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

Robust Call Option Activity Highlights Investor Optimism

The electronics and appliances sector player witnessed a remarkable surge in call option volumes, with 10,267 contracts traded on 9 February 2026 for the 24 February expiry series. This activity generated a turnover of approximately ₹1336.7 lakhs, underscoring significant speculative interest. Open interest stands at 5,539 contracts, indicating sustained positions rather than short-term trading.

The strike price of ₹12,000 is notably above the current underlying value of ₹11,744, suggesting that traders are positioning for a meaningful price appreciation in the coming weeks. This bullish sentiment is further supported by the stock’s recent price action, which has seen a 3.17% gain over the last two trading sessions.

Price and Volume Dynamics in Context

Dixon Technologies’ stock price touched an intraday high of ₹11,780 on 9 February, marking a 2.42% increase on the day and outperforming the Sensex’s 0.59% gain. The stock’s performance aligns closely with the Consumer Durables - Electronics sector, which advanced by 2.35% during the same period.

Technical indicators reveal a mixed picture: the stock is trading above its 5-day and 20-day moving averages but remains below its 50-day, 100-day, and 200-day averages. This suggests short-term momentum is positive, yet longer-term trends require cautious monitoring.

However, investor participation appears to be waning, with delivery volumes on 6 February falling by nearly 80% compared to the five-day average. Despite this, liquidity remains adequate, with the stock’s traded value supporting sizeable transactions up to ₹25.98 crores, making it accessible for institutional and retail traders alike.

Mojo Score Downgrade Reflects Caution Despite Positive Momentum

On 3 November 2025, Dixon Technologies’ mojo grade was downgraded from Buy to Hold, with a current mojo score of 51.0. The downgrade reflects a more cautious outlook amid evolving market conditions and valuation concerns. The company’s market capitalisation stands at ₹70,530 crores, placing it firmly in the mid-cap category with a market cap grade of 2.

While the downgrade signals tempered enthusiasm from analysts, the stock’s recent price gains and active call option interest suggest that traders remain optimistic about near-term catalysts. This divergence between fundamental ratings and market positioning is not uncommon in volatile sectors such as electronics and appliances.

Expiry Patterns and Strike Price Significance

The 24 February 2026 expiry has attracted the bulk of call option activity, with the ₹12,000 strike price emerging as the focal point. This strike is approximately 2.1% above the current spot price, indicating that investors are betting on a moderate rally within the next two weeks.

Open interest data reveals that positions are being held rather than closed, which may imply confidence in the stock’s ability to breach this level. The high turnover and contract volume at this strike price also suggest that market makers and institutional players are actively hedging or speculating on upward moves.

Sectoral and Market Comparisons

Within the Consumer Durables - Electronics sector, Dixon Technologies’ performance is in line with peers, which have collectively gained 2.35% on the day. The stock’s 1-day return of 1.99% slightly trails the sector but comfortably outpaces the broader Sensex’s 0.59% rise, highlighting relative strength.

Given the sector’s cyclical nature and sensitivity to consumer demand, the current bullish positioning in options may reflect expectations of robust earnings or positive macroeconomic developments. However, the subdued delivery volumes caution that long-term conviction among investors may be limited at present.

Implications for Investors and Traders

The surge in call option activity at the ₹12,000 strike price ahead of the 24 February expiry suggests that traders are positioning for a near-term rally in Dixon Technologies. This could be driven by expectations of strong quarterly results, favourable sectoral trends, or broader market momentum.

Investors should weigh this bullish sentiment against the recent mojo grade downgrade and the stock’s technical setup, which shows resistance at longer-term moving averages. The decline in delivery volumes also signals a potential lack of sustained buying interest from long-term holders.

For traders, the liquidity and active options market provide opportunities to capitalise on volatility and directional bets. However, the moderate premium paid for call options and the strike price’s proximity to the current market price suggest a balanced risk-reward scenario rather than an aggressive breakout expectation.

Outlook and Conclusion

Dixon Technologies remains a key stock to watch within the electronics and appliances sector, with its active call option market reflecting a cautiously optimistic investor base. While fundamental ratings have moderated, the technical momentum and sectoral tailwinds support the possibility of further gains in the short term.

Market participants should monitor upcoming earnings announcements, sector developments, and broader market trends to gauge whether the current bullish positioning will translate into sustained price appreciation or if profit-taking and volatility lie ahead.

Summary

In summary, Dixon Technologies’ call option market activity highlights a significant bullish tilt among traders, centred on the ₹12,000 strike price expiring on 24 February 2026. Despite a mojo grade downgrade to Hold, the stock’s recent gains and sectoral alignment underpin positive near-term prospects. Investors and traders alike should remain vigilant to evolving market signals and balance optimism with prudent risk management.

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