Strong Call Option Volumes Highlight Investor Optimism
Data from the derivatives market reveals that ONGC’s call options have been among the most actively traded contracts on 28 April 2026 and the upcoming expiry on 26 May 2026. The call option with a strike price of ₹290 expiring on 28 April saw 4,113 contracts traded, generating a turnover of ₹83.29 lakhs and maintaining an open interest of 3,429 contracts. This strike price is closely aligned with the current underlying stock price of ₹291.80, indicating active positioning near the money.
More notably, the call option expiring on 26 May with a strike price of ₹300 recorded even higher activity, with 4,938 contracts traded and a turnover exceeding ₹664.4 lakhs. The open interest for this contract stands at 2,998, underscoring sustained investor interest in this slightly out-of-the-money strike. The volume and open interest data collectively suggest that traders are positioning for a potential rally beyond ₹300 in the medium term.
Stock Performance and Technical Indicators Support Bullish Outlook
ONGC’s recent price action corroborates the bullish positioning seen in the options market. The stock closed just 0.9% shy of its 52-week high of ₹293, demonstrating resilience and strength. It has outperformed the oil sector by 1.37% on the day, with a 1.68% gain compared to the sector’s 0.42% and the Sensex’s modest 0.12% rise. The stock has also recorded consecutive gains over the past two sessions, delivering a cumulative return of 1.97% during this period.
From a technical standpoint, ONGC is trading above all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment of short- and long-term moving averages typically signals a strong uptrend and supports the positive sentiment reflected in the options market.
Fundamental Strength and Market Positioning
ONGC’s fundamentals continue to underpin investor confidence. The company boasts a large-cap market capitalisation of ₹3,59,607 crores and offers a high dividend yield of 4.82%, making it attractive for both growth and income investors. Despite a recent decline in delivery volume by 27.17% against the five-day average, the stock remains sufficiently liquid, with a trade size capacity of approximately ₹6.68 crores based on 2% of the five-day average traded value.
MarketsMOJO’s latest assessment upgraded ONGC’s Mojo Grade from Hold to Buy on 19 March 2026, assigning a robust Mojo Score of 75.0. This upgrade reflects improved financial metrics, trend assessments, and quality grades, reinforcing the stock’s appeal in the oil sector.
Expiry Patterns and Strike Price Analysis
The concentration of call option activity at the ₹290 and ₹300 strike prices for April and May expiries respectively suggests that market participants are anticipating a breakout above these levels. The April 28 expiry call options at ₹290 are near-the-money, indicating short-term bullish bets, while the May 26 expiry calls at ₹300 reflect a more medium-term optimistic outlook.
Open interest levels remain elevated for both strikes, which often precedes increased volatility and potential price movement in the underlying stock. The substantial turnover in these contracts also points to active hedging and speculative strategies, with traders likely expecting ONGC to sustain its upward momentum amid favourable oil price dynamics and sectoral tailwinds.
Balancing Risks and Rewards
While the bullish call option activity and technical indicators paint a positive picture, investors should remain mindful of potential risks. The oil sector is subject to geopolitical uncertainties, regulatory changes, and commodity price fluctuations that could impact ONGC’s performance. Additionally, the recent dip in delivery volumes may signal some caution among long-term holders.
Nevertheless, the combination of strong fundamentals, upgraded ratings, and active call option positioning suggests that market participants are largely confident in ONGC’s near-term prospects. The stock’s proximity to its 52-week high and sustained momentum across multiple timeframes provide a solid foundation for further gains.
Conclusion: ONGC Positioned for Potential Upside
In summary, the surge in call option trading activity for ONGC, particularly at the ₹290 and ₹300 strike prices with April and May expiries, highlights a bullish consensus among investors. Supported by strong price performance, technical strength, and an upgraded Mojo Grade, ONGC appears well-positioned to capitalise on favourable sector dynamics and deliver value to shareholders.
Market participants should continue to monitor open interest trends and price action closely, as these will provide further clues on the sustainability of the current uptrend. For now, the data points to a constructive outlook for ONGC in the coming weeks.
