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

Robust Call Option Volumes Highlight Investor Optimism

The most active call options for Dixon Technologies are clustered around strike prices ranging from ₹10,300 to ₹12,000, all expiring on 30 March 2026. The strike price of ₹12,000 leads in terms of contracts traded, with 4,485 contracts exchanged, generating a turnover of approximately ₹199.94 lakhs and an open interest of 6,751 contracts. This elevated open interest at a strike price nearly 17% above the current underlying value of ₹10,250 suggests strong speculative interest in a significant upside move over the next month.

Close behind, the ₹10,400 strike saw 3,668 contracts traded with a turnover of ₹962.70 lakhs and open interest of 1,034 contracts, while the ₹10,600 strike recorded 3,458 contracts traded and turnover of ₹766.57 lakhs. The ₹11,500 strike also attracted substantial activity, with 3,087 contracts traded, ₹249.86 lakhs turnover, and a sizeable open interest of 2,797 contracts. These figures collectively indicate a broad-based bullish sentiment across near-the-money and moderately out-of-the-money strikes.

Underlying Stock Performance and Technical Context

Dixon Technologies is currently trading at ₹10,250, just 4.71% above its 52-week low of ₹9,835. The stock has outperformed its sector by 0.97% today and posted a 1.47% gain, contrasting with the Sensex’s decline of 0.54%. Notably, the stock has reversed an eight-day losing streak, touching an intraday high of ₹10,586, a 4.65% rise from the previous close. Despite this rebound, the share price remains below its key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), indicating that the broader downtrend has yet to be decisively broken.

Investor participation, as measured by delivery volume, has slightly declined by 1.66% compared to the five-day average, with 1.92 lakh shares delivered on 26 February. Liquidity remains adequate, supporting trade sizes up to ₹11.88 crore based on 2% of the five-day average traded value, which is favourable for institutional and retail traders alike.

Mojo Score and Market Capitalisation Insights

Dixon Technologies holds a Market Cap of ₹62,413.14 crore, categorising it as a mid-cap stock within the Electronics & Appliances sector. The company’s Mojo Score currently stands at 51.0, with a Mojo Grade of Hold, reflecting a recent downgrade from Buy on 3 November 2025. This adjustment signals a more cautious stance from analysts, likely influenced by the stock’s recent price weakness and technical challenges.

Despite the Hold rating, the active call option interest suggests that some market participants are positioning for a potential recovery or upside breakout, possibly anticipating positive developments or sector tailwinds in the near term.

Expiry Patterns and Strike Price Distribution

The expiry date of 30 March 2026 is attracting significant attention, with all the most active call options concentrated on this date. The distribution of strike prices shows a clear skew towards out-of-the-money calls, particularly at ₹11,500 and ₹12,000 strikes, which have amassed open interest of 2,797 and 6,751 contracts respectively. This pattern is often indicative of speculative bets on a strong rally or a hedge against short positions.

Meanwhile, near-the-money strikes such as ₹10,300, ₹10,400, and ₹10,600 also exhibit robust trading volumes and open interest, suggesting that traders are actively managing positions across a range of price scenarios. The turnover figures, especially the ₹962.70 lakhs at ₹10,400 and ₹766.57 lakhs at ₹10,600, underscore the liquidity and investor interest in these strikes.

Implications for Investors and Traders

For investors, the mixed signals from the Mojo Grade downgrade and the strong call option activity present a nuanced picture. While the technical indicators and recent price action warrant caution, the options market reveals a segment of traders anticipating a rebound or a bullish breakout. This divergence may reflect differing time horizons or risk appetites among market participants.

Traders focusing on options strategies might consider the elevated open interest at higher strikes as a sign of potential upside momentum, but should remain mindful of the stock’s position below key moving averages and the proximity to its 52-week low. Risk management remains paramount, especially given the stock’s recent volatility and sector dynamics.

Sector Outlook and Broader Market Context

The Electronics & Appliances sector has experienced mixed performance recently, with some stocks showing resilience while others face headwinds from supply chain disruptions and fluctuating consumer demand. Dixon Technologies’ recent outperformance relative to its sector by nearly 1% today is a positive sign, though the stock remains vulnerable to broader market volatility as reflected in the Sensex’s 0.54% decline.

Investors should monitor upcoming quarterly results, sectoral policy developments, and global electronics demand trends to better gauge Dixon’s prospects. The company’s ability to sustain growth and improve profitability will be critical in reversing the current Hold rating and regaining investor confidence.

Conclusion: Balancing Caution with Opportunity

Dixon Technologies is at a pivotal juncture, with its stock price showing tentative signs of recovery after a prolonged downtrend. The surge in call option activity, especially at higher strike prices and the 30 March expiry, highlights a segment of the market positioning for a bullish outcome. However, the recent downgrade to a Hold rating and the stock’s technical challenges counsel prudence.

For investors and traders alike, a balanced approach that considers both the potential upside indicated by options market sentiment and the underlying fundamental and technical factors will be essential. Close monitoring of price action, volume trends, and sector developments will help in making informed decisions in the coming weeks.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today