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

Robust Call Option Volumes Highlight Investor Interest

The electronics and appliances firm has emerged as one of the most actively traded stocks in the options market, particularly in call contracts expiring on 24 February 2026. The strike prices of Rs 11,500, Rs 12,000, and Rs 12,500 have attracted significant attention, with total contracts traded amounting to 40,808 across these strikes. The Rs 12,000 strike led the activity with 15,682 contracts traded, followed closely by Rs 11,500 with 14,943 contracts and Rs 12,500 with 10,183 contracts.

This surge in call option activity corresponds with a combined turnover exceeding ₹5,247 lakhs, underscoring the substantial capital flowing into bullish bets on Dixon Technologies. Open interest figures further reinforce this trend, with the Rs 12,000 strike showing the highest open interest at 4,291 contracts, indicating sustained investor commitment at this level.

Underlying Stock Performance Supports Positive Outlook

On the cash market front, Dixon Technologies has outperformed its sector, the Consumer Durables - Electronics segment, by 0.25% on the day, registering a 4.61% gain compared to the sector’s 4.09% and the Sensex’s marginal 0.02% rise. The stock has been on a three-day winning streak, delivering a cumulative return of 12.89% during this period. Intraday, the share price touched a high of Rs 11,550, marking a 4.7% increase from previous levels.

Despite this recent momentum, the stock’s weighted average traded price suggests that most volume was concentrated near the lower end of the day’s price range, hinting at some profit-taking or cautious positioning by traders. The moving averages paint a mixed picture: the stock is trading above its 5-day and 20-day averages but remains below the 50-day, 100-day, and 200-day moving averages, indicating that while short-term momentum is positive, medium- to long-term trends require confirmation.

Investor Participation and Liquidity Trends

Investor engagement has intensified, as evidenced by a delivery volume of 7.93 lakh shares on 3 February 2026, which represents a remarkable 224.5% increase over the five-day average delivery volume. This heightened participation suggests growing conviction among shareholders and traders alike. Liquidity metrics also support active trading, with the stock’s average traded value comfortably accommodating trade sizes up to ₹29.55 crore based on 2% of the five-day average traded value.

Mojo Grade Downgrade Reflects Caution Despite Positive Price Action

While the stock’s price action and options market activity suggest bullishness, MarketsMOJO’s mojo grade for Dixon Technologies was downgraded from Buy to Hold on 3 November 2025. The current mojo score stands at 51.0, reflecting a moderate outlook. The downgrade was influenced by a market cap grade of 2 and a reassessment of the company’s fundamentals and valuation metrics.

This nuanced view indicates that although the stock has momentum and investor interest, caution is warranted given valuation concerns and sector dynamics. The electronics and appliances sector has gained 4.92% recently, but competitive pressures and supply chain factors remain relevant considerations for Dixon Technologies.

Strike Price Analysis and Expiry Patterns

The concentration of call option trades at Rs 11,500, Rs 12,000, and Rs 12,500 strikes, all above the current underlying value of Rs 11,515, suggests that traders are positioning for a potential upside move in the near term. The February 24 expiry date is less than three weeks away, which typically intensifies speculative activity as traders seek to capitalise on short-term price movements.

Open interest data reveals that the Rs 12,000 strike is the most heavily held, indicating that this level may serve as a key resistance or target price for market participants. The Rs 11,500 strike also shows strong open interest, which could act as a support zone if the stock price consolidates. The Rs 12,500 strike, while less active, still commands significant interest, reflecting some traders’ expectations of a more aggressive rally.

Implications for Investors and Traders

For investors, the current scenario presents a mixed picture. The stock’s recent gains and active call option market point to positive sentiment, but the mojo grade downgrade and technical indicators counsel prudence. Traders with a bullish outlook may consider the Rs 12,000 strike as a focal point for potential upside, while monitoring open interest shifts for clues on market direction.

Long-term investors should weigh the company’s fundamentals and sector outlook carefully, especially given the mid-cap status and valuation considerations. The increased delivery volumes and liquidity are encouraging signs of market confidence, but the broader economic environment and sector-specific challenges remain relevant.

Sector Context and Market Positioning

Dixon Technologies operates within the Electronics & Appliances industry, a sector that has demonstrated resilience and growth potential amid evolving consumer demand and technological advancements. The company’s market capitalisation stands at approximately ₹70,031.35 crore, placing it firmly in the mid-cap category.

Its recent outperformance relative to the Consumer Durables - Electronics sector, which itself has gained 4.92%, highlights Dixon’s ability to capture investor interest. However, the stock’s position below longer-term moving averages suggests that sustained upward momentum will require continued positive catalysts, such as strong quarterly results or favourable industry developments.

Outlook and Strategic Considerations

Looking ahead, the options market activity around Dixon Technologies provides valuable insight into investor expectations. The heavy call option volumes at strikes above the current price indicate a consensus leaning towards upside potential in the short term. However, the mojo grade downgrade and mixed technical signals advise a balanced approach.

Investors should monitor upcoming earnings announcements, sector trends, and macroeconomic factors that could influence the stock’s trajectory. The interplay between bullish option positioning and fundamental reassessments will likely shape Dixon’s near-term market performance.

Summary

Dixon Technologies is currently at a crossroads, with strong call option activity signalling bullish sentiment while fundamental and technical indicators suggest caution. The stock’s recent gains and increased investor participation are encouraging, yet the downgrade in mojo grade and valuation concerns temper enthusiasm. Market participants would do well to track open interest trends and sector developments closely as the 24 February expiry approaches.

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