Polycab India Ltd opened at 7090 and moved decisively higher during the session, recording a high of 7455 and a low of 7087 before closing near the top of the range at 7439, forming a strong bullish Marubozu candle. This price behaviour reflects clear buyer dominance throughout the session, reinforced by the expansion in volume alongside rising price. RSI has delivered a breakout reading at 53.16, remaining balanced rather than overextended, which places Polycab in a consolidation-to-expansion phase rather than an exhaustion zone. MACD readings of -74.26 against a signal of -84.8 with a positive histogram of 10.54 confirm a bullish crossover, indicating strengthening momentum and buyers firmly in control. The stochastic reading at 95.57 signals an overbought condition, highlighting a potential reversible or pause area, while CCI at 13.13 remains positive and supportive of the prevailing trend. ADX reflects a strong and sustained trend environment, suggesting directional continuity rather than randomness. Volume for the session stood at 630,329 against an average of 300,640, placing today’s activity within normal distribution yet clearly exceptional in magnitude, pointing toward institutional participation rather than speculative spikes. The BB Squeeze has released, indicating a possible breakout phase, while EMA compression further supports the case for directional expansion. Relative strength remains favourable, with the stock outperforming the broader market. The combination of rising price and rising volume validates the strength of the bullish candle and confirms buyer control. Overall, the setup reflects a neutral but constructive market structure with balanced indicators, awaiting further directional confirmation. The final outlook remains characterised by moderate momentum, a developing trend, elevated risk, and very high volume.
From a derivatives standpoint, Polycab is displaying a clear bullish bias with measured confidence, not aggressive or speculative positioning. Participation is concentrated in call options close to the spot price, especially around the 7,400 strike, indicating that traders are expressing directional views with structure and intent, rather than chasing far out-of-the-money strikes. The relatively higher delta on these calls shows that option prices are responding meaningfully to spot movement, reflecting expectations of continuation rather than sideways consolidation.
A key signal within this structure is short covering in near-ATM calls. Open interest has declined while volumes have expanded sharply, suggesting that earlier call sellers are exiting positions as price moves higher. This supports the recent upside move but also highlights an important condition: for the trend to extend, fresh long positions must continue to enter. Short covering can initiate momentum, but sustained trends require new participation.
Volatility conditions remain supportive. Implied volatility is in a low-to-moderate range, and IV rank is relatively subdued, implying that options are reasonably priced rather than inflated. Such an environment generally favours directional option buying or controlled debit structures, though time decay remains a factor if price action slows. Volatility strategies such as straddles and strangles suggest that the market is pricing in a meaningful move, but not an explosive one. Expected moves are broadly aligned with premiums, keeping volatility trades in a watchful zone. Among these, lower-cost strangles appear more efficient if price expansion develops, while neutral income structures like iron condors are better suited only if the stock remains range-bound and should be avoided if momentum strengthens.
The options chain itself reflects a well-organised and healthy structure. Higher call strikes between 7,600 and 7,900 are witnessing long build-up, indicating fresh bullish bets being added as price advances. Closer to the money, particularly at 7,300, 7,400, and 7,500, the presence of short covering reinforces the idea of pressure on sellers rather than exhaustion among buyers. This blend of near-ATM short covering and higher-strike long build-up represents a constructive bullish setup, not a late-stage or overstretched move. Strong volume across these call strikes further confirms that the move is well participated and institutionally aligned, rather than driven by thin liquidity. Delta positioning remains practical and balanced, showing traders are seeking continuation while managing risk. On the put side, heavy open interest additions accompanied by falling premiums point to put short build-up. This typically reflects confidence that price will hold above these strike levels, effectively building a support base below the current market price, especially around the 7,300 zone and lower. Implied volatility across puts and calls remains controlled, with no signs of panic hedging or fear-driven demand, suggesting a market that is calm, confident, and structured.
In simple terms, the derivatives market is working with the price trend, not against it. The overall structure points to a disciplined, trend-aligned environment where the upside bias remains intact but still depends on continued participation and follow-through. Traders appear optimistic, not euphoric, which keeps the setup constructive and probability-driven rather than emotionally charged. This measured derivatives behaviour aligns well with the broader technical picture and reinforces the strength of the ongoing trend without signaling excess.
Demand–Supply Zone Interpretation (Educational View)
The current price structure of Polycab is supported by a well-defined demand–supply framework across both swing and lower timeframes. Multiple swing demand zones are visible below the current price, with the nearest cluster around the 7,295–7,250 region, followed by deeper accumulation areas near 7,114–7,070 and 6,817–6,782. These zones reflect areas where price has historically found participation and may attract interest again if revisited. On the upside, swing supply zones between 7,670–7,710 and 7,757–7,816 mark regions where selling pressure has previously emerged, making them important reference points for observing price behaviour. From a shorter-term perspective, lower timeframe demand zones around 7,397–7,362 and 7,320–7,300 define immediate support pockets where reactions may occur during intraday or short-term pullbacks. Correspondingly, lower timeframe supply zones near 7,436–7,462 and 7,630–7,664 highlight areas where price may face near-term resistance. Additionally, the presence of aggressive supply zones clustered around 7,633–7,664 suggests regions where supply can appear quickly if price approaches with momentum. Collectively, these zones do not predict direction but serve as a structured map to observe how price interacts with demand and supply, helping traders focus on reaction and confirmation rather than anticipation.
⚠️ STWP Educational & Legal Disclaimer
This content is shared strictly for educational and informational purposes only. All discussions, examples, charts, price levels, and option structures are illustrative in nature and do not constitute any buy, sell, or hold recommendation. STWP does not offer investment advice, trading signals, tips, or personalized financial guidance, and is not a SEBI-registered intermediary or research analyst. The analysis presented is based on publicly available market data and observed price–derivative behaviour, which is dynamic and subject to change without notice. Financial markets involve inherent risk, and derivatives carry heightened risk, including the possibility of substantial capital loss. Variables such as option premiums, implied volatility, open interest, delta, and other Greeks can change rapidly and unpredictably.
Readers are solely responsible for their trading decisions, position sizing, and risk management. Before taking any investment or trading action, consult a SEBI-registered investment advisor. STWP, its associates, and affiliates shall not be responsible for any direct or indirect loss arising from the use of this material. Past patterns or historical behaviour should never be treated as guarantees of future outcomes.
Position Status: No active position in this instrument at the time of analysis
Data Source: TradingView & NSE India
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