Maruti Suzuki Sees Surge in Call Option Activity Amid Bullish Sentiment

Robust Call Option Activity Highlights Bullish Positioning

On 10 February 2026, Maruti Suzuki witnessed a remarkable spike in call option trading, with 12,395 contracts exchanged at the ₹16,000 strike price expiring on 24 February 2026. This activity generated a turnover of approximately ₹28.48 crores, underscoring significant investor interest in leveraged bullish bets on the automobile giant. Open interest at this strike stands at 7,147 contracts, indicating sustained positioning rather than short-term speculative trades.

The underlying stock price closed at ₹15,259, suggesting that traders are anticipating a notable upside of nearly 5% to reach the strike price within the next two weeks. This optimism is further reinforced by the stock’s 1-day return of 2.23%, outperforming the automobile sector’s 1.96% gain and the broader Sensex’s modest 0.33% rise on the same day.

Price and Trend Analysis: Signs of Recovery and Consolidation

Maruti Suzuki’s recent price action reveals a trend reversal after three consecutive days of decline, with the stock gaining momentum on 10 February. The share price currently trades above its 5-day and 200-day moving averages, signalling short-term strength and long-term support. However, it remains below the 20-day, 50-day, and 100-day moving averages, indicating that the medium-term trend is still consolidating and investors should watch for confirmation of sustained upward movement.

Investor participation has shown signs of waning, with delivery volume on 9 February falling by 54.97% to 1.34 lakh shares compared to the 5-day average. Despite this, liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹12 crore comfortably.

Fundamental and Market Context

Maruti Suzuki India Ltd, a large-cap automobile company with a market capitalisation of ₹4,81,413.22 crores, holds a Mojo Score of 62.0 and a Mojo Grade of Hold as of 12 January 2026, downgraded from Buy. This adjustment reflects a cautious stance amid evolving market conditions and sector dynamics. The company’s market cap grade is 1, indicating its significant presence in the market.

Despite the downgrade, the stock’s recent outperformance relative to the sector and Sensex suggests that investors are selectively bullish, possibly anticipating positive catalysts such as improved sales volumes, new model launches, or favourable policy developments in the automobile sector.

Expiry Patterns and Strategic Implications

The 24 February 2026 expiry date is attracting concentrated call option activity, which often precedes significant price movements as traders position themselves ahead of quarterly results, policy announcements, or macroeconomic data releases. The ₹16,000 strike price, approximately 5% above the current market price, represents a key psychological and technical level that investors expect the stock to challenge or surpass in the near term.

Open interest accumulation at this strike suggests that market participants are not merely speculating but are establishing directional bets with a medium-term horizon. This behaviour typically reflects confidence in the company’s fundamentals or sector outlook, as well as a willingness to absorb premium costs for potential upside gains.

Comparative Sector and Market Performance

Maruti Suzuki’s performance today aligns closely with the automobile sector’s positive momentum, which has been buoyed by easing supply chain constraints and rising consumer demand for personal vehicles. The stock’s outperformance relative to the Sensex indicates selective investor preference for quality large caps within cyclical sectors.

However, the downgrade to a Hold rating by MarketsMOJO on 12 January 2026 signals that while the stock remains attractive, investors should remain vigilant for potential volatility or sector headwinds such as rising input costs or regulatory changes.

Investor Takeaways and Outlook

For investors, the heightened call option activity in Maruti Suzuki signals a cautiously optimistic outlook. The stock’s recovery after a brief correction, combined with strong liquidity and sector tailwinds, supports the case for potential upside in the near term. However, the Hold rating and mixed moving average signals counsel prudence, suggesting that investors should monitor price action closely and consider risk management strategies.

Options traders appear to be positioning for a breakout above ₹16,000 by the end of February, which could be triggered by positive earnings surprises, favourable policy announcements, or sustained demand growth in the automobile sector. Conversely, failure to breach this level may result in profit-taking and increased volatility.

Overall, Maruti Suzuki remains a key stock to watch within the automobile space, with its option market activity providing valuable insights into investor sentiment and potential price trajectories.

Conclusion

Maruti Suzuki India Ltd’s surge in call option trading ahead of the 24 February expiry highlights a growing bullish consensus among market participants. While the stock’s fundamentals and sector outlook remain supportive, the recent downgrade to Hold and mixed technical signals suggest a balanced approach. Investors should weigh the potential for upside against prevailing risks and consider the evolving market context when making investment decisions.

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