ONGC Sees Robust Call Option Activity Ahead of March Expiry Amid Bullish Sentiment

Robust Call Option Volumes at Key Strike Prices

Data from the derivatives market reveals that ONGC’s call options with expiry on 30 March 2026 have attracted significant interest, particularly at strike prices of ₹280, ₹290, and ₹300. The ₹280 strike call option recorded the highest number of contracts traded at 5,365, generating a turnover of ₹1,318.18 lakhs and an open interest of 4,647 contracts. This level is just above the current underlying value of ₹277.05, indicating that traders are positioning for a modest rally.

The ₹300 strike call option followed closely with 5,653 contracts traded, turnover of ₹618.16 lakhs, and the highest open interest among the three at 5,572 contracts. This suggests a strong speculative interest in the stock reaching or surpassing this level by expiry. Meanwhile, the ₹290 strike call option saw 3,776 contracts traded with a turnover of ₹610.01 lakhs and open interest of 3,007 contracts, reinforcing the bullish positioning across a range of near-the-money strikes.

Underlying Stock Performance and Technical Indicators

Despite the heightened call option activity, ONGC’s stock price experienced a marginal decline of 0.90% on the day, closing at ₹277.05. However, it outperformed its sector, which fell by 1.21%, and the broader Sensex, which declined by 2.88%. This relative resilience is noteworthy given the overall market weakness.

Technical analysis shows that ONGC’s price remains above its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained uptrend over the medium to long term. The stock is, however, trading below its 5-day moving average, indicating some short-term consolidation or profit-taking. Delivery volumes have fallen by 27.17% compared to the five-day average, suggesting reduced investor participation in the cash segment despite the options market activity.

Fundamental Strength and Market Position

ONGC’s market capitalisation stands at a substantial ₹3,50,864 crores, categorising it as a large-cap stock within the oil sector. The company boasts a high dividend yield of 4.94%, which remains attractive to income-focused investors amid volatile markets. Its recent upgrade in the Mojo Grade from Hold to Buy on 2 March 2026, with a Mojo Score of 75.0, reflects improved fundamentals and positive outlook from analysts.

Expiry Patterns and Investor Sentiment

The concentration of call option activity at strikes ₹280 to ₹300 for the 30 March expiry suggests that traders are positioning for a potential price appreciation of approximately 3.5% to 8.3% from the current level within the next three weeks. The open interest figures corroborate this view, with the highest interest at ₹300 strike, indicating a consensus expectation that ONGC could breach this level before expiry.

Such positioning is often indicative of bullish sentiment, as investors seek leveraged exposure to anticipated upside moves. The sizeable turnover in these call options, totalling over ₹2,546 lakhs across the three strikes, underscores the liquidity and active participation in ONGC’s options market.

Comparative Sector and Market Context

Within the oil sector, ONGC’s relative outperformance on a day when the sector declined by 1.21% and the Sensex by 2.88% is a positive signal. It suggests that investors view ONGC as a defensive or value stock amid broader market volatility. The company’s large-cap status and stable dividend yield further enhance its appeal as a core portfolio holding.

However, the dip in delivery volumes and the slight negative price movement caution that short-term profit-taking or uncertainty remains. Investors should monitor whether the stock can sustain its technical support levels and translate the bullish options positioning into actual price gains.

Investor Takeaway and Outlook

For investors, the current surge in call option activity on ONGC ahead of the March expiry offers a clear signal of bullish expectations. The strike prices chosen by traders reflect confidence in the stock’s ability to rally beyond ₹280 and potentially test ₹300 within weeks. This is supported by the company’s strong fundamentals, attractive dividend yield, and technical positioning above key moving averages.

Nonetheless, the slight decline in the stock price and reduced delivery volumes suggest that caution is warranted. Market participants should watch for confirmation of upward momentum in the cash market to validate the optimism seen in the options segment. Given ONGC’s large-cap status and sector leadership, it remains a compelling candidate for investors seeking exposure to India’s oil sector growth, especially with the recent upgrade to a Buy rating by MarketsMOJO.

Overall, the interplay between options market activity and underlying stock performance provides valuable insight into market sentiment and potential price trajectories for ONGC in the near term.

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