Robust Call Option Volumes Highlight Investor Interest
The heavy electrical equipment company, CG Power & Industrial Solutions Ltd, has emerged as one of the most actively traded stocks in the call options segment. Data from the latest trading session reveals that call options expiring on 27 January 2026 have attracted significant volumes, particularly at strike prices of ₹650 and ₹660.
Specifically, the ₹650 strike call options saw 6,366 contracts traded, generating a turnover of approximately ₹1154.19 lakhs. Open interest at this strike stands at 2,053 contracts, indicating sustained investor interest. Meanwhile, the ₹660 strike calls recorded 4,716 contracts traded with a turnover of ₹674.65 lakhs and an open interest of 1,483 contracts. These figures underscore a strong preference for strike prices slightly above the current underlying value of ₹652.45.
Stock Performance and Technical Context
CG Power’s stock price has demonstrated resilience, gaining 3.27% on the day and outperforming its sector by 2.37%. After three consecutive days of decline, the stock reversed course, touching an intraday high of ₹654, a 2.68% increase from the previous close. Despite this positive momentum, the stock remains below its 20-day, 50-day, 100-day, and 200-day moving averages, though it is trading above the 5-day moving average. This mixed technical picture suggests cautious optimism among traders.
Investor participation, as measured by delivery volume, has declined sharply by 55.26% compared to the five-day average, with 6.1 lakh shares delivered on 7 January. However, liquidity remains adequate, with the stock capable of supporting trade sizes up to ₹2.77 crore based on 2% of the five-day average traded value.
Mojo Score and Rating Revision
MarketsMOJO assigns CG Power a Mojo Score of 55.0, reflecting a Hold rating as of 21 November 2025, a downgrade from its previous Buy status. The company’s market capitalisation stands at a substantial ₹1,00,287 crore, categorising it as a large-cap stock within the heavy electrical equipment sector. The downgrade suggests a tempered outlook, possibly due to valuation concerns or sector headwinds, despite the recent bullish option activity.
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Expiry Patterns and Investor Positioning
The concentration of call option activity around the 27 January 2026 expiry date indicates that investors are positioning for potential upside in the near term. The strike prices of ₹650 and ₹660 are close to the current market price, suggesting a moderately bullish outlook rather than aggressive speculation. The open interest figures reinforce this view, as they reflect ongoing commitments rather than one-off trades.
Such positioning often precedes corporate announcements, sectoral developments, or broader market movements that could catalyse price appreciation. Given the stock’s recent trend reversal and outperformance relative to its sector, traders may be anticipating positive catalysts or a technical breakout.
Sector and Market Context
Within the heavy electrical equipment sector, CG Power’s 1-day return of 2.36% notably outpaces the sector’s modest 0.13% gain and contrasts with the Sensex’s slight decline of 0.17%. This relative strength highlights the stock’s appeal amid a cautious market environment. However, the downgrade to Hold by MarketsMOJO signals that investors should weigh the bullish option activity against broader fundamental and technical considerations.
Investors should also consider the company’s liquidity profile and delivery volumes, which suggest that while trading interest remains robust, actual investor commitment through delivery has waned recently. This divergence can sometimes indicate short-term speculative interest rather than long-term conviction.
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Implications for Investors
The surge in call option volumes at near-the-money strikes and the stock’s recent price recovery suggest that market participants are cautiously optimistic about CG Power’s prospects in the coming weeks. However, the Hold rating and the stock’s position below key moving averages counsel prudence.
Investors considering exposure to CG Power should monitor upcoming corporate developments, sector trends, and broader market conditions. The option market activity may provide early signals of sentiment shifts, but it is essential to balance this with fundamental analysis and risk management strategies.
Given the company’s large-cap status and significant market capitalisation, CG Power remains a key player in the heavy electrical equipment sector. Its performance relative to peers and the broader market will be closely watched by institutional and retail investors alike.
Conclusion
CG Power & Industrial Solutions Ltd’s recent spike in call option trading, particularly for January 2026 expiry contracts at ₹650 and ₹660 strike prices, reflects a growing bullish stance among traders. The stock’s outperformance relative to its sector and the Sensex, combined with a technical rebound, supports this positive sentiment. Nevertheless, the downgrade to Hold by MarketsMOJO and the stock’s technical positioning below longer-term moving averages suggest that investors should approach with measured optimism.
Careful analysis of option market trends alongside fundamental and technical indicators will be crucial for making informed investment decisions in this stock. As the expiry date approaches, the evolving open interest and price action will provide further clarity on market expectations for CG Power’s trajectory.
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