Surge in Call Option Volumes and Open Interest
The most active call options for ITC Ltd are concentrated at the ₹315 and ₹320 strike prices, both expiring on 26 May 2026. The ₹315 strike has seen 3,147 contracts traded, generating a turnover of approximately ₹266.36 lakhs, while the ₹320 strike recorded 2,816 contracts with a turnover of ₹150.49 lakhs. Open interest figures further underscore the bullish positioning, with 7,382 contracts outstanding at ₹315 and 8,506 at ₹320.
This heightened activity at strikes above the current underlying price suggests that traders are anticipating a potential rally in ITC’s share price over the coming weeks. The open interest accumulation at these levels indicates sustained interest and possibly fresh buying, which could provide support to the stock as expiry nears.
Price and Trend Analysis
ITC’s stock price has recently reversed after two consecutive days of decline, signalling a tentative recovery. The share is trading above its 5-day, 20-day, and 50-day moving averages, which typically indicates short- to medium-term strength. However, it remains below the 100-day and 200-day moving averages, suggesting that longer-term momentum has yet to fully turn bullish.
Delivery volumes have also risen notably, with a delivery volume of 1.25 crore shares on 4 May representing a 21.02% increase over the five-day average. This uptick in investor participation lends further credence to the view that the stock is attracting renewed interest from market participants.
Sector and Market Context
ITC’s performance today is largely in line with the broader FMCG sector, which posted a 0.09% gain, while the Sensex declined by 0.41%. The stock’s one-day return was marginally negative at -0.19%, reflecting some short-term profit-taking or consolidation. Given ITC’s large-cap status with a market capitalisation of ₹3,89,666 crores, its movements often influence sector sentiment.
Mojo Score and Analyst Ratings
According to MarketsMOJO’s latest assessment dated 15 April 2026, ITC holds a Mojo Score of 57.0 and a Mojo Grade of ‘Hold’, upgraded from a previous ‘Sell’ rating. This improvement reflects a stabilisation in fundamentals and technical indicators, though the grade suggests investors should maintain a cautious stance rather than aggressively accumulate at this stage.
Liquidity and Trading Considerations
Liquidity remains robust for ITC, with the stock’s traded value comfortably supporting trade sizes up to ₹11.91 crores based on 2% of the five-day average traded value. This ensures that institutional and retail investors can execute sizeable trades without significant market impact, an important factor given the active options interest.
Implications for Investors
The concentrated call option activity at strikes slightly above the current market price indicates a cautiously bullish sentiment among traders, who may be positioning for a rally towards or beyond ₹320 by the May expiry. Investors should monitor the stock’s ability to sustain gains above key moving averages and watch for any shifts in open interest that could signal changes in market conviction.
While the upgraded Mojo Grade to ‘Hold’ suggests improving fundamentals, the stock’s position below longer-term moving averages advises prudence. Investors with a bullish outlook might consider selective exposure, balancing potential upside with the risk of volatility as expiry approaches.
Outlook Ahead of Expiry
As the 26 May expiry date draws near, the options market activity in ITC Ltd will remain a key barometer of investor sentiment. The strong open interest and turnover at the ₹315 and ₹320 call strikes highlight a market expectation of moderate upside, though the relatively narrow price range and mixed technical signals suggest that any rally may be gradual rather than explosive.
Market participants should also be mindful of broader sector trends and macroeconomic factors that could influence FMCG stocks, including consumer demand patterns and regulatory developments. ITC’s large-cap stature and diversified business model provide some defensive qualities, but the stock’s near-term trajectory will likely hinge on its ability to break decisively above the 100-day moving average resistance.
