Apollo Hospitals Sees Surge in Call Option Activity Amid Bullish Market Sentiment

Strong Call Option Trading Highlights Investor Confidence

The most active call options for Apollo Hospitals are concentrated around the 27 January 2026 expiry, with the 7,300 strike price attracting the highest volume. On this expiry date, 9,956 contracts were traded, generating a turnover of ₹1466.39 lakhs. The open interest stands at 1,447 contracts, indicating sustained investor interest and positioning ahead of the expiry.

This level of activity is notable given the underlying stock price of ₹7,302, which is marginally above the strike price, suggesting that traders are positioning for a potential upward move beyond this level in the coming weeks. The high turnover and open interest at this strike price reflect a consensus expectation of continued strength in Apollo Hospitals’ shares.

Price Performance and Technical Context

On 6 January 2026, Apollo Hospitals outperformed its hospital sector peers by 1.53%, closing with a day’s high of ₹7,308.5, a gain of 3.18% intraday. The stock’s 1-day return of 2.96% contrasts favourably with the sector’s 1.62% gain and the Sensex’s marginal decline of 0.14%, highlighting its relative strength.

Technically, the stock is trading above its 5-day, 20-day, and 200-day moving averages, signalling short- and long-term bullish momentum. However, it remains below the 50-day and 100-day moving averages, suggesting some resistance levels to overcome for a sustained uptrend. This mixed technical picture may be contributing to the active call option positioning as investors anticipate a breakout.

Rising Investor Participation and Liquidity Support

Investor participation has notably increased, with delivery volume on 5 January reaching 2.6 lakh shares, a 53.09% rise compared to the 5-day average delivery volume. This surge in delivery volume indicates genuine buying interest rather than speculative trading, reinforcing the bullish narrative.

Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹4.15 crore based on 2% of the 5-day average traded value. This liquidity facilitates active options trading and allows institutional investors to build or unwind positions efficiently.

Fundamental Strength Underpinning Positive Outlook

Apollo Hospitals Enterprise Ltd. is a large-cap hospital sector leader with a market capitalisation of ₹1,04,114 crore. The company’s Mojo Score of 71.0 and upgraded Mojo Grade to ‘Buy’ from ‘Hold’ as of 1 January 2026 reflect improved fundamentals and positive analyst sentiment. This upgrade signals enhanced confidence in the company’s earnings growth, operational efficiency, and sector positioning.

Such fundamental strength often attracts institutional investors who utilise options to leverage their bullish views or hedge existing positions. The combination of strong fundamentals and technical momentum is likely driving the elevated call option activity observed.

Expiry Patterns and Strategic Positioning

The concentration of call option trades at the 7,300 strike price for the 27 January expiry suggests that market participants are targeting a near-term rally. This expiry date is just over three weeks away, indicating that traders expect meaningful price movement within this timeframe.

Open interest at this strike price remains elevated, which may lead to increased volatility as expiry approaches, especially if the stock price hovers near this level. Traders holding these call options stand to benefit if Apollo Hospitals’ shares rise above ₹7,300, while those writing options may hedge against potential losses.

Sector and Market Context

The hospital sector has shown resilience amid broader market fluctuations, supported by steady demand for healthcare services and ongoing investments in infrastructure and technology. Apollo Hospitals, as a sector bellwether, often sets the tone for investor sentiment in this space.

Its outperformance relative to the sector and the Sensex on 6 January 2026 highlights its defensive qualities and growth potential. This relative strength is a key factor behind the bullish positioning in its options market.

Implications for Investors and Traders

For investors, the active call option trading in Apollo Hospitals signals a consensus expectation of price appreciation in the near term. The combination of strong fundamentals, technical momentum, and rising investor participation supports a bullish outlook.

Traders may consider the 7,300 strike price call options as a strategic entry point to capitalise on anticipated upside, while also monitoring open interest and price action closely as the 27 January expiry approaches. The stock’s liquidity and delivery volumes provide a conducive environment for both institutional and retail participants to execute their strategies effectively.

However, investors should remain mindful of potential resistance near the 50-day and 100-day moving averages and the broader market environment, which could influence price volatility and option premiums.

Conclusion

Apollo Hospitals Enterprise Ltd. is currently at the centre of heightened call option activity, reflecting strong bullish sentiment backed by solid fundamentals and technical indicators. The 7,300 strike price for the 27 January 2026 expiry has emerged as a key level, with substantial contracts traded and open interest signalling confidence in a near-term rally.

As the hospital sector continues to demonstrate resilience and growth potential, Apollo Hospitals remains a compelling stock for investors seeking exposure to healthcare. The active options market provides additional avenues for strategic positioning, making it a stock to watch closely in the coming weeks.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today