Bajaj Auto Ltd Sees Surge in Call Option Activity Amid Bullish Market Momentum

Robust Call Option Activity Highlights Investor Confidence

The most active call options for Bajaj Auto Ltd. are concentrated at the Rs. 10,000 strike price with an expiry date of 27 January 2026. On this expiry, a substantial 11,609 contracts were traded, generating a turnover of approximately Rs. 885.13 lakhs. The open interest stands at 2,995 contracts, indicating sustained investor interest and positioning ahead of the expiry. This level of activity suggests that market participants are anticipating a potential upward move in the stock price beyond the Rs. 10,000 mark within the next few weeks.

Stock Performance and Technical Indicators Support Bullish Outlook

Bajaj Auto’s underlying stock price closed at Rs. 9,715 on the day of analysis, having touched an intraday high of Rs. 9,783.5, marking a 3.01% gain for the session. This performance outpaced the automobile sector’s 0.85% gain and the broader Sensex’s marginal decline of 0.14%. The stock’s recent rally follows a two-day consecutive fall, signalling a trend reversal that has caught the attention of traders and investors alike.

Technically, Bajaj Auto is trading above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which is a strong indication of sustained upward momentum. Such alignment of moving averages typically attracts momentum traders and institutional investors, reinforcing the bullish narrative.

Market Capitalisation and Mojo Score Reflect Stability with Room for Upside

With a market capitalisation of Rs. 2,70,611 crores, Bajaj Auto is firmly positioned as a large-cap stock within 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 improving fundamentals and market sentiment, although the grade suggests cautious optimism rather than an outright buy recommendation.

The market cap grade is rated at 1, indicating the stock’s significant size and liquidity, which is further supported by a delivery volume of 1.57 lakh shares on 5 January 2026. However, this delivery volume has declined by 28.44% compared to the five-day average, signalling a slight reduction in investor participation despite the price rally. Liquidity remains adequate for sizeable trades, with the stock able to handle trade sizes up to Rs. 8.4 crores based on 2% of the five-day average traded value.

Expiry Patterns and Strike Price Concentration Indicate Strategic Positioning

The concentration of call option activity at the Rs. 10,000 strike price, which is approximately 2.9% above the current underlying price, suggests that traders are positioning for a moderate but meaningful upside in the near term. The expiry date of 27 January 2026 is just over three weeks away, providing a relatively short timeframe for the anticipated price movement to materialise.

Open interest of 2,995 contracts at this strike price is significant, as it reflects not only fresh buying but also existing positions being held or rolled over. This level of open interest can act as a magnet for the stock price, as market makers and traders adjust their hedges and positions in response to price movements near this strike.

Sectoral and Broader Market Context

Within the automobile sector, Bajaj Auto’s outperformance is notable given the sector’s modest 0.85% gain on the day. The broader market, represented by the Sensex, declined slightly by 0.14%, underscoring the stock’s relative strength. This divergence highlights Bajaj Auto’s resilience amid mixed market conditions and may attract further interest from investors seeking defensive yet growth-oriented automobile stocks.

However, the recent dip in delivery volumes suggests some caution among long-term investors, possibly awaiting confirmation of sustained momentum or quarterly earnings updates. This mixed participation could lead to short-term volatility, especially as the January expiry approaches.

Investor Takeaway and Outlook

For investors and traders, the surge in call option activity at the Rs. 10,000 strike price with the January expiry signals a cautiously optimistic outlook on Bajaj Auto Ltd. The stock’s technical strength, coupled with its recent upgrade from ‘Sell’ to ‘Hold’ by MarketsMOJO, suggests improving fundamentals and market sentiment. However, the Mojo Grade of ‘Hold’ indicates that while the stock is stabilising, it may not yet be poised for a strong buy recommendation.

Market participants should monitor the stock’s price action closely as it approaches the Rs. 10,000 level, as well as the open interest trends in the options market. A sustained move above this strike price could trigger further bullish momentum, while failure to breach this level may lead to consolidation or profit-taking.

Given the stock’s large-cap status and liquidity, Bajaj Auto remains an attractive option for investors seeking exposure to the automobile sector with a blend of growth and stability. Nonetheless, the recent decline in delivery volumes warrants a degree of caution, and investors should consider broader market conditions and sectoral trends before increasing exposure.

Summary

Bajaj Auto Ltd. is currently experiencing heightened call option activity, particularly at the Rs. 10,000 strike price expiring on 27 January 2026, reflecting bullish positioning among traders. The stock’s recent new 52-week high and outperformance relative to its sector and the Sensex underpin this optimism. While the Mojo Grade upgrade to ‘Hold’ signals improving fundamentals, cautious investor participation suggests a watchful approach is prudent. Overall, Bajaj Auto’s blend of technical strength, market cap, and liquidity make it a key stock to watch in the automobile sector as January expiry approaches.

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