Mankind Pharma Sees Robust Call Option Activity Amid Bullish Momentum

Robust Call Option Volumes Highlight Investor Optimism

On 26 Feb 2026, Mankind Pharma Ltd (NSE: MANKIND) emerged as one of the most actively traded stocks in the call options segment. The underlying stock closed at ₹2,253.20, with call options expiring on 30 Mar 2026 attracting substantial interest. Notably, the 2,400 strike call option led the pack with 5,493 contracts traded, followed closely by the 2,300 strike with 5,247 contracts and the 2,200 strike with 4,359 contracts.

The turnover figures for these strikes were equally impressive, with the 2,200 strike generating ₹857.59 lakhs, the 2,300 strike ₹570.81 lakhs, and the 2,400 strike ₹309.60 lakhs. Open interest data further corroborates this bullish positioning, showing a rising trend with 906 contracts open at the 2,400 strike, 780 at 2,300, and 450 at 2,200. This concentration of activity at strikes above the current price suggests that traders are positioning for a potential upward move in the coming weeks.

Price Performance and Technical Indicators Support Positive Outlook

Mankind Pharma’s stock price has been on a steady ascent, gaining 11.24% over the past four consecutive trading sessions. On 26 Feb, it outperformed the Pharmaceuticals & Biotechnology sector by 3.67%, registering a daily gain of 4.59% compared to the sector’s 0.66% and the Sensex’s 0.21%. The stock touched an intraday high of ₹2,261.90, reflecting strong buying interest.

Technical analysis reveals that the stock is trading above its 5-day, 20-day, 50-day, and 100-day moving averages, indicating short- to medium-term strength. However, it remains below the 200-day moving average, suggesting some longer-term resistance. Rising delivery volumes, which surged by 122.06% to 4.39 lakh shares on 25 Feb compared to the 5-day average, further confirm increased investor participation and confidence.

Mojo Grade Downgrade Reflects Caution Despite Positive Momentum

Despite the recent bullish price action and option market enthusiasm, Mankind Pharma’s Mojo Score stands at 44.0 with a Mojo Grade of Sell, downgraded from Hold on 19 Nov 2025. The downgrade reflects concerns over the company’s medium-term fundamentals and valuation metrics. The Market Cap Grade is a low 2, indicating limited market capitalisation strength relative to peers.

Investors should weigh this cautionary signal against the evident short-term momentum and option market optimism. The stock’s liquidity remains adequate, with a 5-day average traded value supporting trade sizes up to ₹1.88 crore, ensuring smooth execution for institutional and retail participants alike.

Expiry Patterns and Strike Price Concentration Suggest Strategic Positioning

The concentration of call option activity at strikes of ₹2,200, ₹2,300, and ₹2,400 expiring on 30 Mar 2026 indicates that traders are betting on a price appreciation of approximately 4% to 7% over the next month. This aligns with the stock’s recent intraday highs and technical positioning.

Open interest accumulation at higher strikes, particularly the 2,400 strike with 906 contracts, suggests that market participants are not only speculating on moderate gains but also hedging for a more substantial rally. This could be driven by expectations of positive sectoral developments or company-specific catalysts in the near term.

Sectoral Context and Comparative Performance

Within the Pharmaceuticals & Biotechnology sector, Mankind Pharma’s outperformance is notable. The sector’s 1-day return of 0.66% pales in comparison to Mankind’s 4.59% gain, underscoring the stock’s relative strength. This divergence may attract further investor interest, especially from those seeking mid-cap exposure with growth potential.

However, the sector remains competitive, with several other mid-cap and large-cap stocks exhibiting stronger fundamental grades and higher Mojo Scores. Investors should consider these factors when evaluating Mankind Pharma’s risk-reward profile.

Investor Takeaway: Balancing Momentum with Caution

For investors tracking Mankind Pharma Ltd, the surge in call option activity and recent price gains present an intriguing opportunity. The market’s positioning at strikes above the current price level suggests confidence in further upside, potentially driven by sector tailwinds or company-specific developments.

Nonetheless, the downgrade in Mojo Grade to Sell and the modest Market Cap Grade highlight underlying risks. Investors should carefully monitor upcoming quarterly results, regulatory updates, and sector dynamics before committing significant capital.

Given the stock’s liquidity and active options market, sophisticated investors may consider tactical option strategies to capitalise on expected volatility while managing downside risk. Meanwhile, those seeking more stable or fundamentally stronger alternatives within the Pharmaceuticals & Biotechnology space may benefit from comparative analysis tools to identify superior candidates.

Outlook and Market Sentiment

Looking ahead, Mankind Pharma’s price trajectory will likely be influenced by broader market conditions, sector performance, and company-specific news flow. The current bullish option positioning indicates optimism for a price move towards or beyond the ₹2,400 level by the March expiry, representing a potential 6.5% gain from current levels.

Investors should remain vigilant for shifts in open interest and volume patterns, which often precede significant price moves. Additionally, monitoring the stock’s ability to breach its 200-day moving average will be critical in confirming a sustained uptrend.

Summary

Mankind Pharma Ltd’s recent surge in call option volumes and open interest at strikes above the current market price reflects a bullish sentiment among traders anticipating further gains. The stock’s strong short-term price performance and rising delivery volumes support this view, although a recent downgrade in fundamental grading advises caution. Investors are advised to balance the evident momentum with a thorough assessment of risks and consider alternative opportunities within the sector.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today