Waaree Energies Ltd Sees Sharp Open Interest Surge Amid Strong Market Momentum

Open Interest Spike and Market Positioning

On 3 February 2026, Waaree Energies Ltd (symbol: WAAREEENER) recorded a remarkable increase in open interest (OI) in its futures and options contracts. The latest OI stood at 29,533 contracts, up from 19,974 the previous day, marking a substantial 47.86% rise. This sharp uptick in OI, coupled with a volume of 1,07,761 contracts traded, indicates a surge in market participation and fresh positioning by traders.

The futures value traded was ₹83,764.55 lakhs, while the options segment saw an astronomical notional value of ₹53,049.85 crores, culminating in a total derivatives turnover of ₹1,02,161.29 lakhs. Such elevated activity underscores the growing interest in Waaree Energies’ derivatives, suggesting that market participants are actively taking positions, possibly anticipating further price movements.

Price Action and Relative Performance

Waaree Energies Ltd’s underlying stock price closed at ₹3,147, having opened with a gap up of 9.76% and touched an intraday high of ₹3,195, representing a 14.31% rise on the day. The stock outperformed its sector, which gained 4.13%, by 7.99%, and also surpassed the Sensex and sector returns, which were 2.80% and 3.91% respectively. Over the last two trading sessions, the stock has delivered a cumulative return of 17.86%, signalling strong bullish momentum.

Notably, the weighted average price of traded volumes was closer to the day’s low, indicating that while the stock rallied, significant trading occurred near lower price levels, possibly reflecting profit booking or cautious accumulation by investors.

Technical Indicators and Moving Averages

From a technical perspective, Waaree Energies is trading above its 5-day, 20-day, 50-day, and 200-day moving averages, which typically signals a positive trend and short-to-medium term strength. However, it remains below its 100-day moving average, suggesting some resistance at that level and room for further upside if that hurdle is overcome.

This mixed technical picture may be contributing to the increased open interest, as traders position themselves for a potential breakout or consolidation phase depending on upcoming market catalysts.

Investor Participation and Liquidity Considerations

Despite the strong price gains and open interest surge, investor participation in terms of delivery volumes has shown a slight decline. On 2 February 2026, delivery volume was 3.62 lakh shares, down 14.81% compared to the five-day average. This suggests that while speculative activity in derivatives is rising, actual long-term investor commitment via delivery is somewhat subdued.

Liquidity remains adequate for sizeable trades, with the stock’s traded value representing approximately 2% of its five-day average, allowing for trade sizes up to ₹6.63 crore without significant market impact. This balance of liquidity and volatility is attractive for institutional and retail traders alike.

Fundamental and Market Sentiment Update

Waaree Energies Ltd, operating in the Other Electrical Equipment industry, is classified as a mid-cap company with a market capitalisation of ₹89,882.03 crore. The company’s Mojo Score has improved to 78.0, reflecting a Buy rating, upgraded from Hold on 9 December 2025. This upgrade signals enhanced confidence in the company’s fundamentals and growth prospects.

The sector’s positive momentum, driven by renewable energy trends and increasing electrification, supports Waaree Energies’ outlook. The stock’s recent outperformance relative to the sector and broader market indices further validates this bullish stance.

Directional Bets and Derivatives Strategy

The pronounced increase in open interest, especially in futures and options, suggests that traders are positioning for continued upward price movement. The 47.86% rise in OI alongside a 12.13% day change in the stock price indicates fresh long positions or bullish spreads being established.

Options market data, with a notional value exceeding ₹53,000 crore, points to significant hedging and speculative activity. Market participants may be employing strategies such as call buying or bull call spreads to capitalise on anticipated gains, while some may be using options to hedge existing exposures.

Given the stock’s technical setup and fundamental upgrade, the derivatives activity aligns with a constructive market view, although the presence of some resistance at the 100-day moving average suggests cautious optimism.

Outlook and Investor Takeaways

Waaree Energies Ltd’s recent surge in open interest and strong price performance highlight a growing bullish sentiment among market participants. The upgrade to a Buy rating with a Mojo Score of 78.0 reinforces the company’s favourable outlook within the Other Electrical Equipment sector.

Investors should monitor the stock’s ability to sustain gains above key moving averages, particularly the 100-day average, which currently acts as a resistance level. The decline in delivery volumes suggests that while speculative interest is high, long-term investor conviction may require further confirmation.

Given the stock’s liquidity profile and active derivatives market, traders can consider tactical positions aligned with the prevailing momentum, while also managing risk through options strategies. The broader renewable energy sector’s positive trajectory adds an additional tailwind to Waaree Energies’ prospects.

Overall, the combination of fundamental upgrades, technical strength, and heightened derivatives activity positions Waaree Energies Ltd as a compelling stock to watch in the near term.

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