Dixon Technologies (India) Sees Robust Call Option Activity Ahead of December Expiry

Call Option Activity Highlights

Data from the options market reveals that Dixon Technologies (India) Ltd has seen substantial volumes in call options expiring on 30 December 2025. The strike prices of ₹13,500 and ₹14,000 have emerged as the most actively traded levels. Specifically, the ₹13,500 strike recorded 4,114 contracts traded, generating a turnover of approximately ₹595.44 lakhs, while the ₹14,000 strike saw 3,543 contracts traded with a turnover of ₹232.26 lakhs. Open interest figures further underscore the concentration of positions, with 5,143 contracts outstanding at ₹13,500 and 7,601 at ₹14,000 strike price.

The underlying value of Dixon Technologies (India) at the time of this data was ₹13,438, situating the most active strikes slightly above the current market price. This positioning suggests that market participants are anticipating potential upward movement in the stock price by the end of December, as they accumulate call options at these near-the-money and out-of-the-money levels.

Stock Performance and Market Context

On the day of analysis, Dixon Technologies (India) recorded a modest gain of 0.30%, marginally underperforming the Electronics & Appliances sector’s 0.34% rise and contrasting with the broader Sensex index, which declined by 0.49%. The stock has been on a short-term upward trajectory, registering gains over the previous day, although the returns over this period were slight at approximately 0.18%.

Technical indicators provide a nuanced picture. The stock’s price currently trades above its 5-day moving average, signalling some short-term strength, yet remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This suggests that while there is some immediate momentum, the longer-term trend has yet to confirm a sustained recovery or breakout.

Investor participation, as measured by delivery volume, has shown a decline. On 12 December, delivery volume stood at 1.89 lakh shares, representing a 14.08% reduction compared to the five-day average. This drop in investor engagement could indicate a cautious stance among shareholders amid mixed technical signals and broader market conditions.

Liquidity metrics affirm that Dixon Technologies (India) remains sufficiently liquid for sizeable trades, with the stock’s traded value comfortably supporting transactions up to ₹19.18 crores based on 2% of the five-day average traded value. This liquidity is a positive factor for traders looking to enter or exit positions without significant market impact.

Implications of Option Market Positioning

The concentration of call option activity at the ₹13,500 and ₹14,000 strike prices indicates a market expectation that Dixon Technologies (India) could test or surpass these levels by the end of December. The open interest data, particularly the higher figure at the ₹14,000 strike, suggests that traders are positioning for a potential rally beyond the current underlying price.

Such positioning often reflects a bullish sentiment, where investors seek leveraged exposure to anticipated price appreciation. However, the presence of significant open interest also implies that these strike prices could become focal points for price action as expiry approaches, potentially influencing volatility and trading volumes in the underlying stock.

Sector and Industry Considerations

Dixon Technologies (India) operates within the Electronics & Appliances sector, a segment that has experienced varied performance amid evolving consumer demand and supply chain dynamics. The stock’s market capitalisation stands at approximately ₹81,213 crores, placing it in the mid-cap category. This size offers a balance between growth potential and market stability, attracting a diverse investor base.

While the stock’s one-day return slightly trails the sector average, the derivatives market activity suggests that some investors are anticipating a turnaround or positive catalyst in the near term. This divergence between spot price movement and options market interest can often signal differing time horizons or risk appetites among market participants.

Outlook and Investor Considerations

Investors analysing Dixon Technologies (India) should weigh the current derivatives market signals alongside the stock’s technical and fundamental indicators. The active call option interest at strikes above the current price points to a segment of the market anticipating upward momentum, yet the broader price trend and reduced delivery volumes counsel a degree of caution.

Given the stock’s liquidity and mid-cap status, it remains accessible for both institutional and retail investors seeking exposure to the Electronics & Appliances sector. Monitoring the evolving open interest and volume patterns in the options market can provide valuable insights into shifting market sentiment as the December expiry date nears.

Overall, the interplay between the underlying stock’s price action and the derivatives market activity will be critical in shaping Dixon Technologies (India)’s near-term trajectory. Investors should remain attentive to sector developments and broader market conditions that could influence the stock’s performance in the coming weeks.

Only for Rs. 14,999 - Get Access to 2 Years + 6 Months of All Premium Features on MarketsMojo. As low as ₹500/month! Claim 83% OFF →