HCL Technologies Sees Heavy Call Option Activity Ahead of March Expiry

Robust Call Option Activity Signals Bullish Sentiment

Data from the derivatives market reveals that HCL Technologies (NSE: HCLTECH) recorded 1,918 call option contracts traded at the 1400 strike price for the expiry on 30 March 2026. This activity generated a turnover of approximately ₹32.85 crores, underscoring strong investor interest in bullish bets on the stock. Open interest at this strike stands at 1,756 contracts, indicating sustained positions rather than short-term speculative trades.

The underlying stock price currently hovers around ₹1,401, closely aligned with the strike price, which often attracts heightened option activity as traders position themselves for potential upward moves or hedge existing holdings.

Price and Volume Trends Reflect Mixed Signals

HCL Technologies has delivered a 1.10% return on the day, slightly lagging the sector’s 1.12% gain and the broader Sensex’s 0.24% rise. Over the past two trading sessions, the stock has gained 3.8%, signalling a short-term positive momentum. However, it continues to trade below its key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — suggesting that the broader trend remains subdued.

Notably, delivery volume surged to 35.17 lakh shares on 25 February 2026, a 55.97% increase compared to the five-day average, indicating rising investor participation and confidence in the stock’s near-term prospects. This heightened activity could be a precursor to a breakout if sustained.

Dividend Yield and Market Capitalisation Context

HCL Technologies offers a relatively attractive dividend yield of 3.92% at current prices, which may appeal to income-focused investors amid volatile markets. The company’s market capitalisation stands at a substantial ₹3,78,094.96 crore, categorising it firmly as a large-cap stock with significant institutional interest and liquidity.

Liquidity metrics further support active trading, with the stock’s average traded value allowing for sizeable transactions up to ₹13.45 crore without significant market impact, a critical factor for options traders and institutional participants alike.

Mojo Score Downgrade Reflects Cautious Outlook

Despite the bullish option activity, MarketsMOJO’s latest assessment downgraded HCL Technologies from a Buy to a Hold rating on 9 February 2026, with a Mojo Score of 60.0. This reflects a more cautious stance, likely influenced by the stock’s inability to sustain above key moving averages and sector-relative underperformance.

The company’s market cap grade remains at 1, indicating its large-cap status, but the downgrade suggests investors should weigh near-term risks against the potential for recovery.

Expiry Patterns and Strike Price Concentration

The concentration of call option contracts at the 1400 strike price for the 30 March expiry is a notable feature. This strike is effectively at-the-money, which typically attracts speculative and hedging activity as traders anticipate directional moves in the underlying stock.

Open interest data shows that positions are being held rather than closed, implying that traders expect the stock to either hold steady or rise above this level by expiry. This positioning is consistent with a moderately bullish outlook, though the lack of significant open interest at higher strikes suggests tempered expectations for sharp rallies.

Sector and Market Comparisons

Within the Computers - Software & Consulting sector, HCL Technologies’ performance has been slightly below par, underperforming the sector by 0.3% on the day. However, the stock’s large market cap and liquidity profile make it a preferred choice for institutional investors seeking exposure to IT services.

Comparatively, the Sensex’s modest gain of 0.24% on the same day highlights the relative strength of the sector and the stock’s resilience amid broader market fluctuations.

Investor Takeaways and Outlook

For investors and traders, the surge in call option activity at the 1400 strike price ahead of the 30 March expiry signals a cautiously optimistic market view on HCL Technologies. The stock’s recent gains and rising delivery volumes support this sentiment, although the technical backdrop remains mixed due to its position below key moving averages.

Given the current Mojo Grade of Hold and the downgrade from Buy, investors should balance the bullish option positioning with the broader technical and fundamental context. The attractive dividend yield of 3.92% provides a cushion for long-term holders, while the large-cap status ensures liquidity and institutional interest.

Traders looking to capitalise on the options market should monitor open interest trends and expiry dynamics closely, as these will provide further clues on market expectations and potential price movements in the coming weeks.

Conclusion

HCL Technologies Ltd remains a focal point for options traders as the March expiry approaches, with significant call option volumes reflecting a tilt towards bullish positioning. While the stock’s technical indicators and recent downgrade counsel caution, the underlying fundamentals and investor participation suggest that HCLTECH could present opportunities for both traders and long-term investors willing to navigate near-term volatility.

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