Robust Price Performance and Market Context
On 3 February 2026, Waaree Energies Ltd (underlying ticker: WAAREEENER) outperformed its sector by a substantial margin, delivering a 12.67% gain compared to the Renewable Energy sector’s 4.17% rise and the broader Sensex’s 2.80% advance. The stock opened with a notable gap up of 9.76%, reaching an intraday high of ₹3,195, representing a 14.31% increase from the previous close. This price action marks the continuation of a two-day rally, during which the stock has appreciated by 19.04%, underscoring strong investor confidence.
Despite this upward momentum, the weighted average price of traded volumes was closer to the day’s low, suggesting some profit-taking or cautious positioning near the peak levels. The stock currently trades above its 5-day, 20-day, 50-day, and 200-day moving averages, though it remains below the 100-day moving average, indicating a mixed technical picture that may warrant close monitoring by traders.
Call Option Activity Highlights Bullish Sentiment
The most active call option contract for Waaree Energies Ltd is the February 24, 2026 expiry with a strike price of ₹3,500. This contract saw 16,093 contracts traded, generating a turnover of ₹1401.38 lakhs, with an open interest of 1,903 contracts. The underlying stock price at ₹3,169.90 is currently below this strike, indicating that traders are positioning for a potential upside move above ₹3,500 within the next three weeks.
This surge in call option volume and open interest at a strike price approximately 10% above the current market price reflects a strong bullish bias. Investors appear confident that Waaree Energies Ltd will continue its upward trajectory, possibly driven by favourable sector dynamics and company-specific catalysts.
Notably, the stock’s market capitalisation stands at ₹88,483 crores, categorising it as a mid-cap stock with sufficient liquidity to support active trading. The delivery volume on 2 February was 3.62 lakh shares, though this represented a 14.81% decline against the five-day average, suggesting some reduction in investor participation despite the price gains.
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Mojo Score Upgrade Reflects Improving Fundamentals
Waaree Energies Ltd’s recent upgrade from a Hold to a Buy rating by MarketsMOJO on 9 December 2025, accompanied by a Mojo Score of 78.0, reinforces the positive outlook. This upgrade reflects improved financial metrics, quality grades, and trend assessments that have enhanced the stock’s investment appeal. The company’s market cap grade of 2 indicates a solid mid-cap standing, balancing growth potential with manageable risk.
The upgrade aligns with the stock’s recent price action and option market activity, suggesting that institutional and retail investors alike are recognising the company’s strengthening fundamentals and sector tailwinds.
Sectoral Tailwinds and Industry Positioning
Operating within the Other Electrical Equipment industry, Waaree Energies Ltd benefits from the broader Renewable Energy sector’s growth, which has gained 4.17% on the day. The company’s focus on electrical equipment solutions positions it favourably to capitalise on increasing demand for sustainable energy infrastructure and electrification initiatives across India.
While the stock’s liquidity is sufficient for sizeable trades, with a 2% threshold of the five-day average traded value supporting trade sizes up to ₹6.63 crores, investors should remain mindful of the recent dip in delivery volumes, which may indicate some short-term profit booking or cautious positioning ahead of the February expiry.
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Implications for Investors and Market Outlook
The pronounced call option activity at the ₹3,500 strike price expiring on 24 February 2026 suggests that investors are positioning for a near-term rally exceeding 10% from current levels. This bullish sentiment is supported by the stock’s recent price gains, technical positioning above key moving averages, and the fundamental upgrade by MarketsMOJO.
However, the mixed signals from volume patterns and the stock’s position relative to the 100-day moving average advise caution. Investors should monitor open interest trends and delivery volumes closely to gauge sustained buying interest. Additionally, sector developments and broader market conditions will play a critical role in determining whether Waaree Energies Ltd can maintain its momentum.
For traders, the liquidity profile and active options market provide ample opportunities to implement strategies that capitalise on expected volatility and directional moves. The current environment favours bullish strategies such as buying calls or bull call spreads, particularly given the strong institutional interest reflected in the open interest data.
In summary, Waaree Energies Ltd stands out as a compelling mid-cap stock with robust call option activity signalling positive investor sentiment. The combination of fundamental upgrades, sector tailwinds, and technical strength positions the stock well for potential gains in the near term, though prudent risk management remains essential.
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