Eternal Ltd Sees Surge in Call Option Activity Amid Mixed Technical Signals

Call Option Activity Highlights

On 27 February 2026, Eternal Ltd emerged as the most active stock in call options trading, with 2,623 contracts exchanged at the ₹250 strike price. This activity generated a turnover of approximately ₹685.69 lakhs, reflecting significant investor interest in leveraged bullish positions. The open interest at this strike stands at 3,375 contracts, indicating sustained commitment from market participants ahead of the 30 March expiry.

The underlying stock price closed at ₹251.00, marginally above the strike price, which positions these call options as near-the-money. This proximity often attracts speculative and hedging activity, as traders anticipate a breakout beyond this level.

Stock Performance and Technical Context

Despite the recent bullish option activity, Eternal Ltd’s price trend remains mixed. The stock has gained 1.48% on the day, outperforming the sector’s 0.71% rise and the Sensex’s decline of 0.54%. Notably, the stock reversed an eight-day losing streak, signalling a potential shift in momentum.

However, Eternal is still trading below its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – which suggests that the broader trend remains under pressure. This technical backdrop implies that while short-term optimism is building, the stock faces resistance levels that must be overcome to confirm a sustained uptrend.

Investor participation has surged markedly, with delivery volumes on 26 February reaching 13.28 crore shares, a 299.81% increase compared to the five-day average. This spike in delivery volume underscores genuine buying interest rather than speculative intraday trading.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹43.75 crore, ensuring that large institutional orders can be executed without significant price impact.

Mojo Score and Analyst Ratings

Eternal Ltd currently holds a Mojo Score of 31.0, categorised as a Sell grade by MarketsMOJO, reflecting cautious sentiment from fundamental and technical perspectives. This rating was downgraded from Hold on 23 October 2025, signalling a deterioration in the company’s outlook based on recent financial metrics and sector dynamics.

The company’s market capitalisation stands at a substantial ₹2,37,785 crore, placing it firmly in the large-cap segment. Despite its size, the stock’s current technical weakness and modest momentum scores suggest that investors should approach with prudence, especially given the competitive pressures in the E-Retail and E-Commerce sector.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the ₹250 strike price expiring on 30 March 2026 is particularly noteworthy. This strike is closely aligned with the current market price, making it a focal point for traders expecting a breakout. The open interest of 3,375 contracts at this level indicates that a significant number of investors are positioning for a rally beyond ₹250 within the next month.

Such positioning often precedes increased volatility as expiry approaches, with traders adjusting their holdings based on price movements and broader market cues. The expiry date also coincides with the end of the financial year for many companies, which can add to market dynamics as investors rebalance portfolios.

Given the stock’s recent reversal after a prolonged decline, the call option activity may be signalling a tactical bullish stance, with investors anticipating a recovery or positive catalysts in the near term.

Sector and Market Context

The E-Retail and E-Commerce sector has been under pressure due to evolving consumer behaviour and intensifying competition. Eternal Ltd’s performance today, rising 1.60%, outpaces the sector’s modest 0.71% gain, suggesting relative strength. However, the broader market’s negative tone, with the Sensex down 0.54%, highlights the cautious environment investors face.

In this context, the surge in call option volumes may reflect selective optimism among traders who believe Eternal Ltd is poised to outperform peers or benefit from sector-specific developments such as festive season sales, strategic partnerships, or technological enhancements.

Investor Implications and Outlook

For investors, the heavy call option activity at the ₹250 strike price suggests a tactical bullish bias, but it should be weighed against the stock’s overall technical weakness and the Sell rating from MarketsMOJO. The recent reversal after eight consecutive days of decline is encouraging, yet the stock remains below all major moving averages, indicating that a confirmed uptrend is yet to materialise.

Investors with a higher risk appetite may consider participating in the near-term upside potential reflected in the options market, while more conservative investors might await clearer technical confirmation or fundamental improvements before increasing exposure.

Given the stock’s large-cap status and liquidity, it remains a viable candidate for portfolio inclusion, but the current Mojo Grade downgrade and sector headwinds warrant a cautious approach.

Monitoring open interest changes and price action around the ₹250 strike as expiry approaches will be critical for gauging market conviction and potential breakout scenarios.

Conclusion

Eternal Ltd’s surge in call option trading highlights a growing bullish sentiment among traders anticipating a price recovery. While the stock’s technical indicators remain subdued, the increased delivery volumes and outperformance relative to the sector provide some optimism. Investors should balance the near-term opportunities suggested by options market activity with the broader fundamental and technical context before making investment decisions.

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