Bajaj Auto Ltd Sees Surge in Call Option Activity Ahead of Expiry

Robust Call Option Activity Highlights Bullish Sentiment

The most actively traded call options for Bajaj Auto Ltd. are concentrated at the ₹9,300 strike price, set to expire on 30 December 2025. On this expiry date, a total of 2,927 contracts changed hands, generating a turnover of approximately ₹1.21 lakhs. The open interest at this strike stands at 2,762 contracts, underscoring sustained investor interest in this price level.

With the underlying stock currently valued at ₹9,155, the ₹9,300 strike represents a modest premium, suggesting that traders are positioning for a moderate upward move in the near term. This activity is indicative of a bullish stance, as call buyers anticipate the stock price to breach this level by expiry.

Stock Performance and Technical Indicators Support Positive Outlook

Bajaj Auto’s stock price is trading close to its 52-week high, just 4.17% shy of the peak ₹9,490 mark. The stock has recorded a consecutive two-day gain, delivering a cumulative return of 0.51% during this period. Today’s price movement was broadly in line with the automobile sector’s performance, with Bajaj Auto posting a 0.58% gain compared to the sector’s 0.73% rise and the Sensex’s marginal decline of 0.02%.

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. This technical strength is further supported by a significant increase in delivery volume, which surged by 56.18% to 1.89 lakh shares on 29 December compared to the five-day average. Such rising investor participation often precedes meaningful price moves and reflects growing conviction among market participants.

Market Capitalisation and Quality Metrics

Bajaj Auto Ltd. is a large-cap stock with a market capitalisation of ₹2,55,461.02 crores, placing it among the heavyweight constituents of the automobile sector. The company’s Mojo Score currently stands at 58.0, with a Mojo Grade of Hold, upgraded from a previous Sell rating on 22 December 2025. This upgrade reflects an improvement in the company’s fundamentals and market positioning, although the grade suggests cautious optimism rather than outright bullishness.

The stock’s Market Cap Grade is 1, indicating its status as a large-cap entity with stable market presence. Investors should note that while the stock is showing signs of strength, the Hold rating advises measured exposure rather than aggressive accumulation at this stage.

Liquidity and Trading Dynamics

Bajaj Auto’s liquidity profile remains robust, with the stock’s traded value comfortably supporting sizeable trade sizes. Based on 2% of the five-day average traded value, the stock can accommodate trade sizes up to ₹4.28 crores without significant market impact. This liquidity is crucial for options traders and institutional investors seeking to enter or exit positions efficiently.

The rising open interest in call options at the ₹9,300 strike, combined with the stock’s technical strength and improving fundamentals, suggests that market participants are positioning for a potential breakout above recent highs. However, the modest premium on the strike price indicates that expectations are tempered, with investors likely awaiting confirmation of sustained momentum before committing further capital.

Expiry Patterns and Investor Positioning

The 30 December 2025 expiry date is attracting significant attention, with call option volumes concentrated at a strike price that is just above the current market price. This pattern is typical of investors seeking leveraged exposure to anticipated upside while managing risk through defined strike levels.

Open interest data reveals that the ₹9,300 strike is a focal point for both buyers and sellers, with the elevated number of contracts suggesting active hedging and speculative activity. Such dynamics often precede volatility around expiry, as traders adjust positions in response to price movements and time decay.

Balancing Optimism with Caution

While the surge in call option activity and positive technical indicators point to a bullish sentiment, investors should remain mindful of broader market conditions. The Sensex’s slight decline today contrasts with the sector’s gains, highlighting potential volatility in the near term. Additionally, the Hold rating from MarketsMOJO suggests that while Bajaj Auto is improving, it may not yet be poised for a strong rally without further fundamental catalysts.

Investors are advised to monitor upcoming quarterly results, sectoral developments, and macroeconomic factors that could influence automobile demand and supply chains. The current positioning in call options reflects a measured optimism, with market participants hedging their bets around a key resistance level.

Conclusion

Bajaj Auto Ltd. is currently at an intriguing juncture, with heightened call option activity signalling investor interest in a potential price advance beyond ₹9,300 by the end of December 2025. Supported by solid technicals, rising delivery volumes, and an upgraded Mojo Grade, the stock presents a cautiously optimistic case for investors seeking exposure to the automobile sector.

However, the Hold rating and moderate premium on call strikes counsel prudence. Market participants should weigh the positive momentum against sectoral and macroeconomic headwinds before increasing exposure. The coming days will be critical in determining whether Bajaj Auto can sustain its upward trajectory or consolidate near current levels.

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