Dixon Technologies Sees Surge in Call Option Activity Amid Bullish Momentum

Robust Call Option Activity Highlights Investor Optimism

The latest data reveals that Dixon Technologies witnessed significant call option trading volumes, particularly at the ₹11,000 and ₹12,000 strike prices, both expiring on 24 February 2026. The ₹11,000 strike call options recorded the highest number of contracts traded at 10,021, generating a turnover of approximately ₹2,144.29 lakhs. Meanwhile, the ₹12,000 strike calls saw 7,301 contracts exchanged, with a turnover of ₹500.78 lakhs. Open interest figures remain elevated at 4,974 and 5,212 contracts respectively, underscoring sustained investor interest and positioning for potential upside.

The underlying stock price currently stands at ₹11,000, indicating that the ₹11,000 strike calls are at-the-money, while the ₹12,000 strike calls are out-of-the-money but within striking distance if the bullish momentum continues. This concentration of activity near and above the current market price suggests that traders are anticipating a meaningful rally in Dixon Technologies shares over the coming weeks.

Price Performance and Technical Context

Dixon Technologies has demonstrated strong price action recently, outperforming the consumer durables electronics sector by 0.45% on the day. The stock has gained 8.33% over the last two trading sessions, including a notable gap-up opening of 7.36% on the latest trading day. Intraday, the share price touched a high of ₹11,200, representing an 8.33% increase from the previous close.

From a technical standpoint, the stock is trading above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This positioning indicates a short-term bullish trend within a longer-term consolidation phase. The sector itself has gained 7.75%, reflecting broad-based strength in consumer electronics, which may further support Dixon’s upward trajectory.

However, investor participation has shown signs of moderation, with delivery volumes falling by 23.34% compared to the five-day average, suggesting some caution among long-term holders despite the recent rally. Liquidity remains adequate, with the stock capable of handling trade sizes up to ₹25 crore based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.

Mojo Score and Rating Update Reflect Cautious Optimism

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 adjustment reflects a more cautious stance amid mixed technical signals and evolving market conditions. The company’s market capitalisation stands at ₹66,754.32 crore, categorising it as a mid-cap stock within the electronics and appliances sector.

The downgrade was influenced by a combination of factors, including the stock’s inability to decisively break above longer-term moving averages and a slight decline in investor participation. Nonetheless, the strong call option activity and recent price gains indicate that market participants remain hopeful about the company’s near-term prospects.

Expiry Patterns and Strategic Positioning

The 24 February 2026 expiry date is attracting concentrated option interest, with traders positioning themselves ahead of potential catalysts such as quarterly earnings announcements, sectoral developments, or macroeconomic data releases. The high open interest at the ₹11,000 and ₹12,000 strikes suggests that investors are hedging or speculating on a price move that could push the stock beyond these levels within the next three weeks.

Such expiry patterns often precede volatility spikes, as option writers and buyers adjust their positions. The elevated turnover and contract volumes at these strikes imply that market makers and institutional players are actively managing risk and exposure, which could translate into increased liquidity and price swings in the underlying shares.

Sectoral Context and Comparative Performance

Within the consumer durables electronics sector, Dixon Technologies has been a standout performer, with the sector itself gaining 7.75% recently. This outperformance is partly driven by improving demand for electronic appliances, supply chain stabilisation, and favourable government policies supporting domestic manufacturing.

Despite the positive sectoral tailwinds, Dixon’s relative strength is tempered by its current technical setup and the recent Mojo rating downgrade. Investors should weigh these factors carefully, considering both the bullish option market signals and the broader market context before making allocation decisions.

Investor Takeaway: Balancing Bullish Sentiment with Caution

The surge in call option activity for Dixon Technologies signals a clear bullish bias among traders, with significant positioning at strikes close to and above the current market price. This optimism is supported by recent price gains and sectoral strength, suggesting potential for further upside in the near term.

However, the downgrade in Mojo rating to ‘Hold’ and the stock’s technical resistance at longer-term moving averages counsel prudence. The decline in delivery volumes also hints at some hesitation among long-term investors, which could limit sustained rallies without fresh positive triggers.

For investors considering exposure to Dixon Technologies, it is advisable to monitor option expiry developments closely, watch for confirmation of technical breakouts, and remain alert to sectoral and macroeconomic news that could influence the stock’s trajectory. Diversification and risk management remain key, especially given the mid-cap nature of the company and the inherent volatility in the electronics and appliances sector.

Outlook and Market Positioning

Looking ahead, Dixon Technologies’ ability to capitalise on growing domestic demand for electronics and appliances, coupled with its manufacturing capabilities, will be critical to sustaining momentum. The company’s market cap grade of 2 indicates moderate size and liquidity, which may attract institutional interest if positive earnings and operational metrics materialise.

In summary, the current option market activity provides valuable insight into investor expectations, highlighting a cautiously optimistic outlook. Market participants should continue to analyse evolving price action, option open interest trends, and sector dynamics to make informed decisions in this fast-moving environment.

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