Robust Call Option Activity Signals Bullish Positioning
The most active call option for Bharat Electronics Ltd is the February 24 expiry contract with a strike price of ₹450. This particular contract saw 4,562 contracts traded, generating a turnover of approximately ₹99.27 crores. Open interest stands at 8,412 contracts, indicating sustained interest and potential for further price movement in the near term.
Given the underlying stock price of ₹445.5, the ₹450 strike is positioned just slightly out-of-the-money, suggesting that traders are anticipating a modest upside in the coming weeks. The high volume and open interest in this call option reflect a consensus among investors expecting the stock to breach this level before expiry.
Stock Performance and Technical Strength
Bharat Electronics Ltd is currently trading just 2.65% below its 52-week high of ₹457.5, underscoring its strong price momentum. The stock closed with a modest gain of 0.17% on 29 January 2026, aligning closely with sector performance, which saw a 0.56% increase. Notably, the Sensex declined by 0.48% on the same day, highlighting BEL’s relative resilience amid broader market weakness.
Technical indicators further bolster the bullish case. BEL is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained uptrend. Rising investor participation is evident from the delivery volume of 1.93 crore shares on 29 January, which surged 36.57% compared to the five-day average delivery volume. This heightened activity suggests growing conviction among long-term investors.
Market Capitalisation and Quality Metrics
With a market capitalisation of ₹3,24,920 crores, Bharat Electronics Ltd is classified as a large-cap stock, offering liquidity and stability to investors. The company holds a strong Mojo Score of 78.0, reflecting favourable fundamentals and technicals. Recently upgraded from a Hold to a Buy rating on 17 November 2025, BEL’s Mojo Grade improvement signals enhanced confidence in its growth prospects and valuation.
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Expiry Patterns and Investor Sentiment
The February 24, 2026 expiry is attracting significant attention, with the ₹450 strike price emerging as a focal point for bullish bets. The concentration of open interest at this strike suggests that investors are positioning for a breakout above this level, potentially driven by expectations of positive developments in the aerospace and defence sector or company-specific catalysts.
Such positioning is consistent with the broader sectoral momentum, where aerospace and defence stocks have been buoyed by government spending and strategic initiatives. BEL’s strong fundamentals and market leadership make it a preferred choice for investors seeking exposure to this theme.
Liquidity and Trading Viability
Bharat Electronics Ltd exhibits robust liquidity, with the stock’s traded value comfortably supporting trade sizes up to ₹30.28 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional and retail investors can execute sizeable trades without significant market impact, further encouraging active participation in both the cash and derivatives segments.
Comparative Sector and Market Context
While BEL’s one-day return of 0.17% is modest, it outperforms the Sensex’s decline of 0.48% on 29 January 2026, underscoring its defensive qualities amid market volatility. The Aerospace & Defence sector’s 0.56% gain on the same day reflects sectoral strength, with BEL positioned well within this positive trend.
Investors should note that the stock’s recent upgrade from Hold to Buy by MarketsMOJO, accompanied by a Mojo Score of 78.0, indicates improved quality and growth prospects relative to peers. The Market Cap Grade of 1 further confirms BEL’s status as a large-cap stalwart with solid fundamentals.
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Investor Takeaway and Outlook
The surge in call option activity at the ₹450 strike price ahead of the February expiry highlights a clear bullish bias among market participants. Coupled with BEL’s proximity to its 52-week high and strong technical positioning, the stock appears poised for potential upside in the near term.
However, investors should remain mindful of broader market conditions and sector-specific risks, including geopolitical developments and defence budget allocations, which could influence price action. The stock’s liquidity and large-cap status provide a degree of stability, making it an attractive option for both short-term traders and long-term investors.
Overall, Bharat Electronics Ltd’s upgraded rating and robust option market activity suggest growing confidence in its growth trajectory, supported by solid fundamentals and favourable sector dynamics.
Summary of Key Metrics:
- Underlying stock price: ₹445.5
- Most active call option strike: ₹450 (24 Feb 2026 expiry)
- Contracts traded: 4,562
- Turnover: ₹99.27 crores
- Open interest: 8,412 contracts
- Mojo Score: 78.0 (Buy, upgraded from Hold on 17 Nov 2025)
- Market cap: ₹3,24,920 crores (Large Cap)
- Distance from 52-week high: 2.65%
- Delivery volume on 29 Jan: 1.93 crore shares (+36.57% vs 5-day avg)
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