Ashok Leyland Sees Surge in Call Option Activity Amid Bullish Momentum

Robust Price Performance and Market Context

On 23 January 2026, Ashok Leyland (NSE: ASHOKLEY) hit a new 52-week high of Rs.199, marking a 4.58% intraday gain. This performance outpaced the Auto - Trucks sector, which itself gained 2.91%, and the broader Sensex index, which was nearly flat with a 0.03% rise. Over the past three consecutive trading sessions, the stock has delivered a cumulative return of 9.52%, reflecting sustained buying interest.

Trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — Ashok Leyland’s technical setup remains firmly bullish. The stock’s market capitalisation stands at a substantial Rs 1,14,305 crores, categorising it as a mid-cap entity with significant institutional and retail participation. Despite a slight dip in delivery volumes by 11.75% compared to the five-day average, liquidity remains adequate to support sizeable trades, with a 2% average traded value threshold allowing for Rs 7.35 crore trade sizes.

Call Option Activity Highlights Bullish Positioning

The most active call option on Ashok Leyland is the January 27 expiry contract with a strike price of Rs 200. This contract saw 10,212 contracts traded, generating a turnover of approximately Rs 6.18 crores (617.826 lakhs). Open interest for this strike stands at 1,346 contracts, indicating strong ongoing interest and potential accumulation by market participants.

With the underlying stock price at Rs 198.06, the Rs 200 strike call options are positioned just out-of-the-money, suggesting traders are betting on a near-term upside breakout. The heavy volume and open interest at this strike price reflect a consensus expectation that Ashok Leyland could breach the Rs 200 level before expiry, signalling confidence in the company’s near-term prospects.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Ashok Leyland a Mojo Score of 65.0, categorising the stock with a Hold grade as of 17 November 2025, a downgrade from a previous Buy rating. The Market Cap Grade is 2, reflecting its mid-cap status and moderate risk profile. While the downgrade suggests some caution, the recent price action and option market activity indicate renewed investor optimism, possibly driven by improving fundamentals or sector tailwinds.

Expiry Patterns and Strategic Strike Price Selection

The January 27 expiry is the nearest monthly expiry, and the concentration of call option activity at the Rs 200 strike price is telling. Traders often use near-the-money strikes to express directional views with limited risk. The sizeable open interest suggests that many investors are either buying calls outright or writing calls as part of spread strategies to capitalise on expected upward price movement.

Given the stock’s recent rally and technical strength, the Rs 200 strike represents a psychologically important resistance level. Breaching this level could trigger further buying, both in the underlying and in derivative markets, potentially leading to a short squeeze or momentum-driven rally.

Sectoral and Broader Market Influences

The automobile sector, particularly the commercial vehicle segment, has been benefiting from improving economic activity, infrastructure spending, and fleet renewal cycles. Ashok Leyland, as a leading truck manufacturer, stands to gain from these macroeconomic tailwinds. The sector’s 2.91% gain on the day reinforces the positive sentiment, although Ashok Leyland’s outperformance by over 1% highlights its relative strength.

Investors should note that while the stock is currently in a bullish phase, the downgrade to Hold by MarketsMOJO signals the need for caution. Factors such as raw material cost inflation, regulatory changes, or global supply chain disruptions could impact near-term performance.

Investor Implications and Outlook

For investors and traders, the current call option activity in Ashok Leyland offers actionable insights. The heavy volume and open interest at the Rs 200 strike price suggest a consensus expectation of a near-term breakout. Those bullish on the stock may consider call options as a leveraged way to participate in potential upside, while cautious investors might monitor open interest changes and price action for signs of reversal.

Given the stock’s trading above all major moving averages and its recent outperformance relative to sector peers, the technical backdrop supports a positive outlook. However, the downgrade to Hold by MarketsMOJO and the mid-cap risk profile warrant prudent position sizing and risk management.

Overall, Ashok Leyland’s blend of strong price momentum, robust call option activity, and sector tailwinds positions it as a key stock to watch in the automobile space as the January expiry approaches.

Summary

Ashok Leyland Ltd. is currently experiencing significant bullish positioning in its call options, particularly at the Rs 200 strike expiring on 27 January 2026. The stock’s recent price gains, new 52-week high, and outperformance of the Auto - Trucks sector underpin this optimism. While the MarketsMOJO rating has been downgraded to Hold, the technical and derivatives market signals suggest potential for further upside. Investors should weigh these factors carefully, considering both the opportunities and risks inherent in mid-cap automobile stocks.

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