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

Strong Call Option Activity Highlights Bullish Positioning

On 31 Dec 2025, Indus Towers Ltd (stock code: 433635) recorded an impressive surge in call option contracts, with 4,097 contracts traded for the 27 Jan 2026 expiry at a strike price of ₹430. This activity generated a turnover of ₹1,022.45 lakhs, underscoring significant investor interest in the stock’s upward potential. The open interest for these contracts stands at 1,893, indicating sustained positions rather than short-term speculative trades.

The underlying stock price at the time was ₹425.75, just shy of the ₹430 strike, suggesting traders are positioning for a breakout above this level in the near term. The stock’s intraday high of ₹432.9 on the same day marked a fresh 52-week peak, reinforcing the bullish narrative.

Technical Indicators Support Positive Momentum

Indus Towers is currently trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment of short- and long-term technical indicators typically signals strong upward momentum and investor confidence. The stock’s 1-day return of 1.10% is in line with the sector’s 1.37% gain, outperforming the broader Sensex’s modest 0.17% rise.

However, it is worth noting that delivery volume has declined by 30.48% compared to the 5-day average, with 17.76 lakh shares delivered on 30 Dec 2025. This drop in investor participation could suggest some caution or profit-taking despite the positive price action.

Market Capitalisation and Mojo Grade Upgrade

Indus Towers commands a substantial market capitalisation of ₹1,11,792 crore, firmly placing it in the large-cap category. The company’s Mojo Score has improved to 67.0, leading to an upgrade in its Mojo Grade from Sell to Hold as of 7 Nov 2025. This upgrade reflects a more balanced outlook, with the stock showing signs of stabilising after previous weakness.

Despite the Hold rating, the improved score and recent price action suggest that investors are increasingly optimistic about the company’s prospects, particularly in the context of the telecom equipment and accessories sector, which continues to benefit from rising data consumption and network expansion.

Expiry Patterns and Strike Price Analysis

The concentration of call option activity at the ₹430 strike price for the 27 Jan 2026 expiry is particularly telling. This strike is slightly above the current market price, indicating that traders expect the stock to breach this level within the next month. The sizeable open interest suggests that many investors are holding these positions, anticipating a sustained rally.

Such positioning often precedes positive corporate developments or sector tailwinds. Given the telecom sector’s ongoing infrastructure investments and Indus Towers’ strategic role as a leading tower infrastructure provider, these expectations appear well-founded.

Liquidity and Trading Dynamics

Liquidity remains robust for Indus Towers, with the stock’s traded value supporting trade sizes up to ₹4.3 crore based on 2% of the 5-day average traded value. This level of liquidity is crucial for institutional investors and options traders seeking to enter or exit sizeable positions without significant price impact.

While the delivery volume decline signals some reduction in investor participation, the overall trading activity and option turnover suggest that market participants remain engaged and optimistic about the stock’s near-term trajectory.

Sector Context and Comparative Performance

Within the Telecom - Equipment & Accessories sector, Indus Towers’ performance is noteworthy. The sector itself gained 1.37% on the day, slightly outperforming the Sensex’s 0.17% rise. Indus Towers’ 1.10% gain aligns closely with sector momentum, suggesting that the stock is participating in broader industry tailwinds.

Given the company’s large-cap status and strategic importance in telecom infrastructure, it remains a key bellwether for the sector. Investors should monitor upcoming earnings reports and sector developments, as these will likely influence the stock’s trajectory and option market activity.

Outlook and Investor Considerations

While the recent call option surge and technical indicators point to a bullish outlook, investors should remain cautious given the Hold Mojo Grade and the recent dip in delivery volumes. The stock’s ability to sustain levels above ₹430 will be critical in confirming the bullish momentum.

Long-term investors may view the current price action as an opportunity to accumulate, especially given the company’s market leadership and sector growth prospects. However, short-term traders should watch for volatility around the January expiry and be mindful of broader market conditions.

Summary

Indus Towers Ltd’s recent surge in call option activity, combined with a new 52-week high and an upgrade in Mojo Grade, signals growing investor confidence. The ₹430 strike price for January expiry is a focal point for bullish positioning, supported by strong technicals and sector tailwinds. While delivery volume has softened, liquidity remains ample, making the stock attractive for both institutional and retail participants. Investors should balance optimism with caution, monitoring upcoming market catalysts closely.

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