Apollo Hospitals Gains 1.75%: 5 Key Factors Driving This Week’s Momentum

5 January 2026: Week Begins with a Slight Decline

Apollo Hospitals opened the week at Rs.7,081.40, down 0.75% from the previous Friday’s close. The stock traded on relatively low volume of 4,289 shares, reflecting a cautious start. The Sensex also declined marginally by 0.18%, closing at 37,730.95. This subdued opening set the tone for a volatile week ahead, with investors awaiting fresh catalysts.

6 January 2026: Intraday High and Surge in Call Option Activity

The stock rebounded strongly on 6 January, surging 3.76% to close at Rs.7,347.85. It hit an intraday high of Rs.7,306.75, marking a 3.18% gain from the previous close. This rally outpaced the hospital sector and the broader market, which saw the Sensex decline 0.19% to 37,657.70. The stock’s price action was supported by trading above its 5-day, 20-day, and 200-day moving averages, signalling short- and long-term strength despite resistance at intermediate levels.

Simultaneously, Apollo Hospitals emerged as the most active stock in call options trading, particularly for the January 27 expiry series. Call options at the ₹7,300 strike price saw nearly 10,000 contracts traded, with open interest at 1,447 contracts. This surge in derivatives activity reflected growing bullish sentiment and anticipation of further price appreciation.

7 January 2026: Continued Call Option Strength and Open Interest Surge

Apollo Hospitals maintained its upward momentum on 7 January, closing at Rs.7,448.45, a 1.37% gain. The stock outperformed its sector by 1.41% and the Sensex, which was nearly flat with a 0.03% gain. The derivatives market activity intensified, with call options at ₹7,400 and ₹7,500 strike prices seeing combined volumes exceeding 9,600 contracts and open interest rising sharply.

Open interest in the derivatives segment surged by 11.79% to 45,326 contracts, accompanied by a trading volume of 84,424 contracts. The futures and options turnover combined reached nearly ₹63,000 crores, highlighting strong liquidity and investor interest. The stock traded above its 5-day, 20-day, 50-day, and 200-day moving averages, though it remained just below the 100-day average, indicating potential resistance ahead.

Delivery volumes also rose significantly, with 2.93 lakh shares delivered on 6 January, a 51.81% increase over the five-day average, signalling genuine investor accumulation rather than speculative trading.

8 January 2026: Profit Booking and Volume Spike

After two days of gains, Apollo Hospitals retreated 1.16% on 8 January to close at Rs.7,362.30. This decline came on heavy volume of 2,69,549 shares, indicating profit booking by some investors. The Sensex also fell sharply by 1.41% to 37,137.33, reflecting broader market weakness. Despite the dip, the stock remained above key short- and long-term moving averages, maintaining a generally positive technical posture.

9 January 2026: Death Cross Formation Signals Caution

The week ended with a 1.40% decline in Apollo Hospitals’ share price to Rs.7,259.55, underperforming the Sensex’s 0.89% drop. More significantly, the stock formed a Death Cross, where the 50-day moving average crossed below the 200-day moving average. This technical pattern often signals a potential shift to a bearish trend and suggests weakening medium- to long-term momentum.

While the stock’s Mojo Score remains a positive 71.0 with a Buy grade upgraded on 1 January 2026, the Death Cross introduces caution for investors. The stock’s P/E ratio of 62.46 slightly exceeds the hospital sector average of 62.03, reflecting premium valuation despite recent technical setbacks. Other momentum indicators such as MACD and KST show mixed but predominantly bearish signals on weekly and monthly charts.

This development highlights a divergence between strong fundamentals and emerging technical caution, suggesting investors should monitor price action closely in the coming weeks.

Key Takeaways

Positive Signals: Apollo Hospitals outperformed the Sensex by 4.37% over the week, supported by strong intraday rallies and robust call option activity. The stock’s trading above multiple moving averages for most of the week indicated underlying technical strength. Rising delivery volumes and sharp increases in open interest reflect genuine investor interest and liquidity.

Cautionary Signals: The formation of the Death Cross on 9 January signals potential medium- to long-term bearish momentum. The stock’s inability to sustain gains above the 100-day moving average and mixed momentum indicators suggest possible consolidation or correction ahead. Valuation remains elevated relative to sector averages, warranting careful monitoring.

Overall, Apollo Hospitals demonstrated resilience in a weak market environment, buoyed by strong derivatives market positioning and positive fundamental upgrades. However, emerging technical caution advises investors to remain vigilant and watch for confirmation of trend direction in the near term.

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