Open Interest and Volume Dynamics
The latest data reveals that Waaree Energies’ open interest (OI) rose sharply from 19,974 to 28,649 contracts, an increase of 8,675 contracts or 43.43%. This surge in OI is accompanied by a substantial volume of 76,269 contracts traded, indicating strong participation in the derivatives market. The futures segment alone accounted for a notional value of approximately ₹68,543 lakhs, while options contributed an overwhelming ₹36,275.99 crores, culminating in a total derivatives value of ₹81,567.3 lakhs.
This spike in open interest, coupled with elevated volumes, suggests that market participants are actively building positions, likely anticipating further price movement. The underlying stock price has also been on an upward trajectory, closing at ₹3,170 with an intraday high of ₹3,174.8, marking a 13.58% gain on the day.
Price Performance and Market Context
Waaree Energies has outperformed its sector and broader market indices, delivering a 13.99% return in a single day compared to the renewable energy sector’s 4.41% and the Sensex’s 3.06%. The stock has recorded gains for two consecutive sessions, accumulating a 19.68% return over this period. Notably, it opened with a gap-up of 9.76%, signalling strong buying interest from the outset.
Technical indicators reinforce this bullish momentum, with the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This alignment of moving averages typically signals sustained upward momentum and investor confidence in the stock’s prospects.
Investor Participation and Liquidity Considerations
Despite the strong price action and derivatives activity, delivery volumes have declined by 14.81% to 3.62 lakh shares on 2 February, compared to the five-day average. This suggests that while short-term speculative interest in derivatives is rising, longer-term investor participation via delivery may be moderating. However, liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹6.63 crore, ensuring smooth execution for institutional and retail investors alike.
Only 1% make it here. This Large Cap from the Gems, Jewellery And Watches sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- - Highest rated stock selection
- - Multi-parameter screening cleared
- - Large Cap quality pick
Market Positioning and Directional Bets
The pronounced increase in open interest alongside rising prices typically indicates fresh long positions being established, reflecting bullish sentiment among traders. The substantial notional value in options suggests that investors are also employing strategies such as call buying or bull call spreads to capitalise on anticipated upside moves.
Given the stock’s recent upgrade from a Hold to a Buy rating by MarketsMOJO on 9 December 2025, with a Mojo Score of 78.0, market participants appear to be aligning their positions accordingly. The upgrade reflects improved fundamentals and positive outlook within the Other Electrical Equipment sector, particularly in renewable energy-related businesses.
Furthermore, the stock’s mid-cap market capitalisation of ₹91,642.39 crore positions it well within the growth segment, attracting both momentum and value investors. The sector’s overall gain of 4.53% on the day underscores a favourable industry environment supporting Waaree Energies’ rally.
Technical and Fundamental Outlook
From a technical perspective, the stock’s ability to sustain above key moving averages and maintain strong volume support near the lower price range suggests healthy accumulation. The weighted average price indicates that most volume traded closer to the day’s low, which can be interpreted as buyers stepping in at lower levels to support the rally.
Fundamentally, the company’s improved mojo grade from Hold to Buy signals enhanced financial health and growth prospects. This upgrade, combined with the surge in derivatives activity, points to a consensus among analysts and traders that Waaree Energies is poised for further appreciation.
Thinking about Waaree Energies Ltd? Our real-time Verdict report breaks down everything – from financial health and peer comparison to technical signals and fair valuation for this mid-cap stock!
- - Real-time Verdict available
- - Financial health breakdown
- - Fair valuation calculated
Implications for Investors
Investors should note that the sharp rise in open interest and volume in derivatives often precedes significant price moves, either continuation or reversal. In Waaree Energies’ case, the alignment of positive technical signals, sectoral tailwinds, and fundamental upgrades suggests a strong likelihood of continued upward momentum.
However, the decline in delivery volumes indicates some caution among long-term holders, possibly reflecting profit booking or rotation into other stocks. This mixed participation warrants close monitoring of price action and open interest trends in coming sessions to confirm the sustainability of the rally.
Given the stock’s liquidity profile and market cap grade of 2, it remains accessible for institutional investors seeking mid-cap exposure in the renewable energy space. The current market environment favours selective accumulation of fundamentally sound and technically strong stocks like Waaree Energies.
Conclusion
Waaree Energies Ltd’s recent surge in open interest and trading volumes in the derivatives market, coupled with strong price performance and an upgrade in mojo rating, highlights growing investor confidence. The stock’s outperformance relative to its sector and the broader market, supported by robust technical indicators, positions it as a compelling mid-cap opportunity in the Other Electrical Equipment sector.
Market participants should remain vigilant to evolving open interest patterns and delivery volumes to gauge the durability of this bullish trend. Overall, the data points to a positive directional bias, with investors increasingly positioning for further gains in Waaree Energies.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
