Call Option Activity Highlights
On 4 February 2026, Bajaj Finance Ltd (BAJFINANCE) emerged as the most active stock in call options trading, with 5,970 contracts exchanged at the ₹1,000 strike price for the expiry dated 24 February 2026. This volume translated into a turnover of ₹386.856 lakhs, underscoring significant investor interest in leveraged bullish bets. Open interest stood at 3,091 contracts, indicating sustained positions held by traders anticipating upward price movement.
The underlying stock price at the time was ₹954.5, suggesting that market participants are positioning for a rise above the ₹1,000 level within the next three weeks. This strike price is approximately 4.8% above the current market value, signalling moderate optimism among option traders.
Price Performance and Technical Context
Despite the bullish options activity, Bajaj Finance’s stock price has shown mixed signals. The stock underperformed its sector by 1.2% on the day, closing with a 1.00% decline, while the NBFC sector gained 0.45% and the Sensex rose 0.23%. Intraday, the stock touched a low of ₹944.15, down 2.1%, reflecting some selling pressure.
Technically, the stock is trading above its 5-day and 20-day moving averages but remains below its 50-day, 100-day, and 200-day moving averages. This pattern suggests short-term strength amid longer-term resistance, a scenario often seen before a potential breakout or further consolidation.
Investor participation has notably increased, with delivery volume on 3 February reaching 96.58 lakhs, an 85.33% rise compared to the five-day average. This heightened activity indicates growing interest from long-term investors, which could support price stability or recovery.
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Fundamental and Market Positioning
Bajaj Finance Ltd is classified as a Large Cap company with a market capitalisation of ₹5,94,091.46 crores, operating within the NBFC sector. The company’s Mojo Score currently stands at 65.0, with a Mojo Grade of Hold, reflecting a recent downgrade from Buy on 1 February 2026. This adjustment indicates a cautious stance by analysts, likely influenced by recent price volatility and sector dynamics.
The Market Cap Grade is rated 1, signalling the company’s significant size and influence in the market. Despite the Hold rating, the stock’s liquidity remains robust, with a trade size capacity of ₹18.3 crores based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.
Investor Sentiment and Expiry Patterns
The concentration of call option contracts at the ₹1,000 strike price expiring on 24 February 2026 suggests that traders are targeting a near-term price recovery. The open interest of 3,091 contracts supports the view that these positions are not merely speculative but represent genuine expectations of upward movement.
Such expiry patterns often coincide with quarterly results or macroeconomic events that could influence NBFC stocks. Investors should monitor upcoming corporate announcements and sectoral developments closely, as these could act as catalysts for the stock’s direction.
Risks and Considerations
While the call option activity points to bullish sentiment, the recent downgrade to Hold and the stock’s underperformance relative to its sector warrant caution. The stock’s failure to surpass longer-term moving averages may indicate resistance levels that could limit upside in the short term.
Moreover, the NBFC sector is sensitive to interest rate changes and regulatory policies, factors that could impact Bajaj Finance’s credit growth and asset quality. Investors should weigh these risks against the potential rewards implied by the options market.
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Outlook and Strategic Implications
Given the current market dynamics, Bajaj Finance Ltd presents a nuanced investment case. The surge in call option activity reflects optimism among traders, possibly anticipating a rebound driven by improving fundamentals or sector tailwinds. However, the Hold rating and recent price weakness suggest that investors should remain vigilant and consider risk management strategies.
For those with a bullish outlook, the ₹1,000 strike call options offer a leveraged way to participate in potential upside, albeit with expiry risk. Conversely, more conservative investors might prefer to wait for confirmation of a sustained uptrend above key moving averages before increasing exposure.
Overall, Bajaj Finance remains a key stock to watch within the NBFC space, with its large market cap and liquidity making it a focal point for both institutional and retail market participants.
Summary
Bajaj Finance Ltd’s recent call option activity highlights a growing bullish sentiment despite short-term price challenges. The stock’s technical setup, combined with increased investor participation and significant open interest in near-term call options, suggests potential for a price recovery. However, the Hold rating and sector risks advise a measured approach. Investors should closely monitor upcoming market developments and expiry outcomes to gauge the stock’s next directional move.
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