Maruti Suzuki Sees Heavy Call Option Activity Ahead of February Expiry

Call Option Activity Highlights

Data from the derivatives market reveals that Maruti Suzuki’s call options expiring on 24 February 2026 have witnessed substantial trading volumes. The ₹15,000 strike call option recorded the highest number of contracts traded at 4,785, generating a turnover of ₹530.87 lakhs. Meanwhile, the ₹15,500 strike call option saw 4,048 contracts traded with a turnover of ₹200.50 lakhs. Open interest figures further underscore the strong positioning, with 4,789 contracts open at the ₹15,000 strike and 5,483 at ₹15,500.

These figures are particularly notable given the underlying stock price of ₹14,499 as of 30 January 2026, indicating that traders are betting on a meaningful price appreciation beyond these strike levels within the next month. The concentration of open interest at these strikes suggests a consensus expectation of upward momentum, possibly driven by positive sectoral trends or company-specific catalysts.

Stock Performance and Technical Context

Maruti Suzuki’s stock price has shown resilience relative to its sector and the broader market. On 30 January, the stock outperformed the automobile sector by 0.55%, registering a modest gain of 0.07% compared to sector and Sensex declines of 0.47% and 0.48% respectively. However, the stock’s moving average profile is mixed; it trades above its 200-day moving average but remains below the 5-day, 20-day, 50-day, and 100-day averages. This suggests a short-term consolidation phase amid a longer-term bullish backdrop.

Investor participation has been on the rise, with delivery volumes reaching 3.73 lakh shares on 29 January, a 15.59% increase over the five-day average. Liquidity remains robust, supporting sizeable trade executions with an average traded value sufficient to handle ₹22.32 crore in trade size comfortably.

Fundamental and Rating Update

Maruti Suzuki India Ltd, a large-cap automobile company with a market capitalisation of ₹4,55,868 crore, has recently seen its mojo grade downgraded from Buy to Hold as of 12 January 2026. The current mojo score stands at 62.0, reflecting a cautious stance amid evolving market conditions. The downgrade signals that while the company maintains solid fundamentals, near-term catalysts may be limited or offset by sectoral headwinds such as rising input costs or regulatory challenges.

Implications of Call Option Concentration

The heavy call option activity at the ₹15,000 and ₹15,500 strikes suggests that traders are positioning for a price rally of approximately 3.5% to 7% from the current underlying price. This is a significant premium, indicating confidence in near-term positive developments. Such optimism could be driven by expectations of strong quarterly earnings, new product launches, or favourable policy announcements impacting the automobile sector.

Open interest build-up at these strikes also points to potential support levels, as option writers may hedge their positions by buying the underlying shares, thereby providing price support. Conversely, if the stock fails to breach these levels by expiry, option premiums may decay, leading to profit-taking and increased volatility.

Sectoral and Market Context

The automobile sector has been navigating a complex environment marked by fluctuating commodity prices, supply chain constraints, and evolving consumer demand patterns. Maruti Suzuki’s relative outperformance on 30 January, despite a broadly negative sectoral trend, highlights its resilience and market leadership. However, the downgrade to a Hold rating reflects caution, as the company faces margin pressures and competitive challenges from emerging electric vehicle players.

Investors should weigh these factors carefully, considering both the technical bullish signals from options activity and the fundamental caution embedded in the mojo grade. The stock’s liquidity and rising delivery volumes suggest that institutional investors remain engaged, which could provide stability amid market fluctuations.

Investor Takeaway

Maruti Suzuki’s active call option market and open interest concentration at strikes above the current price reflect a cautiously optimistic outlook among traders. While the downgrade to Hold signals some near-term risks, the stock’s relative strength and liquidity profile make it a key name to watch in the automobile sector. Investors should monitor upcoming earnings releases and sector developments closely, as these will likely influence the stock’s trajectory and option market dynamics.

Given the mixed technical signals, a prudent approach would be to consider partial exposure with defined risk parameters, especially for those looking to capitalise on the anticipated upside reflected in the options market. The evolving macroeconomic environment and competitive landscape warrant ongoing reassessment of the stock’s fundamentals and market positioning.

Conclusion

Maruti Suzuki India Ltd’s call option activity ahead of the 24 February expiry highlights a significant degree of bullish positioning, with investors betting on a price recovery beyond ₹15,000. Despite a recent mojo grade downgrade to Hold, the stock’s outperformance relative to its sector and rising investor participation underscore its continued relevance in portfolios. Market participants should balance the technical optimism with fundamental caution, keeping a close eye on sector trends and company-specific news to navigate the coming weeks effectively.

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