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 are concentrated around the 24 February 2026 expiry, with the strike price set at ₹10,000. On this expiry date, a substantial 9,716 contracts were traded, generating a turnover of ₹556.65 lakhs. Open interest stands at 3,008 contracts, reflecting sustained investor interest and positioning ahead of the expiry.

This heightened activity in call options suggests that market participants are anticipating further upside in Bajaj Auto’s share price, which currently trades at ₹9,917.50. The strike price of ₹10,000 is just above the current market price, indicating a moderately bullish outlook with expectations of the stock breaching this psychological level in the near term.

Price Performance and Technical Strength

Bajaj Auto has demonstrated strong price momentum, outperforming the automobile sector by 0.89% on the day of analysis. The stock has recorded consecutive gains over the past two sessions, delivering a cumulative return of 2.35%. It is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a sustained uptrend and technical resilience.

Despite this positive price action, investor participation has shown signs of moderation. Delivery volume on 17 February was 65,310 shares, down by 47.74% compared to the five-day average delivery volume. This decline in delivery volume may indicate some cautiousness among long-term holders, even as short-term traders remain active in the options market.

Market Capitalisation and Sector Context

With a market capitalisation of ₹2,76,947 crores, Bajaj Auto is firmly positioned as a large-cap stock within the automobile sector. Its Mojo Score of 74.0 and an upgraded Mojo Grade from Hold to Buy on 16 February 2026 reflect improved fundamentals and positive market sentiment. The stock’s market cap grade is rated 1, indicating strong market presence and liquidity.

In comparison, the Sensex declined by 0.23% on the same day, while the automobile sector posted a modest gain of 0.19%. Bajaj Auto’s outperformance relative to both benchmarks highlights its leadership within the sector and attractiveness to investors seeking exposure to quality large-cap automobile stocks.

Implications of Option Market Activity for Investors

The concentration of call option trades at the ₹10,000 strike price with a sizeable open interest suggests that traders are positioning for a breakout above this level. This is consistent with the stock’s recent technical strength and the positive upgrade in its Mojo Grade. Investors should note that such option activity often precedes significant price moves, as it reflects collective market expectations.

However, the relatively high turnover in call options also implies increased volatility around the expiry date. Traders and investors should be mindful of potential price swings and consider risk management strategies accordingly. The liquidity of Bajaj Auto, with a tradable size of approximately ₹4.33 crores based on 2% of the five-day average traded value, supports active trading without excessive slippage.

Fundamental Outlook and Valuation Considerations

Bajaj Auto’s upgrade to a Buy rating by MarketsMOJO is underpinned by solid fundamentals, including strong revenue growth, improving margins, and a healthy balance sheet. The company’s leadership in the two-wheeler and three-wheeler segments, combined with its focus on electric vehicle development, positions it well for medium to long-term growth.

Valuation metrics remain reasonable relative to peers, with the stock trading at a premium justified by its market leadership and consistent earnings delivery. Investors should weigh the bullish technical signals against broader market conditions and sector dynamics, especially given the cyclical nature of the automobile industry.

Outlook and Strategic Considerations for Investors

Given the current market dynamics and option market positioning, Bajaj Auto appears poised for further gains in the near term. The stock’s ability to sustain above key moving averages and the strong call option interest at the ₹10,000 strike price support a bullish outlook. Investors with a medium-term horizon may consider accumulating the stock, particularly on dips, while monitoring sector trends and broader economic indicators.

Nevertheless, caution is warranted due to the recent decline in delivery volumes, which may signal some profit-booking or reduced conviction among long-term holders. Additionally, macroeconomic factors such as commodity price fluctuations and regulatory changes in the automobile sector could impact performance.

Overall, Bajaj Auto’s upgraded Mojo Grade and strong market cap rating reinforce its status as a quality large-cap stock with favourable risk-reward characteristics. The active call option market activity further highlights investor confidence in the company’s growth prospects.

Summary

Bajaj Auto Ltd. is currently experiencing a notable surge in call option trading, particularly at the ₹10,000 strike price expiring on 24 February 2026. This activity aligns with the stock’s recent technical strength, new 52-week highs, and an upgraded Buy rating from MarketsMOJO. While delivery volumes have moderated, the overall market sentiment remains positive, supported by strong fundamentals and sector leadership. Investors should consider these factors alongside broader market conditions when making investment decisions.

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