Bajaj Finance Sees Surge in Call Option Activity Amid Bullish Market Sentiment

Robust Call Option Activity Highlights Investor Confidence

On 6 February 2026, Bajaj Finance Ltd recorded an impressive 12,861 call option contracts traded with a strike price of ₹1,000, expiring on 24 February 2026. This translated into a turnover of ₹1188.36 lakhs, underscoring significant liquidity and investor interest in the stock’s near-term upside potential. The open interest at this strike price stands at 3,297 contracts, indicating sustained positions and a strong commitment from market participants.

The underlying stock price was ₹977.10 at the time, just shy of the ₹1,000 strike, suggesting that traders are positioning for a potential breakout above this psychologically important level within the next three weeks. The call option activity is a clear indicator of bullish sentiment, as investors anticipate further gains in the NBFC giant’s share price.

Price Performance and Technical Context

Bajaj Finance Ltd has outperformed its sector by 1.65% on the day, with a 1.32% gain compared to the sector’s decline of 0.25% and the Sensex’s fall of 0.40%. The stock has been on a positive trajectory for two consecutive days, delivering a cumulative return of 1.53% during this period. Intraday, the stock touched a high of ₹986.50, marking a 2.25% increase from previous levels.

Technically, the stock is trading above its 5-day, 20-day, and 200-day moving averages, signalling short- and long-term strength. However, it remains below the 50-day and 100-day moving averages, which could act as resistance levels in the near term. This mixed technical picture may explain the cautious optimism reflected in the call option volumes, as investors weigh the potential for a breakout against possible consolidation.

Despite the positive price action, investor participation has shown signs of moderation. Delivery volume on 5 February was 41.31 lakh shares, down 45.72% compared to the five-day average delivery volume. This decline suggests that while speculative interest in options is rising, actual stock holding by investors is somewhat subdued, possibly reflecting profit-booking or cautious positioning ahead of upcoming market events.

Fundamental Strength and Market Capitalisation

Bajaj Finance Ltd is a leading player in the Non-Banking Financial Company (NBFC) sector, with a commanding market capitalisation of ₹6,07,065 crore, categorising it as a large-cap stock. The company’s mojo score currently stands at 65.0, reflecting a Hold rating, a downgrade from its previous Buy grade as of 1 February 2026. This adjustment suggests a more cautious stance by analysts, possibly due to valuation concerns or sector headwinds.

Despite the Hold rating, the company maintains a market cap grade of 1, indicating its dominant position in the market. The recent outperformance relative to the NBFC sector and the broader Sensex index highlights Bajaj Finance’s resilience amid a challenging macroeconomic environment.

Options Expiry and Strike Price Significance

The 24 February 2026 expiry date for the most active call options is crucial, as it coincides with the end of the current quarterly earnings cycle and several macroeconomic announcements. The ₹1,000 strike price is particularly significant as it represents a key resistance level just above the current market price. The heavy call option volume at this strike suggests that traders are betting on a breakout, which could be triggered by positive earnings surprises or favourable policy developments.

Open interest data further corroborates this view, with 3,297 contracts outstanding at the ₹1,000 strike, indicating that many investors are holding onto bullish positions rather than closing them out. This sustained interest points to confidence in the stock’s upward momentum over the coming weeks.

Sectoral and Market Context

The NBFC sector has faced mixed fortunes recently, with regulatory changes and interest rate fluctuations impacting earnings visibility. Bajaj Finance’s ability to outperform its peers and the broader market is a testament to its strong business model, diversified loan book, and prudent risk management. The stock’s liquidity is robust, with a trade size capacity of approximately ₹21.43 crore based on 2% of the five-day average traded value, making it attractive for institutional and retail investors alike.

However, the decline in delivery volumes suggests some investors may be taking profits or adopting a wait-and-watch approach, which could temper near-term price gains. The interplay between rising call option activity and falling delivery volumes highlights a nuanced market sentiment, where speculative optimism coexists with cautious stock holding.

Investor Takeaways and Outlook

For investors, the surge in call option activity at the ₹1,000 strike price ahead of the 24 February expiry signals a clear bullish bias. Those considering exposure to Bajaj Finance Ltd should weigh the company’s strong market position and recent price momentum against the Hold mojo grade and technical resistance levels. The stock’s ability to sustain gains above the ₹1,000 mark will be a critical factor in determining its near-term trajectory.

Given the mixed signals from delivery volumes and moving averages, a cautious approach with close monitoring of earnings updates and sector developments is advisable. The liquidity profile supports active trading strategies, while the sizeable open interest in call options offers opportunities for tactical option plays.

Overall, Bajaj Finance Ltd remains a key bellwether in the NBFC sector, with its options market activity providing valuable insights into investor sentiment and potential price movements in the weeks ahead.

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