Robust Call Option Activity Highlights Investor Confidence
On 19 February 2026, Bajaj Auto emerged as one of the most actively traded stocks in the options market, with call options at the ₹10,000 strike price seeing 5,688 contracts exchanged. This translated into a turnover of ₹420.33 lakhs, underscoring substantial investor interest. The open interest for these calls stands at 2,616 contracts, indicating sustained positioning rather than short-term speculative trades.
The underlying stock price hovered near ₹9,978, just shy of the ₹10,000 strike, suggesting that traders are positioning for a potential breakout above this psychologically significant level before expiry. The concentration of activity at this strike price is a classic indicator of bullish sentiment, as investors anticipate the stock to close above this level, thereby profiting from the call options.
Technical Strength Bolsters Positive Outlook
Bajaj Auto’s technical indicators reinforce the optimistic stance. The stock recently hit a new 52-week high of ₹10,059.5, marking a fresh peak in its price trajectory. Despite a minor pullback after two consecutive days of gains, the stock remains firmly above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong uptrend.
Investor participation has also risen notably, with delivery volumes on 18 February reaching 1.73 lakh shares, a 59.23% increase compared to the five-day average. This surge in delivery volume suggests genuine accumulation rather than short-term trading, further validating the bullish narrative.
Market Context and Comparative Performance
In the broader market context, Bajaj Auto’s one-day return of 0.05% was modest but in line with the automobile sector’s 0.23% gain, outperforming the Sensex which declined by 0.13% on the same day. The company’s large-cap status, with a market capitalisation of ₹2,79,064.62 crores, provides it with the liquidity and stability that institutional investors favour.
Its Mojo Score of 74.0 and an upgraded Mojo Grade from Hold to Buy on 16 February 2026 reflect improved fundamentals and positive momentum. The Market Cap Grade of 1 further highlights its standing as a top-tier large-cap stock within the automobile sector.
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Expiry Patterns and Strategic Positioning
The 24 February 2026 expiry date for the active call options is just days away, intensifying the focus on Bajaj Auto’s price action in the short term. The high open interest at the ₹10,000 strike price suggests that many traders are betting on a decisive move above this level before expiry, which could trigger further buying interest in both the stock and its derivatives.
Such expiry-driven activity often leads to increased volatility, but given Bajaj Auto’s strong technical base and improving fundamentals, the risk-reward profile appears favourable for bullish investors. The stock’s liquidity, with an average traded value sufficient to support trade sizes of up to ₹4.4 crores, ensures that large institutional trades can be executed without significant price disruption.
Fundamental Strength Underpins Market Optimism
Bajaj Auto’s recent upgrade from Hold to Buy by MarketsMOJO on 16 February 2026 is supported by a comprehensive analysis of its financial health, operational efficiency, and sectoral positioning. The company’s ability to sustain growth amid a competitive automobile landscape, coupled with its robust market capitalisation, makes it a preferred pick for investors seeking exposure to the sector’s recovery.
Moreover, the stock’s alignment with positive sector trends and its outperformance relative to the Sensex reinforce the conviction behind the bullish call option activity. Investors appear to be capitalising on the stock’s momentum, anticipating further gains in the near term.
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Investor Takeaway: Navigating the Near-Term Upside
For investors and traders, the current environment presents a compelling case to consider bullish strategies on Bajaj Auto. The confluence of strong call option activity, technical strength, and fundamental upgrades suggests that the stock is poised for a potential breakout above the ₹10,000 level in the coming days.
However, as with all derivative trades, it is prudent to monitor market volatility and expiry dynamics closely. The narrow trading range of ₹79 observed recently indicates some consolidation, which could precede a decisive directional move. Investors should also weigh sectoral trends and broader market cues before committing significant capital.
Overall, Bajaj Auto’s large-cap stature, liquidity, and improving mojo score make it an attractive candidate for those seeking exposure to the automobile sector’s growth story in 2026.
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