Key Events This Week
19 Jan: Significant open interest surge amid mixed price action
20 Jan: Robust call option activity signalling bullish momentum
21 Jan: Sharp open interest increase amid bearish price action
23 Jan: Surge in call option activity ahead of January expiry
19 January: Open Interest Surges Amid Mixed Price Action
On 19 January 2026, L&T Finance Ltd’s stock opened sharply lower but managed to close higher at ₹300.20, up 1.32% from the previous close. Despite the gap down opening and an intraday low of ₹282.30, the stock showed resilience supported by a 10.7% increase in open interest in its derivatives segment, rising to 54,768 contracts. This surge in open interest, alongside a total traded volume of 1,34,660 contracts, indicated heightened market activity and shifting positioning among traders.
The futures segment alone accounted for a notional value of approximately ₹1,41,202 lakhs, while options turnover reached ₹76,883.79 crores, underscoring significant speculative and hedging interest. The stock traded above its 100-day and 200-day moving averages, signalling a longer-term bullish bias, although it remained below shorter-term averages, suggesting near-term resistance. Delivery volumes declined slightly, indicating moderated investor participation despite the derivatives activity.
20 January: Bullish Momentum Evident in Call Option Activity
The following day, L&T Finance Ltd saw robust call option activity, emerging as the most actively traded stock in the call options segment. A total of 5,883 call contracts at the ₹310 strike price were traded, generating a turnover of ₹582.42 lakhs. This strike price was slightly above the underlying stock price of ₹293.60, signalling bullish sentiment ahead of the 27 January expiry.
The stock closed down 2.20% at ₹293.60, underperforming intraday highs but still demonstrating resilience relative to the broader market. Delivery volumes surged to 65.32 lakh shares, a 121.09% increase over the five-day average, indicating genuine accumulation. The stock traded above its 5-day, 50-day, 100-day, and 200-day moving averages, though slightly below the 20-day average, reflecting a strong medium- to long-term trend with some short-term consolidation.
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21 January: Open Interest Spikes Amid Bearish Price Action
On 21 January, the stock faced significant selling pressure, closing at ₹281.30, down 4.19% on the day and underperforming the NBFC sector by 3.66%. Despite the bearish price action, open interest surged 14.5% to 62,167 contracts, accompanied by a total traded volume of 1,49,386 contracts. This divergence suggested increased short positioning or hedging activity amid a volatile market environment.
The futures segment’s notional value was approximately ₹1,61,264.5 lakhs, while options turnover reached ₹82,784.1 crores, reflecting active speculative and risk management strategies. Delivery volumes dropped sharply by 47.88% to 19.47 lakh shares, indicating waning investor conviction. Technically, the stock traded below its short-term moving averages but remained above its 100-day and 200-day averages, signalling bearish momentum in the near term but potential long-term support.
23 January: Call Option Activity Surges Ahead of Expiry
As the week closed, L&T Finance Ltd witnessed a surge in call option contracts at the ₹305 strike price, with 20,075 contracts traded generating ₹573.64 lakhs in turnover. The underlying stock price closed at ₹288.45, up 0.49% on the day, outperforming the sector by 2.34% and the Sensex by 1.42%. This activity reflected growing bullish positioning ahead of the 27 January expiry, with open interest at this strike standing at 3,775 contracts.
The stock’s technical setup remained mixed, trading above its 100-day and 200-day moving averages but below shorter-term averages, indicating some near-term resistance. Delivery volumes increased modestly by 2.7%, supporting the recent price gains. The mid-cap stock’s market capitalisation stood at ₹72,561 crore, with a Mojo Score of 65.0 and a Hold grade, reflecting cautious optimism amid sectoral recovery and improving fundamentals.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.300.20 | +1.32% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.293.60 | -2.20% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.281.30 | -4.19% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.287.05 | +2.04% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.288.45 | +0.49% | 35,609.90 | -1.33% |
Key Takeaways
Positive Signals: Despite a 2.65% weekly decline, L&T Finance Ltd outperformed the Sensex by 0.66%, supported by strong derivatives market activity and rising call option volumes ahead of expiry. The stock’s position above its 100-day and 200-day moving averages indicates underlying medium- to long-term strength. Delivery volumes surged notably on 20 January, reflecting genuine accumulation rather than speculative trading.
Cautionary Signals: The sharp declines on 20 and 21 January, accompanied by rising open interest, suggest increased bearish positioning and short-term volatility. The stock’s trading below short-term moving averages and the Hold Mojo Grade indicate near-term resistance and a cautious outlook. The concentration of call options near strike prices close to the current market price may lead to heightened volatility as expiry approaches.
Conclusion
L&T Finance Ltd’s week was characterised by significant volatility driven by active derivatives positioning and mixed price action. The stock’s ability to outperform the broader market despite a weekly decline highlights relative resilience amid sectoral and macroeconomic challenges. Elevated open interest and call option activity reflect both bullish optimism and bearish hedging, underscoring a market in flux.
Investors and traders should monitor the evolving technical signals and expiry-related option dynamics closely. While the medium- to long-term trend remains intact, near-term momentum is uncertain, warranting a balanced and watchful approach to L&T Finance Ltd’s stock in the coming weeks.
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