Dixon Technologies Sees Surge in Call Option Activity Ahead of February Expiry

Robust Call Option Activity Highlights Investor Optimism

The most active call options for Dixon Technologies are concentrated at the ₹10,500 and ₹11,000 strike prices, both expiring on 24 February 2026. The ₹11,000 strike saw the highest number of contracts traded at 3,505, with turnover reaching ₹390.39 lakhs and open interest surging to 6,621 contracts. Meanwhile, the ₹10,500 strike recorded 3,337 contracts traded, generating a turnover of ₹639.59 lakhs and open interest of 3,206 contracts. These figures underscore a strong bullish positioning, as traders anticipate the stock price to move above these levels within the next three weeks.

Stock Price Context and Technical Indicators

Currently, Dixon Technologies is trading at ₹10,240, approximately 3.74% above its 52-week low of ₹9,835. Despite this proximity to the lower end of its annual range, the stock has marginally outperformed its sector by 0.53% on the day. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day, signalling a cautious technical outlook. The stock’s 1-day return was a slight decline of 0.03%, contrasting with the sector’s robust 2.33% gain and the Sensex’s modest 0.22% rise.

Rising Investor Participation and Liquidity

Investor interest in Dixon Technologies has intensified, as evidenced by a delivery volume of 3.92 lakh shares on 30 January 2026, marking a 119.19% increase over the five-day average delivery volume. This surge in participation suggests growing conviction among market participants. Additionally, the stock’s liquidity remains adequate, with the ability to support trade sizes up to ₹24.5 crore based on 2% of the five-day average traded value, facilitating smoother execution for institutional and retail investors alike.

Mojo Score and Analyst Ratings Reflect Cautious Outlook

Dixon Technologies currently holds a Mojo Score of 51.0, placing it in the ‘Hold’ category, a downgrade from its previous ‘Buy’ rating as of 3 November 2025. The company’s market cap stands at ₹61,856.98 crore, categorising it as a mid-cap stock within the Electronics & Appliances sector. The downgrade reflects tempered expectations amid mixed technical signals and sector dynamics, though the stock’s fundamentals remain solid.

Expiry Patterns and Strike Price Implications

The concentration of call option activity at the ₹10,500 and ₹11,000 strikes, both expiring on 24 February 2026, suggests that traders are betting on a price recovery above these levels within the near term. The open interest at ₹11,000 is particularly significant, indicating a strong interest in upside potential roughly 7.5% above the current market price. This positioning may reflect expectations of positive catalysts or sector tailwinds emerging in the coming weeks.

Sectoral and Market Comparisons

While Dixon Technologies has marginally outperformed its sector on the day, it lags behind the broader market indices in terms of momentum. The Electronics & Appliances sector has been volatile, influenced by supply chain challenges and fluctuating consumer demand. Dixon’s current technical weakness relative to its moving averages suggests that investors are awaiting clearer signals before committing to a sustained rally.

Investor Takeaway: Balancing Bullish Options Activity with Technical Caution

The surge in call option volumes and open interest at strikes above the current price level signals a degree of bullishness among traders, who appear to be positioning for a rebound in Dixon Technologies ahead of the February expiry. However, the stock’s technical indicators and recent downgrade to a ‘Hold’ rating counsel caution. Investors should monitor upcoming earnings, sector developments, and broader market trends closely before increasing exposure.

Given the stock’s proximity to its 52-week low and the elevated delivery volumes, there is evidence of rising investor participation that could underpin a turnaround. Yet, the prevailing downtrend across multiple moving averages suggests that any recovery may be gradual and contingent on positive fundamental triggers.

In summary, Dixon Technologies presents a mixed picture: active call option interest points to optimism, but technical and rating signals advise prudence. Investors with a higher risk appetite may consider leveraging the options market to capitalise on potential upside, while more conservative participants might await clearer confirmation of a trend reversal.

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