ABB India Ltd Sees Surge in Call Option Activity Amid Bullish Momentum

Robust Price Performance and Market Context

On 29 Jan 2026, ABB India Ltd (NSE: ABB), a heavyweight in the heavy electrical equipment industry, outperformed its sector by 5.3%, registering a one-day gain of 9.99% compared to the sector’s 3.83% and the Sensex’s marginal decline of 0.20%. The stock has been on a three-day winning streak, delivering a cumulative return of 17.45% during this period. Intraday, ABB touched a high of ₹5,533.5, marking a 9.72% rise from the previous close, and traded within a wide price range of ₹550, indicating strong volatility and active participation.

Notably, ABB’s weighted average traded price skewed closer to the day’s low, suggesting that while the stock surged, significant volume was absorbed at lower price points, potentially indicating accumulation by institutional investors. The stock currently trades above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – reinforcing its bullish technical stance.

Investor participation has also intensified, with delivery volumes rising to 1.43 lakh shares on 28 Jan, a 10.81% increase over the five-day average. This heightened liquidity supports the stock’s capacity to absorb larger trade sizes, with an estimated tradable value of ₹2.39 crore based on 2% of the five-day average traded value.

Heavy Call Option Activity Signals Bullish Positioning

The options market reveals a pronounced bullish bias towards ABB India Ltd, with call options at strike prices ₹5,500 and ₹6,000 for the 24 Feb 2026 expiry dominating activity. The ₹5,500 strike call saw 11,503 contracts traded, generating a turnover of approximately ₹2774.95 lakh, while the ₹6,000 strike call recorded 11,703 contracts with a turnover of ₹946.19 lakh. Open interest for these strikes stands robust at 1,462 and 1,470 contracts respectively, underscoring sustained investor interest ahead of expiry.

Given the underlying stock price of ₹5,512, the ₹5,500 strike call is slightly in-the-money, while the ₹6,000 strike remains out-of-the-money but evidently popular among traders anticipating further upside. The substantial volume and open interest at these strikes suggest that market participants are positioning for continued gains in ABB’s share price over the next month.

Such concentrated call option activity often precedes significant price moves, as traders hedge or speculate on directional trends. The elevated turnover and open interest levels indicate that ABB is a focal point for derivatives traders seeking leveraged exposure to the stock’s bullish momentum.

Fundamental and Technical Assessment

Despite the recent bullish price action, ABB India Ltd’s MarketsMOJO score remains subdued at 44.0, with a Mojo Grade of Sell, downgraded from Hold on 16 Jan 2026. The downgrade reflects concerns over valuation and near-term earnings prospects within the heavy electrical equipment sector, which faces cyclical headwinds and competitive pressures.

ABB’s market capitalisation stands at a substantial ₹1,07,035 crore, categorising it as a large-cap stock. However, its Market Cap Grade is rated 1, indicating limited upside potential relative to peers. Investors should weigh the technical strength and positive momentum against these fundamental reservations.

Technically, the stock’s sustained trading above all major moving averages and rising delivery volumes suggest strong investor conviction. The electric equipment sector itself has gained 4.22% recently, providing a supportive backdrop for ABB’s rally.

Expiry Patterns and Investor Sentiment

The 24 Feb 2026 expiry has attracted the bulk of call option interest, with the two most active strikes clustered around the current market price and a key resistance level. This pattern indicates that traders are positioning for a potential breakout beyond ₹6,000 in the near term, which would represent a significant 8.8% premium over the current price.

Open interest accumulation at these strikes suggests that investors are not merely speculating but may be hedging existing long positions or setting up bullish spreads. The high turnover in these calls also points to active rollovers and adjustments as expiry approaches.

Such concentrated activity often precedes volatility spikes, and market participants should monitor price action closely for confirmation of sustained upward momentum or potential profit-taking.

Implications for Investors and Traders

For investors, ABB India Ltd’s recent price strength and heavy call option activity present a nuanced picture. While technical indicators and derivatives positioning suggest bullish sentiment, the fundamental downgrade and modest Mojo Score counsel caution. Investors should consider their risk tolerance and investment horizon carefully before increasing exposure.

Traders focusing on options may find opportunities in the near-term expiry calls, particularly at the ₹5,500 and ₹6,000 strikes, to capitalise on expected volatility and directional moves. However, given the stock’s wide intraday range and elevated turnover, prudent risk management is essential.

Sectoral tailwinds in electric equipment and rising investor participation provide a constructive environment, but macroeconomic factors and sector-specific challenges remain relevant.

Overall, ABB India Ltd remains a key stock to watch in the heavy electrical equipment space, with its derivatives market activity offering valuable insights into market expectations and sentiment.

Summary

ABB India Ltd’s stock has demonstrated strong bullish momentum, outperforming its sector and the broader market over recent sessions. The surge in call option volumes and open interest at strikes near and above the current price underscores investor optimism for further gains. Despite a fundamental downgrade and a cautious Mojo Grade, technical indicators and rising delivery volumes support the positive trend. Market participants should monitor expiry dynamics closely as the 24 Feb 2026 options expiry approaches, balancing the potential for upside with inherent risks.

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