Robust Call Option Activity Highlights Investor Optimism
The most active call options for Bajaj Auto Ltd. are concentrated around the 30 March 2026 expiry, with the strike price set at Rs. 10,000. On this expiry date, a substantial 7,609 contracts were traded, generating a turnover of approximately Rs. 1562.79 lakhs. Open interest stands at 1,030 contracts, reflecting sustained investor interest and potential for further price movement.
This heightened activity in call options suggests that market participants are positioning themselves for an upward move in the underlying stock price. The current underlying value of Bajaj Auto is Rs. 10,100, which is slightly above the Rs. 10,000 strike price, indicating that traders are betting on continued gains beyond this level.
Price and Technical Trends Support Bullish Outlook
Bajaj Auto’s recent price action reinforces the bullish narrative. The stock touched an intraday high of Rs. 10,127, marking a 3.03% gain on the day, which is in line with the Automobile Two & Three Wheelers sector’s performance. Notably, Bajaj Auto is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, a technical signal that often precedes sustained upward momentum.
Comparatively, the stock’s 1-day return of 2.83% closely mirrors the sector’s 2.87% gain and outpaces the Sensex’s 0.64% rise, underscoring its relative strength within the broader market. This performance is further supported by a large market capitalisation of Rs. 2,77,066 crores, categorising Bajaj Auto as a large-cap stock with significant liquidity and institutional interest.
Investor Participation and Liquidity Considerations
Despite the positive price movement, investor participation has shown some moderation. Delivery volume on 24 February stood at 1.1 lakh shares, representing a 10.24% decline compared to the 5-day average delivery volume. This dip in delivery volume may indicate some profit-booking or cautious positioning ahead of the March expiry.
Nevertheless, liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes up to Rs. 5.45 crores based on 2% of the 5-day average traded value. This liquidity ensures that both retail and institutional investors can execute sizeable trades without significant market impact.
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Mojo Score Upgrade Reflects Improved Fundamentals
MarketsMOJO has upgraded Bajaj Auto Ltd.’s Mojo Grade from Hold to Buy as of 16 February 2026, reflecting an improved Mojo Score of 74.0. This upgrade is indicative of enhanced financial metrics, favourable trend assessments, and a positive outlook on the company’s growth prospects within the automobile sector.
The company’s Market Cap Grade remains at 1, denoting its status as a large-cap stock with strong market presence and investor confidence. This rating upgrade aligns with the observed bullish positioning in the options market and the stock’s technical strength.
Expiry Patterns and Strike Price Concentration
The concentration of call option activity at the Rs. 10,000 strike price for the 30 March 2026 expiry is particularly noteworthy. This strike price is close to the current underlying price, suggesting that traders expect the stock to maintain or exceed this level over the next month. The sizeable open interest at this strike also implies that many investors are holding positions that could benefit from a sustained rally.
Such expiry patterns often precede volatility as traders adjust their positions approaching the expiry date. Investors should monitor open interest changes and price movements closely to gauge the strength of the underlying trend.
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Sector Context and Comparative Performance
Within the Automobile Two & Three Wheelers sector, Bajaj Auto’s performance is commendable. The sector gained 3.03% on the day, with Bajaj Auto closely tracking this upward momentum. Its ability to outperform the broader Sensex, which rose by only 0.64%, highlights its relative strength and investor preference in the current market environment.
Given the sector’s cyclical nature and sensitivity to economic conditions, Bajaj Auto’s strong fundamentals and technical positioning provide a cushion against volatility. The company’s leadership in the two-wheeler segment and consistent innovation pipeline further bolster its growth prospects.
Investor Takeaway and Outlook
For investors, the surge in call option activity at near-the-money strike prices and the stock’s technical strength signal a positive near-term outlook for Bajaj Auto Ltd. The upgrade to a Buy rating by MarketsMOJO reinforces confidence in the company’s fundamentals and market positioning.
However, the slight decline in delivery volumes suggests some caution among participants, possibly reflecting profit-taking or hedging strategies ahead of the March expiry. Investors should remain vigilant to market developments and consider the broader economic context impacting the automobile sector.
Overall, Bajaj Auto’s blend of strong market capitalisation, liquidity, and bullish options positioning makes it a compelling stock for those seeking exposure to India’s growing automobile industry.
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