Dixon Technologies Sees Surge in Call Option Activity Amid Bullish Sentiment

Strong Call Option Volumes Highlight Investor Confidence

The electronics and appliances company witnessed substantial call option trading on 1 February 2026, with the 11,000 strike price call contracts seeing 7,626 contracts traded, generating a turnover of ₹1411.92 lakhs. Open interest at this strike stands at 5,472 contracts, underscoring sustained investor interest. Even more notable is the 11,500 strike price call, which recorded 9,941 contracts traded and a turnover of ₹1146.25 lakhs, with open interest at 2,987 contracts.

These strike prices are notably above the underlying stock price of ₹10,642, indicating a bullish stance among option traders who anticipate upward price movement in the near term. The concentration of activity at these higher strikes suggests that market participants are positioning for a potential rally beyond current levels by the February expiry.

Stock Performance and Technical Context

Dixon Technologies has been on a steady upward trajectory, gaining for four consecutive days and delivering a cumulative return of 4.44% during this period. On 1 February, the stock touched an intraday high of ₹10,700, marking a 2.43% increase from the previous close. While the stock price remains above its 5-day moving average, it is still trading below its 20-day, 50-day, 100-day, and 200-day moving averages, indicating that the short-term momentum is positive but longer-term trends remain cautious.

Investor participation has also surged, with delivery volumes on 30 January reaching 4.17 lakh shares, a 139.35% increase compared to the five-day average. This heightened liquidity supports the active options market and provides a robust foundation for price discovery.

Mojo Score and Market Capitalisation Insights

Dixon Technologies currently holds a Mojo Score of 51.0 and a Mojo Grade of Hold, a downgrade from its previous Buy rating on 3 November 2025. The downgrade reflects a more cautious outlook based on comprehensive financial and trend assessments. The company’s market capitalisation stands at ₹64,539.29 crore, placing it firmly in the mid-cap category with a Market Cap Grade of 2.

Despite the Hold rating, the stock’s recent price action and derivatives activity suggest that investors are selectively optimistic, possibly anticipating positive catalysts or sectoral tailwinds in the electronics and appliances industry.

Expiry Patterns and Implications for Investors

The February 24, 2026 expiry date is attracting the bulk of call option activity, which is typical as traders position themselves ahead of monthly expiries. The high open interest at the 11,000 and 11,500 strike prices suggests that investors are betting on a meaningful price appreciation within the next three weeks.

Given the underlying value of ₹10,642, the 11,000 strike represents a 3.3% premium, while the 11,500 strike is approximately 8.1% above the current market price. This spread indicates a range of bullish expectations, from moderate to more aggressive upside targets.

Sectoral Context and Relative Performance

On the day of reporting, Dixon Technologies’ 1-day return was 1.81%, slightly below the Electronics & Appliances sector return of 1.96%, but comfortably ahead of the Sensex’s modest 0.19% gain. This relative performance highlights the stock’s resilience and appeal within its sector, even as broader market conditions remain mixed.

Liquidity metrics further reinforce the stock’s tradability, with average traded value supporting trade sizes of up to ₹20.03 crore, making it accessible for institutional and retail investors alike.

Investor Takeaways and Outlook

The pronounced call option activity in Dixon Technologies signals a clear bullish sentiment among derivatives traders, who are positioning for a potential price breakout above the 11,000 and 11,500 strike levels by late February. This optimism is supported by the stock’s recent gains and rising delivery volumes, although the Hold rating and technical indicators advise caution on longer-term momentum.

Investors should monitor the stock’s ability to sustain gains above key moving averages and watch for any sectoral developments that could catalyse further upside. The mid-cap status and moderate Mojo Score suggest that while the stock offers growth potential, it also carries inherent volatility risks typical of its category.

Overall, the derivatives market activity provides a valuable barometer of market expectations, and Dixon Technologies remains a stock to watch closely as expiry approaches.

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