Robust Call Option Activity Highlights Bullish Positioning
On 13 Feb 2026, Bharat Forge emerged as the most active stock in call options trading, with the 24 February 2026 expiry call options at the Rs.1800 strike price seeing the highest volume. A total of 6,496 contracts were traded, generating a turnover of approximately Rs.1004.93 lakhs. The open interest for these contracts stands at 1,387, indicating strong ongoing interest and potential for further price movement in the underlying stock.
The underlying stock price at the time was Rs.1738.7, just shy of the Rs.1800 strike price, suggesting that traders are positioning for a near-term upside breakout. This level also aligns closely with the recent intraday high of Rs.1784.2, which marks a fresh 52-week peak for Bharat Forge.
Price Momentum and Technical Strength
Bharat Forge has been on a consistent upward trajectory, gaining 12.51% over the last five trading sessions. The stock’s performance today was in line with its sector, registering a modest 0.45% gain compared to the sector’s 0.44%, while the broader Sensex declined by 0.98%. This relative strength underscores the stock’s resilience amid broader market volatility.
Technically, Bharat Forge is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong bullish trend. The rising moving averages provide a solid support base, reinforcing investor confidence in the stock’s near-term prospects.
Increasing Investor Participation and Liquidity
Investor participation has notably increased, with delivery volumes on 12 February reaching 15.1 lakh shares, a 45.37% rise compared to the five-day average delivery volume. This surge in delivery volume indicates genuine buying interest rather than speculative trading, which often bodes well for sustained price appreciation.
Liquidity remains ample, with the stock’s average traded value supporting trade sizes up to Rs.8.22 crore based on 2% of the five-day average traded value. This liquidity ensures that institutional and retail investors can transact sizeable volumes without significant price impact.
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Fundamental and Market Context
Bharat Forge Ltd. operates in the Auto Components & Equipments industry, a sector that has been benefiting from the ongoing recovery in automotive demand and increased focus on electric vehicle components. The company’s market capitalisation stands at Rs.82,831 crore, categorising it as a mid-cap stock with substantial institutional interest.
MarketsMOJO assigns Bharat Forge a Mojo Score of 75.0, reflecting a strong Buy rating, upgraded from Hold on 28 January 2026. This upgrade was driven by improved earnings visibility, robust order book growth, and favourable sectoral tailwinds. The company’s Market Cap Grade is 2, indicating a solid mid-cap standing with good liquidity and market presence.
Options Expiry and Strike Price Significance
The concentration of call option activity at the Rs.1800 strike price with expiry on 24 February 2026 suggests that traders are anticipating a breakout above the current levels within the next two weeks. The open interest of 1,387 contracts at this strike price is significant, as it represents a sizeable pool of investors betting on the stock’s appreciation beyond Rs.1800.
Such positioning often leads to increased volatility as expiry approaches, with market makers and traders adjusting their hedges. Investors should monitor the stock’s ability to sustain above the Rs.1780–1800 range, which will be critical for confirming the bullish momentum.
Comparative Sector and Market Performance
While Bharat Forge has gained 0.45% today, the Auto Components & Equipments sector has moved up by 0.44%, indicating the stock’s performance is closely tracking sector trends. However, the broader Sensex’s decline of 0.98% highlights the stock’s relative strength amid a cautious market environment.
This outperformance is further supported by the stock’s consistent gains over the past five days, which have cumulatively delivered over 12% returns. Such momentum is often a precursor to sustained rallies, especially when backed by strong fundamentals and positive technical indicators.
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Investor Takeaway and Outlook
Given the strong call option activity, rising delivery volumes, and technical strength, Bharat Forge Ltd. appears well-positioned for further upside in the near term. The stock’s recent upgrade to a Buy rating by MarketsMOJO reinforces this positive outlook, supported by solid fundamentals and sector tailwinds.
Investors should watch the Rs.1800 strike price closely as a key resistance level. A sustained move above this mark, especially with continued open interest build-up, could trigger accelerated gains. However, as with all options-driven momentum, volatility may increase as expiry approaches, necessitating careful risk management.
Overall, Bharat Forge’s combination of strong price action, improving fundamentals, and active options market interest makes it a compelling mid-cap stock to monitor for bullish opportunities in the Auto Components & Equipments sector.
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