Kalyan Jewellers Sees Surge in Call Option Activity Ahead of February Expiry

Robust Call Option Volumes Highlight Investor Optimism

Data from the derivatives market reveals that Kalyan Jewellers has emerged as one of the most actively traded stocks in call options this week. The highest volume was recorded for the 420 strike price call options, with 9,221 contracts traded, generating a turnover of approximately ₹2036.92 lakhs. This was closely followed by the 400 strike price calls, which saw 7,762 contracts traded and a turnover of ₹2282.82 lakhs, the highest among all strikes in terms of turnover.

Other significant strike prices include 410 and 450, with 6,572 and 6,164 contracts traded respectively. The open interest figures further corroborate this bullish positioning, with the 400 strike calls holding the highest open interest at 3,033 contracts, followed by 410 strike calls at 2,486 contracts. The 420 strike calls have an open interest of 1,827 contracts, indicating sustained interest close to the current market price.

Price Action and Market Context

Kalyan Jewellers has been on an upward trajectory, outperforming its sector by 8.09% on the day of reporting. The stock has gained 11.19% over the past two consecutive trading sessions, reflecting strong buying interest. It opened with a gap-up of 6.51% and touched an intraday high of ₹418.25, nearly 10% above its previous close. Despite this rally, the weighted average price suggests that most volume was traded closer to the lower end of the day’s price range, indicating cautious accumulation by traders.

Technically, the stock is trading above its 5-day and 20-day moving averages but remains below its 50-day, 100-day, and 200-day averages. This suggests a short-term bullish momentum within a longer-term consolidation phase. The broader sector of Diamond & Gold Jewellery has also gained 2.05%, but Kalyan Jewellers’ outperformance highlights its relative strength.

Market Capitalisation and Mojo Ratings

With a market capitalisation of ₹39,221 crores, Kalyan Jewellers is classified as a mid-cap stock within the Gems, Jewellery and Watches sector. The company’s Mojo Score currently stands at 53.0, reflecting a Hold rating, an upgrade from a previous Sell rating as of 19 January 2026. This improvement in grading indicates a positive shift in fundamentals or market perception, although the stock still faces some headwinds as reflected in its moderate Market Cap Grade of 2.

Expiry Patterns and Strike Price Concentration

The expiry date of 24 February 2026 is attracting significant open interest and turnover, suggesting that traders are positioning themselves for potential price movements in the near term. The concentration of call option activity around the 400 to 450 strike price range indicates that investors are betting on the stock to sustain or surpass its current levels within the next two weeks.

Notably, the 400 strike price call options have the highest open interest and turnover, signalling that this level is viewed as a critical support or breakout point. The 410 and 420 strike calls also show strong activity, reflecting a layered bullish strategy where traders are targeting incremental gains above the current market price of ₹420.10.

Investor Participation and Liquidity Considerations

Despite the strong price gains, delivery volumes have declined by 22.83% compared to the five-day average, with 13.23 lakh shares delivered on 6 February. This suggests that while speculative interest in options is rising, actual stock holding by investors is somewhat subdued. However, liquidity remains adequate, with the stock’s traded value supporting trade sizes of up to ₹3.88 crores comfortably, making it accessible for institutional and retail traders alike.

Implications for Investors and Traders

The surge in call option volumes and open interest at strike prices near and above the current market price reflects a predominantly bullish outlook among market participants. Traders appear to be positioning for a continuation of the recent rally, which has already delivered double-digit returns over two sessions. This optimism is supported by the upgrade in the Mojo Grade from Sell to Hold, signalling improving fundamentals or sentiment.

However, the stock’s position below longer-term moving averages suggests that caution is warranted, as resistance levels may cap upside in the near term. Investors should monitor the expiry on 24 February closely, as option expiry dynamics could induce volatility. Additionally, the decline in delivery volumes indicates that the rally may be driven more by short-term speculative flows than by sustained institutional accumulation.

For those considering exposure to Kalyan Jewellers, the current option market activity offers insights into market expectations and potential price targets. The heavy trading in 400 and 410 strike calls suggests these levels are key support zones, while the 450 strike calls represent a more ambitious upside target within the expiry timeframe.

Sector and Market Outlook

The Gems, Jewellery and Watches sector has shown resilience, with the Diamond & Gold Jewellery segment gaining 2.05% recently. Kalyan Jewellers’ outperformance within this sector highlights its relative strength and potential to capitalise on improving consumer demand and festive season sales. The mid-cap stock’s market cap of ₹39,221 crores places it in a competitive position to benefit from sectoral tailwinds.

Overall, the combination of strong call option activity, positive price momentum, and an upgraded Mojo rating suggests that Kalyan Jewellers is attracting renewed investor interest. Market participants should weigh these factors alongside broader macroeconomic conditions and sector-specific developments when making investment decisions.

Conclusion

Kalyan Jewellers India Ltd is currently a focal point for bullish option traders, with significant call option volumes and open interest concentrated around strike prices close to the current market value. The stock’s recent price gains and improved Mojo rating reinforce a cautiously optimistic outlook. While speculative interest is high, investors should remain mindful of technical resistance and delivery volume trends as indicators of underlying strength.

As the 24 February expiry approaches, the evolving option market dynamics will provide further clues on investor sentiment and potential price trajectories for this mid-cap gem in the jewellery sector.

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