Robust Call Option Activity Highlights Investor Confidence
On 23 January 2026, APL Apollo Tubes Ltd (NSE: APLAPOLLO) emerged as the most active stock in call options trading, with 6,620 contracts exchanged at the ₹2,060 strike price expiring on 27 January 2026. This activity generated a turnover of ₹550.06 lakhs, underscoring heightened speculative interest. The open interest at this strike stands at 900 contracts, indicating sustained positioning by traders anticipating further upside.
The underlying stock price at the time was ₹2,035.6, just shy of the strike price, suggesting that market participants are positioning for a potential breakout above this level in the near term. The concentration of call options at this strike price and expiry date reflects a consensus expectation of continued upward momentum.
Price Performance and Technical Strength
APL Apollo Tubes Ltd has outperformed its sector peers and the broader market in recent sessions. The stock recorded a day’s gain of 3.28%, significantly higher than the Iron & Steel Products sector’s 0.51% and the Sensex’s marginal 0.04% rise on the same day. Over the past two trading days, the stock has delivered an impressive 8.74% return, demonstrating strong buying interest.
Technically, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained uptrend. The intraday high of ₹2,070.6 marks a fresh 52-week peak, reinforcing the bullish technical setup. Additionally, delivery volumes surged to 5.3 lakh shares on 22 January, a 109.11% increase over the five-day average, indicating rising investor participation and conviction.
Market Capitalisation and Quality Assessment
With a market capitalisation of ₹54,762 crore, APL Apollo Tubes Ltd is classified as a mid-cap stock within the Iron & Steel Products industry. The company’s strong fundamentals are reflected in its MarketsMOJO Mojo Score of 88.0, which corresponds to a 'Strong Buy' grade. This rating was upgraded from 'Buy' on 13 October 2025, highlighting improved financial metrics and positive trend assessments.
Despite a moderate Market Cap Grade of 2, the stock’s liquidity remains robust, with the capacity to handle trade sizes of approximately ₹2.42 crore based on 2% of the five-day average traded value. This liquidity ensures that institutional and retail investors can transact sizeable volumes without significant price impact.
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Expiry Patterns and Strike Price Concentration
The expiry on 27 January 2026 has attracted significant open interest in call options at the ₹2,060 strike price, which is slightly above the current market price. This suggests that traders are betting on the stock crossing this resistance level within the week. The relatively high turnover of ₹550.06 lakhs in call options at this strike indicates aggressive positioning, often a precursor to strong directional moves.
Open interest of 900 contracts at this strike is notable given the underlying price proximity, implying that traders expect the stock to either breach or hover near this level by expiry. Such concentration often leads to increased volatility as expiry approaches, providing opportunities for both speculative gains and hedging strategies.
Sectoral Context and Comparative Performance
Within the Iron & Steel Products sector, APL Apollo Tubes Ltd’s recent outperformance is significant. The sector has been relatively subdued, with a one-day return of just 0.51%, while APL Apollo’s 3.28% gain highlights its leadership. This divergence is supported by the company’s strong operational metrics and positive market sentiment, as reflected in its upgraded Mojo Grade and rising investor interest.
Such sectoral outperformance often attracts fresh capital inflows, further bolstering the stock’s price trajectory. The company’s ability to sustain gains above key moving averages adds technical credibility to the bullish case.
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Investor Implications and Outlook
The surge in call option activity at a strike price close to the current market level, combined with strong price momentum and technical indicators, suggests that investors are positioning for further gains in APL Apollo Tubes Ltd. The stock’s recent upgrade to a 'Strong Buy' rating by MarketsMOJO reinforces this positive outlook.
However, investors should remain mindful of the inherent volatility associated with options expiry weeks, especially when open interest is concentrated near the money. While the bullish sentiment is clear, short-term price swings may occur as traders adjust their positions.
Long-term investors may find comfort in the company’s solid fundamentals, sector leadership, and improving quality grades, while traders can capitalise on the heightened liquidity and active options market to implement strategic plays.
Overall, APL Apollo Tubes Ltd stands out as a compelling candidate for bullish exposure within the Iron & Steel Products sector, supported by both fundamental strength and technical momentum.
Summary
APL Apollo Tubes Ltd’s recent market activity highlights a confluence of factors driving investor optimism: a new 52-week high, strong call option volumes at a key strike price, upgraded quality ratings, and sector outperformance. The stock’s liquidity and rising delivery volumes further underpin its attractiveness. As expiry approaches on 27 January 2026, market participants will closely watch price action around the ₹2,060 strike, which could dictate the near-term trend.
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