Indus Towers Ltd Sees Surge in Call Option Activity Amid Bullish Momentum

Robust Price Performance and Market Position

On 9 January 2026, Indus Towers Ltd (NSE: INDUSTOWER) hit an intraday high of ₹454.95, marking a fresh 52-week peak. The stock outperformed its sector by 1.37% and the broader Sensex by a notable margin, registering a 2.04% gain against the Sensex's marginal decline of 0.19%. This rally follows two consecutive days of gains, cumulatively delivering a 3% return, underscoring sustained investor interest.

The stock opened with a gap up of 4.44%, signalling strong buying momentum from the outset. It currently trades above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a well-established uptrend. Delivery volumes have also risen, with 55.57 lakh shares delivered on 8 January, a 7.08% increase over the five-day average, highlighting rising investor participation.

Call Option Activity Highlights Bullish Positioning

The most active call options for Indus Towers are concentrated around the 27 January 2026 expiry, with strike prices at ₹450 and ₹460 attracting the highest volumes. The ₹450 strike call saw 8,636 contracts traded, generating a turnover of ₹1,845.43 lakhs and an open interest of 2,705 contracts. Meanwhile, the ₹460 strike call recorded 5,502 contracts traded, with turnover of ₹828.71 lakhs and open interest of 1,790 contracts. These figures reflect a strong bullish bias, as traders position for further upside beyond the current underlying value of ₹442.40.

The elevated open interest at these strikes suggests that market participants are anticipating the stock to breach these levels by expiry, reinforcing the positive outlook. The high turnover in call options also indicates active speculative and hedging activity, which often precedes significant price movements.

Mojo Score Upgrade Reflects Improving Fundamentals

Indus Towers' MarketsMOJO score has improved to 67.0, upgrading the stock's mojo grade from Sell to Hold as of 7 November 2025. This upgrade reflects better financial metrics and trend assessments, although the company retains a market cap grade of 1, indicating its large-cap status with a market capitalisation of ₹1,13,652 crores. The mojo grade suggests cautious optimism, balancing the stock's recent price strength against valuation and sector dynamics.

Sector Context and Liquidity Considerations

Operating within the Telecom - Equipment & Accessories sector, Indus Towers benefits from steady demand driven by expanding telecom infrastructure and 5G rollout plans. The stock's liquidity is robust, with a five-day average traded value supporting trade sizes up to ₹7.33 crores, ensuring ease of entry and exit for institutional and retail investors alike.

Its day change of 3.10% on the reporting day further emphasises the stock's outperformance relative to peers. The combination of strong price action, rising delivery volumes, and active options market participation paints a picture of growing confidence in the company's near-term growth trajectory.

Options Expiry Patterns and Investor Sentiment

The concentration of call option activity around the 27 January expiry is noteworthy. This expiry date is less than three weeks away, suggesting that traders are positioning for a short-term rally. The strike prices chosen—₹450 and ₹460—are slightly above the current market price, indicating expectations of moderate upside.

Open interest data reveals that the ₹450 strike has the highest open interest, signalling that many investors are either holding or writing calls at this level. The substantial turnover in these strikes also points to active trading, possibly reflecting a mix of speculative bets and hedging strategies by market participants.

Balancing Optimism with Caution

While the surge in call option activity and the stock’s strong technicals suggest bullish sentiment, investors should remain mindful of broader market volatility and sector-specific risks. The telecom equipment industry faces challenges such as regulatory changes, competitive pressures, and capital expenditure cycles that can impact earnings visibility.

Moreover, the mojo grade of Hold indicates that while fundamentals have improved, the stock may not yet warrant a full bullish endorsement. Investors should consider these factors alongside technical signals when making allocation decisions.

Outlook and Strategic Implications

Indus Towers Ltd’s recent price action and options market dynamics suggest that the stock is poised for potential near-term gains, supported by strong investor interest and improving fundamentals. The active call option strikes at ₹450 and ₹460 for the January expiry reflect a consensus expectation of upside in the coming weeks.

For traders, this presents opportunities to capitalise on momentum through options strategies or direct equity exposure. For longer-term investors, the upgrade in mojo score and sustained volume growth provide a basis for cautious accumulation, particularly if the stock maintains its technical strength and sector tailwinds persist.

Summary

Indus Towers Ltd is currently in the spotlight due to its robust call option activity and strong price performance. The stock’s new 52-week high, rising delivery volumes, and improved mojo grade collectively indicate a positive shift in market sentiment. However, investors should weigh these bullish signals against sector risks and valuation considerations before committing capital.

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