Robust Call Option Volumes Indicate Bullish Positioning
Data from the derivatives market reveals that ABB India Ltd’s call options expiring on 24 February 2026 have seen substantial trading volumes, with the 6,000 strike price leading the pack. A total of 16,591 contracts were traded at this strike, generating a turnover of approximately ₹2,116.18 lakhs. This was followed by the 6,100 strike with 7,810 contracts traded and a turnover of ₹597.86 lakhs, and the 6,200 strike with 6,571 contracts traded, amounting to ₹287.48 lakhs in turnover.
Open interest figures further corroborate this bullish stance, with the 6,000 strike holding the highest open interest of 2,316 contracts, followed by 1,829 contracts at the 6,200 strike and 1,131 contracts at 6,100. The underlying stock price at ₹5,990 is just shy of the 6,000 strike, suggesting traders are positioning for a potential breakout above this level in the coming days.
Stock Performance and Technical Indicators Support Optimism
ABB India Ltd’s stock performance today has been impressive, with a day’s gain of 5.35%, outperforming the heavy electrical equipment sector’s 2.05% rise and the broader Sensex’s marginal 0.07% increase. The stock touched an intraday high of ₹5,993, closing just 4.61% below its 52-week high of ₹6,260. This proximity to the yearly peak underscores the stock’s strong momentum.
Technical analysis shows ABB trading above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained uptrend. Such alignment of moving averages often attracts further buying interest, reinforcing the bullish narrative.
Sectoral Context and Market Capitalisation
Operating within the heavy electrical equipment industry, ABB India Ltd is a large-cap stock with a market capitalisation of ₹1,21,119 crores. The sector itself has gained 2.05% today, reflecting a positive environment for companies involved in electrical infrastructure and equipment. ABB’s mojo score has improved to 50.0, earning a ‘Hold’ grade, upgraded from a previous ‘Sell’ rating on 29 January 2026. This upgrade indicates a stabilisation in the company’s outlook, though investors are advised to monitor developments closely.
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Investor Participation and Liquidity Considerations
Despite the strong price action and option activity, delivery volumes have declined, with a 40.03% drop in delivery volume to 48.71 thousand shares on 19 February compared to the 5-day average. This suggests some investors may be adopting a more cautious stance or engaging in short-term trading strategies rather than long-term accumulation.
Liquidity remains adequate for sizeable trades, with the stock’s traded value supporting transactions up to ₹1.89 crores based on 2% of the 5-day average traded value. This liquidity profile is favourable for institutional investors and active traders looking to capitalise on the current momentum.
Options Expiry Patterns and Market Expectations
The concentration of call option activity at strike prices slightly above the current market price indicates a market expectation of a near-term rally. The 24 February expiry is a critical date, with traders positioning for potential gains if ABB India Ltd breaches the ₹6,000 to ₹6,200 range. Such positioning often leads to increased volatility as expiry approaches, offering opportunities for both directional bets and hedging strategies.
Market participants should also note the open interest build-up at these strikes, which can act as support or resistance levels in the underlying stock price. A sustained move above these strikes could trigger further call buying, while failure to breach them might result in profit-taking and a pullback.
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Outlook and Strategic Considerations for Investors
ABB India Ltd’s recent upgrade to a ‘Hold’ mojo grade reflects a cautious but improving outlook. Investors should weigh the strong technical momentum and bullish option positioning against the moderate mojo score and sector dynamics. The company’s large-cap status and leadership in heavy electrical equipment provide a solid foundation, but the stock’s valuation and near-term catalysts require close monitoring.
For traders, the current option activity offers a window to capitalise on expected price movements ahead of expiry. Those bullish on ABB may consider call options at or near the 6,000 strike, while more conservative investors might prefer to wait for confirmation of a breakout above the 6,200 level.
Overall, ABB India Ltd remains a key stock to watch within the heavy electrical equipment sector, with option market signals pointing to a potentially positive near-term trajectory.
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