Bajaj Auto Sees Robust Call Option Activity Amid Steady Market Gains

Call Option Activity Highlights

On 26 November 2025, Bajaj Auto Ltd. recorded notable call option transactions with the most active contracts centred on the 30 December 2025 expiry. The strike price attracting the highest volume was ₹9,200, with 8,467 contracts traded. This activity generated a turnover of approximately ₹1254.43 lakhs, signalling substantial investor engagement in the near-term options market.

Open interest at this strike price stood at 2,133 contracts, suggesting that a considerable number of positions remain open as the expiry date approaches. The underlying stock price was ₹9,145, positioning the ₹9,200 strike slightly out-of-the-money, which often indicates a bullish sentiment among traders anticipating upward price movement.

Price and Volume Trends

Bajaj Auto’s stock price has been on a steady trajectory, gaining 3.04% over the last three trading sessions. This consecutive gain aligns with the automobile sector’s overall performance, where the stock’s 1-day return of 1.25% marginally outpaced the sector’s 1.11% and the Sensex’s 1.18% returns on the same day. Such relative strength underscores investor confidence in Bajaj Auto amid broader market conditions.

Technical indicators reinforce this positive trend, with the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This positioning typically reflects sustained buying interest and a favourable medium to long-term outlook.

Investor participation has also shown signs of expansion. Delivery volume on 25 November reached 2.64 lakh shares, representing a 30.01% increase compared to the five-day average delivery volume. This rise in delivery volume suggests that more investors are holding shares rather than trading intraday, which can be interpreted as a vote of confidence in the stock’s prospects.

Liquidity and Market Capitalisation

Bajaj Auto is classified as a large-cap stock with a market capitalisation of ₹2,53,450 crores, placing it among the heavyweight constituents of the automobile sector. The stock’s liquidity supports sizeable trade volumes, with the capacity to handle trade sizes up to ₹6.6 crore based on 2% of the five-day average traded value. This level of liquidity is crucial for institutional investors and traders engaging in options and futures contracts, ensuring efficient execution without significant price impact.

Investor Sentiment and Expiry Outlook

The concentration of call option activity at the ₹9,200 strike price for the 30 December expiry suggests a market expectation that Bajaj Auto’s share price may approach or surpass this level within the next month. The open interest data corroborates this view, as traders maintain positions that would benefit from upward price movement.

Options market participants often use call options to express bullish views or hedge existing positions. The substantial turnover and open interest at this strike price indicate that market participants are positioning themselves for potential gains, while also managing risk amid ongoing market fluctuations.

Sector Context and Comparative Performance

The automobile sector has demonstrated resilience in recent sessions, with Bajaj Auto’s performance closely mirroring sector trends. The stock’s ability to maintain gains above key moving averages and its relative outperformance against the Sensex highlight its role as a bellwether within the industry.

Given the sector’s cyclical nature, investor focus on derivatives activity provides additional insight into market expectations. The active call option trading in Bajaj Auto may reflect broader optimism about demand recovery, product launches, or favourable regulatory developments impacting the automobile industry.

Conclusion: Market Positioning Ahead of Expiry

Bajaj Auto’s derivatives market activity, combined with its steady price appreciation and rising investor participation, paints a picture of cautious optimism. The concentration of call option contracts at the ₹9,200 strike price for the December expiry suggests that market participants are positioning for potential upside while remaining mindful of prevailing market dynamics.

Investors and traders monitoring Bajaj Auto should consider these factors alongside broader sectoral and macroeconomic indicators to gauge the stock’s near-term trajectory. The liquidity and market capitalisation of Bajaj Auto support active trading, making it a key stock to watch in the automobile space as the expiry date approaches.

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