Bajaj Auto Sees Robust Call Option Activity as Stock Nears 52-Week High

Call Option Activity Highlights

The most active call options for Bajaj Auto are concentrated at the ₹9,200 strike price, with 2,542 contracts traded recently. This activity generated a turnover of approximately ₹474.68 lakhs, reflecting strong participation from options traders. Open interest at this strike stands at 1,921 contracts, indicating a considerable number of outstanding positions that could influence price movements as expiry approaches.

The underlying stock price is currently ₹9,212.5, placing the ₹9,200 strike call options near the money. This proximity often attracts speculative and hedging activity, as traders position themselves for potential upward moves or protection against downside risk.

Price Performance and Technical Context

Bajaj Auto’s stock price is approximately 2.73% away from its 52-week high of ₹9,490, suggesting the stock is trading near peak levels seen over the past year. Over the last four trading sessions, the stock has recorded a cumulative return of 3.89%, reflecting a steady upward trend. This performance has outpaced the broader automobile sector by 0.47% on the most recent trading day, underscoring relative strength within its industry group.

Technically, Bajaj Auto is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This alignment of short- to long-term averages typically signals a bullish trend and may encourage further buying interest from technical traders and institutional investors alike.

Liquidity and Investor Participation

Liquidity metrics reveal that the stock is sufficiently liquid to support sizeable trades, with a 5-day average traded value allowing for trade sizes up to ₹6.72 crores based on 2% of average daily volume. However, delivery volumes on 26 November showed a decline of 8.96% compared to the 5-day average, indicating a slight reduction in investor participation at the delivery level despite the price gains.

Expiry Patterns and Market Sentiment

The December 30, 2025 expiry date is attracting the bulk of call option activity, which is typical as traders adjust positions ahead of contract settlement. The concentration of open interest at the ₹9,200 strike price suggests that market participants are positioning for the stock to maintain or exceed this level by expiry. This strike price is closely aligned with the current underlying price, indicating a balanced view between moderate bullishness and risk management.

Options traders often use call options near the money to capitalise on expected upward price movements while limiting downside exposure. The volume and open interest data imply that a significant number of investors are adopting such strategies, reflecting a cautiously optimistic outlook on Bajaj Auto’s near-term prospects.

Comparative Sector and Market Performance

On the most recent trading day, Bajaj Auto’s 1-day return was 0.46%, which outperformed the automobile sector’s 0.32% and the Sensex’s 0.11%. This relative outperformance highlights the stock’s resilience amid broader market fluctuations and sector dynamics. As a large-cap company with a market capitalisation of approximately ₹2,57,084.55 crores, Bajaj Auto remains a key player in the automobile industry, attracting both retail and institutional investor interest.

Despite the positive price momentum, the slight decline in delivery volumes suggests that some investors may be adopting a wait-and-watch approach, possibly awaiting further clarity on market direction or company-specific developments.

Investor Implications and Outlook

The current derivatives activity and price behaviour of Bajaj Auto suggest a market environment where investors are positioning for continued strength in the stock. The proximity to the 52-week high and the alignment above multiple moving averages provide technical support for this view. However, the slight dip in delivery volumes indicates some caution among investors, which could temper rapid price advances.

For market participants, monitoring the open interest and volume trends in the call options, especially around the ₹9,200 strike price, will be crucial in gauging the evolving sentiment as the December expiry approaches. Additionally, keeping an eye on sector performance and broader market conditions will help contextualise Bajaj Auto’s price movements within the larger economic landscape.

Overall, the data points to a scenario where Bajaj Auto remains a focal point for options traders and equity investors alike, reflecting a blend of bullish positioning and prudent risk management.

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