Dixon Technologies Sees Surge in Call Option Activity Amid Bullish Market Sentiment

Robust Call Option Activity Highlights Investor Interest

Data from the derivatives market reveals that Dixon Technologies is among the most actively traded stocks in call options, with several strike prices attracting significant volumes. The 24 February 2026 expiry date has seen particularly heavy activity, with the 10,500 strike price leading the pack at 10,014 contracts traded, generating a turnover of ₹2,765.12 lakhs and an open interest of 2,272 contracts. This level of activity indicates strong investor interest in the stock moving above this price point within the next month.

Close behind, the 12,000 strike price recorded 10,943 contracts traded, with a turnover of ₹761.14 lakhs and the highest open interest among the strikes at 4,211 contracts. This suggests a sizeable number of traders are betting on a substantial upside, aiming for the stock to surpass this level by expiry. Other notable strikes include 11,500 with 7,275 contracts and 8,40 open interest, 10,800 with 3,584 contracts, and 10,700 with 4,768 contracts traded, all reflecting a broad-based bullish positioning across a range of near-the-money and out-of-the-money strikes.

Price Action Reflects Volatility and Mixed Sentiment

Despite the bullish options activity, Dixon Technologies’ stock price has shown mixed signals. On 30 January 2026, the stock opened with a gap down of -2.29%, hitting a new 52-week low of ₹9,835 during the session. However, it also touched an intraday high of ₹10,843, representing a 4.9% rally from the low point. The stock traded within a wide range of ₹1,008, indicating significant volatility and investor indecision.

The weighted average price for the day was closer to the lower end of the range, suggesting that while there was buying interest, sellers remained active. The stock has gained 6.13% over the past three consecutive days, outperforming its sector by 1.25%, and closing at ₹10,789, just shy of the 10,800 strike price that saw heavy call option volume.

Technical indicators show the stock trading above its 5-day moving average but still below its 20-day, 50-day, 100-day, and 200-day moving averages. This positioning points to a short-term recovery attempt amid a longer-term downtrend, which may explain the mixed investor sentiment reflected in both the price action and options market.

Mojo Score and Market Capitalisation Context

Dixon Technologies currently holds a Mojo Score of 51.0, placing it in the 'Hold' category after a recent downgrade from 'Buy' on 3 November 2025. This reflects a cautious stance by analysts, who have noted the stock’s recent volatility and mixed technical signals. The company’s market capitalisation stands at ₹62,741 crores, categorising it as a mid-cap stock within the Electronics & Appliances sector.

The sector itself has gained 3.28% recently, with Dixon Technologies outperforming the sector by 1.25% on the day of 30 January 2026. The Sensex, in contrast, declined by 0.48%, highlighting the stock’s relative strength amid broader market weakness. Rising investor participation is evident from a 21.17% increase in delivery volume to 2.22 lakh shares on 29 January, signalling growing conviction among shareholders.

Expiry Patterns and Strike Price Distribution

The concentration of call option contracts around the 10,500 to 12,000 strike prices for the 24 February 2026 expiry suggests that traders are positioning for a meaningful price appreciation over the next month. The open interest figures reinforce this view, with the highest open interest at 4,211 contracts for the 12,000 strike, followed by 2,330 contracts at 11,500 and 2,272 at 10,500.

This distribution indicates a layered bullish strategy, where investors are betting on incremental price gains rather than a single price target. The underlying stock price of ₹10,789 is currently just below the 10,800 strike, which saw substantial trading volume, implying that the market expects the stock to breach this level soon.

Liquidity and Trading Dynamics

Dixon Technologies remains sufficiently liquid for sizeable trades, with a 5-day average traded value supporting trade sizes up to ₹12.86 crores. This liquidity is crucial for options traders who require the ability to enter and exit positions without significant price impact. The stock’s delivery volume and active participation in both cash and derivatives markets underscore its appeal to institutional and retail investors alike.

Implications for Investors and Traders

The surge in call option volumes and open interest at multiple strike prices signals a predominantly bullish outlook among derivatives traders, despite the stock’s recent price weakness and volatility. Investors should note the stock’s current technical positioning, which suggests a short-term recovery attempt within a longer-term downtrend. This mixed technical picture warrants caution, but the options market activity indicates confidence in a potential upside move by late February.

Given the stock’s mid-cap status and recent downgrade to a 'Hold' rating, investors may wish to monitor developments closely, particularly around key resistance levels near the 10,800 to 12,000 range. The rising delivery volumes and relative outperformance versus the sector and Sensex provide some reassurance of underlying strength.

Traders looking to capitalise on the options market activity should consider the liquidity and open interest data carefully to identify optimal entry points and strike prices. The layered call option positioning suggests a strategy that anticipates incremental gains rather than a sharp breakout, which may influence risk management and profit-taking decisions.

Outlook and Market Sentiment

Overall, Dixon Technologies is attracting significant attention in the options market, reflecting a nuanced investor sentiment that balances recent price volatility with expectations of recovery. The stock’s performance in the coming weeks will be closely watched by market participants, especially as the 24 February expiry approaches. Any sustained move above the 10,800 and 11,500 strike prices could validate the bullish positioning and potentially trigger further upside momentum.

Conversely, failure to hold above current support levels may dampen sentiment and lead to a reassessment of the stock’s prospects. Investors should remain vigilant to broader sector trends and macroeconomic factors that could influence the electronics and appliances industry, as well as Dixon Technologies’ individual fundamentals.

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