Eicher Motors Ltd Sees Robust Call Option Activity Amid Bullish Sentiment

Robust Call Option Volumes Highlight Investor Optimism

On 27 February 2026, Eicher Motors Ltd (NSE: EICHERMOT) recorded significant call option volumes, particularly at the ₹8,200 and ₹8,500 strike prices, both expiring on 30 March 2026. The ₹8,200 strike saw the highest number of contracts traded at 2,889, generating a turnover of ₹629.25 lakhs and an open interest of 1,726 contracts. Meanwhile, the ₹8,500 strike price attracted 2,366 contracts with a turnover of ₹242.70 lakhs and an open interest of 1,428 contracts.

This elevated activity at strike prices above the current underlying value of ₹8,113.50 indicates a strong bullish bias, with traders anticipating the stock to breach these levels within the next month. The open interest figures further reinforce this view, as they reflect sustained interest and potential accumulation of long call positions.

Stock Performance and Technical Context

Despite the bullish options activity, Eicher Motors’ stock price experienced a marginal decline of 0.88% on the day, underperforming its sector by 0.71% and the Sensex by 0.34%. The stock hit a new 52-week high of ₹8,230 earlier in the session, underscoring its recent strength. However, it has retraced slightly after two consecutive days of gains, suggesting a short-term consolidation phase.

Technically, the stock remains in a strong uptrend, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This alignment of moving averages supports the bullish outlook and indicates healthy momentum. However, investor participation has shown signs of moderation, with delivery volumes falling by 8.96% to 1.8 lakh shares on 26 February compared to the five-day average, signalling cautiousness among some market participants.

Market Capitalisation and Fundamental Ratings

Eicher Motors commands a large-cap market capitalisation of ₹2,24,724 crores, reflecting its stature in the automobile industry. The company’s fundamentals have recently been upgraded by MarketsMOJO, with its Mojo Score improving to 78.0 and the Mojo Grade rising from Hold to Buy as of 11 November 2025. This upgrade is supported by strong financial metrics and a favourable growth outlook, making it an attractive proposition for long-term investors.

Expiry Patterns and Strategic Positioning

The expiry date of 30 March 2026 is attracting considerable attention, with traders actively building positions in call options at strike prices that are approximately 1.1% to 4.7% above the current spot price. This suggests a strategic bet on a near-term rally, possibly driven by expectations of positive earnings, new product launches, or favourable sectoral developments.

Open interest data reveals that the ₹8,200 strike price holds the highest concentration of outstanding contracts, indicating a key resistance level that traders expect the stock to challenge. The ₹8,500 strike, while slightly less active, still commands significant interest, pointing to optimism about a sustained upward move beyond recent highs.

Liquidity and Trading Viability

Eicher Motors remains a liquid stock, with an average traded value sufficient to support trade sizes of up to ₹6.59 crores based on 2% of the five-day average traded value. This liquidity ensures that both institutional and retail investors can enter and exit positions with relative ease, an important consideration given the active options market.

Sectoral and Broader Market Context

The automobile sector has been under pressure recently, with the sector index declining 0.65% on the day. Eicher Motors’ slight underperformance relative to the sector and the broader Sensex (-0.54%) may reflect short-term profit booking or sector rotation. However, the strong technical positioning and bullish options activity suggest that the stock is well placed to outperform once broader market sentiment stabilises.

Investor Takeaway

For investors, the current surge in call option activity at strike prices above the prevailing market price signals a growing conviction in Eicher Motors’ near-term upside potential. The combination of a recent fundamental upgrade, strong technical momentum, and robust liquidity makes the stock an appealing candidate for both directional bets and hedging strategies.

However, the slight decline in delivery volumes and recent price pullback caution against excessive exuberance. Investors should monitor upcoming corporate announcements and sector developments closely, as these will likely influence the stock’s trajectory ahead of the March expiry.

Overall, Eicher Motors Ltd remains a compelling large-cap automobile stock with a positive outlook, supported by both fundamental strength and active market positioning in the derivatives segment.

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