Robust Call Option Activity Highlights Investor Confidence
The most active call options for BHEL are concentrated at the ₹315 strike price, with 10,902 contracts traded, generating a turnover of approximately ₹1608.3 lakhs. Open interest stands at 1,461 contracts, indicating sustained interest in bullish positioning as the expiry date approaches. This heightened activity suggests that market participants are anticipating further upward movement in the stock price beyond the current underlying value of ₹303.35.
Price Performance and Technical Indicators Support Positive Outlook
On 7 January 2026, BHEL touched an intraday high of ₹305.9, marking a fresh 52-week peak. The stock outperformed its sector by 1.36% and delivered a 2.10% gain on the day, contrasting with the Sensex’s marginal decline of 0.13%. Notably, BHEL is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, underscoring a strong technical momentum that aligns with the bullish options activity.
Market Capitalisation and Quality Metrics
BHEL is classified as a mid-cap company with a market capitalisation of ₹1,03,661 crores. The company’s Mojo Score has improved to 67.0, earning a Hold grade as of 15 September 2025, upgraded from a previous Sell rating. Despite a moderate Market Cap Grade of 2, the recent upgrade reflects better fundamentals and trend assessments, which may be contributing to the increased investor interest in call options.
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Liquidity and Investor Participation Trends
Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting a trade size of ₹6.11 crores based on 2% of the 5-day average. However, delivery volume on 6 January 2026 fell by 17.82% to 29.92 lakhs shares compared to the 5-day average, indicating a slight dip in investor participation despite the bullish price action. This divergence may reflect short-term profit booking or cautious positioning ahead of the expiry.
Expiry Patterns and Strike Price Significance
The concentration of call option contracts at the ₹315 strike price, which is approximately 3.8% above the current underlying price, suggests that traders are positioning for a moderate upside in the near term. The expiry on 27 January 2026 is likely to be a key event, with open interest levels signalling that many investors expect the stock to breach this level. Such positioning often precedes volatility, as traders adjust their holdings in response to market developments and earnings expectations.
Sectoral Context and Comparative Performance
Within the Heavy Electrical Equipment sector, BHEL’s 2.07% one-day return notably outpaced the sector’s 0.92% gain, reinforcing its relative strength. This outperformance, coupled with the upgraded Mojo Grade from Sell to Hold, indicates improving operational and financial metrics. Investors should monitor how BHEL’s performance compares with peers, especially as the sector navigates challenges related to infrastructure spending and government policies.
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Outlook and Investor Considerations
While the bullish call option activity and technical indicators suggest positive momentum for BHEL, investors should remain cautious given the recent decline in delivery volumes and the stock’s proximity to key resistance levels. The upgraded Mojo Grade to Hold reflects a balanced view, acknowledging improved fundamentals but also recognising potential headwinds in the heavy electrical equipment sector.
Investors with a bullish outlook may consider the ₹315 strike call options as a strategic way to leverage potential upside, while those more risk-averse might await confirmation of sustained price movement above this level. Monitoring open interest changes and expiry dynamics will be crucial in the coming weeks to gauge market sentiment and positioning.
Summary
Bharat Heavy Electricals Ltd. is currently attracting significant call option interest, particularly at the ₹315 strike price expiring on 27 January 2026. The stock’s recent new 52-week high, outperformance relative to sector and benchmark indices, and positive technical signals underpin this bullish positioning. However, a dip in delivery volumes and the Hold rating suggest a measured approach is prudent. Investors should weigh these factors carefully when considering exposure to BHEL in the near term.
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