Waaree Energies Sees Significant Open Interest Surge Amid Mixed Price Action

Open Interest and Volume Dynamics

On 31 Dec 2025, Waaree Energies recorded an open interest (OI) of 3,867 contracts, up from 3,413 the previous day, marking an absolute increase of 454 contracts or 13.3%. This rise in OI is significant, especially given the stock’s recent price behaviour, which has seen a consecutive six-day decline resulting in a cumulative loss of 4.33%. The volume for the day stood at 2,282 contracts, indicating active trading interest in the derivatives market.

The futures segment contributed a value of approximately ₹2,432.76 lakhs, while the options segment exhibited a substantially larger notional value of ₹10,379.21 crores. The combined derivatives turnover reached ₹2,568.78 lakhs, underscoring the substantial liquidity and investor engagement in Waaree Energies’ contracts.

Price Performance and Moving Averages

Despite the surge in derivatives activity, the underlying stock price has struggled to gain upward momentum. Waaree Energies closed at ₹2,961, marginally down by 0.27% on the day, yet outperforming its sector, which declined by 0.83%. The Sensex, by contrast, edged up by 0.06%, reflecting a mixed market environment.

Technically, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish trend in the short to long term. This technical backdrop, combined with the recent six-day losing streak, suggests that the market remains cautious on the stock’s near-term prospects.

Rising Investor Participation

One of the most striking developments is the surge in delivery volume, which reached 3.01 lakh shares on 31 Dec, nearly doubling (99.91% increase) the five-day average delivery volume. This indicates that more investors are holding shares rather than trading intraday, reflecting increased conviction or accumulation at current price levels.

Liquidity remains robust, with the stock’s traded value supporting a trade size of approximately ₹3.48 crores based on 2% of the five-day average traded value. This liquidity profile favours institutional participation and larger trades without significant market impact.

Market Positioning and Potential Directional Bets

The increase in open interest alongside rising volumes in both futures and options suggests that market participants are actively repositioning themselves. The sizeable options notional value relative to futures indicates a preference for hedging or speculative strategies involving options contracts.

Given the stock’s current technical weakness, some investors may be taking protective put positions or engaging in spread strategies to capitalise on volatility. Conversely, the rising delivery volumes hint at accumulation by long-term investors who may be anticipating a turnaround or value realisation in the medium term.

Waaree Energies’ Mojo Score of 71.0 and an upgraded Mojo Grade from Hold to Buy as of 09 Dec 2025 further support a cautiously optimistic outlook. The upgrade reflects improved fundamentals or market sentiment, which may be encouraging investors to build positions despite recent price softness.

Sector and Market Context

Operating within the Other Electrical Equipment sector, Waaree Energies is classified as a mid-cap company with a market capitalisation of ₹85,141.71 crores. The sector has experienced mixed performance recently, with the stock outperforming its peers marginally on the day despite broader sector weakness.

This relative outperformance, combined with the derivatives market activity, suggests that investors are selectively bullish on Waaree Energies’ prospects compared to its sector peers. However, the stock’s position below all major moving averages indicates that any sustained rally will require a break above these technical barriers.

Implications for Investors

For investors, the surge in open interest and delivery volumes presents a nuanced picture. The derivatives market activity points to increased hedging and speculative interest, which could lead to heightened volatility in the near term. Meanwhile, the accumulation reflected in delivery volumes may signal confidence among long-term holders.

Given the stock’s current technical weakness, cautious investors might consider waiting for confirmation of a trend reversal before initiating fresh positions. Conversely, those with a higher risk appetite may explore options strategies to capitalise on expected volatility or directional moves.

Overall, the upgraded Mojo Grade to Buy and a solid Mojo Score of 71.0 provide a fundamental endorsement, suggesting that Waaree Energies could be poised for recovery once market conditions improve.

Conclusion

Waaree Energies Ltd’s recent open interest surge in derivatives, combined with rising delivery volumes and a complex price action backdrop, highlights evolving market sentiment and positioning. While the stock faces technical headwinds, the fundamental upgrade and active investor participation indicate potential for a turnaround. Market participants should closely monitor derivatives activity and price movements to gauge the sustainability of any emerging trends.

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