives segment. Despite this, the stock has underperformed its sector and broader indices, with price action indicating short-term weakness. The interplay of rising OI, declining delivery volumes, and mixed moving average signals suggests a complex market environment where both bullish and bearish forces are at work. Investors should weigh the company’s strong mojo score and upgraded rating against near-term volatility risks when making investment decisions.

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