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

Robust Call Option Activity Highlights Investor Optimism

The most active call options for Bajaj Auto Ltd. are concentrated around the 9,800 strike price, with expiry set for 24 February 2026. On this date, a substantial 16,492 contracts were traded, generating a turnover of ₹2,053.5 lakhs. Open interest currently stands at 2,589 contracts, indicating sustained interest and positioning by market participants.

This surge in call option volume and open interest reflects a clear bullish bias, as traders anticipate the stock price to rise above the 9,800 strike by expiry. The underlying stock closed at ₹9,825 on 9 February 2026, just 1.17% shy of its 52-week high of ₹9,941, underscoring the proximity to key resistance levels and the potential for a breakout.

Price Momentum and Technical Strength

Bajaj Auto has outperformed its sector peers, gaining 2.45% on the day and outperforming the automobile sector by 0.91%. The stock has recorded consecutive gains over the past two sessions, delivering a cumulative return of 3.23%. Intraday, it touched a high of ₹9,833.5, marking a 2.54% increase from the previous close.

Technically, Bajaj Auto is trading above all major moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong uptrend. This technical positioning supports the bullish sentiment evident in the options market and suggests that the stock is well poised for further gains.

Liquidity and Market Capitalisation Context

With a market capitalisation of ₹2,70,826 crores, Bajaj Auto is firmly established as a large-cap stock within the automobile sector. The stock’s liquidity remains robust, with a delivery volume of 1.03 lakh shares on 9 February, albeit down 28.47% from the five-day average delivery volume. Despite this dip, the stock’s traded value supports sizeable trade sizes up to ₹5.1 crores, ensuring ease of entry and exit for institutional and retail investors alike.

Mojo Score and Analyst Ratings

Bajaj Auto currently holds a Mojo Score of 67.0, categorised as a 'Hold' grade, reflecting a cautious stance by analysts. This represents a downgrade from a previous 'Buy' rating as of 9 February 2026. The downgrade suggests that while the stock remains fundamentally sound, near-term catalysts may be limited or valuations have become stretched at current levels.

Despite the rating adjustment, the stock’s strong technicals and active call option interest indicate that market participants remain optimistic about its price trajectory. Investors should weigh these factors carefully, considering both the fundamental outlook and market sentiment.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the 9,800 strike price for the 24 February expiry is particularly noteworthy. This strike is slightly below the current underlying price, suggesting that traders are positioning for a moderate upside move within the next two weeks. The open interest of 2,589 contracts at this strike further confirms that this level is a key focal point for market participants.

Such positioning often precedes a breakout or a strong directional move, as traders hedge or speculate on the stock’s momentum. The expiry date also aligns with the company’s upcoming quarterly results season, which could act as a catalyst for price movement.

Sector and Benchmark Comparison

On 9 February, Bajaj Auto’s 1-day return of 2.40% outpaced the automobile sector’s 1.49% gain and the broader Sensex’s 0.37% increase. This relative strength highlights the stock’s leadership within its sector and its appeal to investors seeking exposure to the automobile industry’s growth prospects.

Given the sector’s cyclical nature and sensitivity to economic conditions, Bajaj Auto’s ability to maintain momentum and attract call option interest is a positive sign for its resilience and market positioning.

Investor Takeaway and Outlook

The surge in call option activity at the 9,800 strike price, coupled with the stock’s proximity to its 52-week high and strong technical indicators, suggests that Bajaj Auto is positioned for potential near-term gains. However, the recent downgrade to a 'Hold' rating by analysts signals that investors should remain vigilant and consider valuation risks.

Market participants should monitor open interest trends and expiry dynamics closely, as these can provide early signals of shifts in sentiment or momentum. Additionally, upcoming corporate announcements and sector developments will be critical in shaping the stock’s trajectory.

Overall, Bajaj Auto remains a key stock within the automobile sector, attracting significant attention from options traders and investors alike. Its large-cap status and liquidity profile make it a viable candidate for both strategic and tactical investment approaches.

Conclusion

Bajaj Auto Ltd.’s recent options market activity underscores a bullish tilt among traders, with heavy call option volumes and open interest concentrated near the current trading price. While the fundamental rating has moderated, technical strength and market positioning continue to support a positive outlook. Investors should balance these factors carefully, leveraging detailed analysis and market intelligence to inform their decisions in this dynamic environment.

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