ONGC Sees Robust Call Option Activity Amid Sustained Bullish Momentum

Robust Price Performance and Market Position

ONGC, a heavyweight in the oil industry with a market capitalisation of ₹3,46,297.35 crores, has been on a strong upward trajectory. The stock hit a new 52-week high of ₹273.39 on 29 Jan 2026, reflecting a 1.08% gain on the day and outperforming the oil sector by 1.24%. Over the past six consecutive trading sessions, ONGC has delivered a remarkable 13.3% return, signalling sustained investor confidence.

Technical indicators further reinforce this bullish stance. ONGC is trading comfortably above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, a classic sign of upward momentum. Additionally, the delivery volume on 28 Jan surged to 3.63 crore shares, a staggering 499.49% increase compared to the five-day average, indicating rising investor participation and conviction.

Call Option Activity Highlights Bullish Positioning

The most active call options for ONGC are concentrated around the 270 strike price, with the expiry date set for 24 Feb 2026. On this date, a total of 3,941 contracts were traded, generating a turnover of ₹846.82 lakhs. Open interest stands at 1,558 contracts, signalling that traders are maintaining or building positions rather than closing them out.

Given the underlying stock price of ₹274.85, the 270 strike call options are in-the-money, which typically attracts bullish traders expecting further upside. The high volume and open interest at this strike price suggest that market participants are positioning for continued gains in ONGC over the coming weeks.

Dividend Yield and Liquidity Support Investor Appeal

ONGC’s current dividend yield of 4.65% adds to its attractiveness, offering investors a steady income stream alongside capital appreciation potential. The stock’s liquidity is also robust, with a five-day average traded value supporting trade sizes up to ₹13.03 crores comfortably, ensuring that institutional and retail investors can transact without significant price impact.

Mojo Score and Rating Revision Reflect Cautious Optimism

MarketsMOJO assigns ONGC a Mojo Score of 58.0, categorising it with a Hold grade as of 19 Jan 2026, a downgrade from its previous Buy rating. This adjustment reflects a more cautious stance amid evolving market dynamics, despite the stock’s recent outperformance. The market cap grade remains at 1, indicating its status as a large-cap stock with significant institutional interest.

Investors should weigh this rating in the context of ONGC’s strong technicals and dividend yield, balancing the potential for further gains against sector-specific risks such as crude oil price volatility and regulatory developments.

Sector and Market Context

ONGC’s 1-day return of 2.49% notably outpaces the oil sector’s marginal 0.04% gain and the broader Sensex’s decline of 0.48% on the same day. This relative strength highlights ONGC’s leadership within the sector and its ability to attract capital even when broader markets face headwinds.

With global energy demand showing signs of recovery and geopolitical factors influencing oil prices, ONGC’s positioning as a state-backed oil producer provides a strategic advantage. The company’s operational scale and dividend policy continue to appeal to a broad investor base seeking both growth and income.

Expiry Patterns and Investor Sentiment

The approaching expiry on 24 Feb 2026 is attracting significant attention, with the 270 strike call options dominating volume and open interest. This concentration suggests that traders are positioning for a potential breakout above current levels, anticipating positive catalysts such as favourable crude price movements or operational updates.

Open interest data indicates that these positions are not merely speculative but are being held with conviction, which could translate into increased volatility and volume as expiry approaches. Investors should monitor these dynamics closely, as shifts in open interest and volume can provide early signals of changing market sentiment.

Balancing Risks and Opportunities

While ONGC’s recent performance and option market activity point to bullish expectations, investors must remain mindful of inherent risks. Oil prices remain susceptible to global economic conditions, supply disruptions, and policy changes. Additionally, the downgrade to a Hold rating by MarketsMOJO suggests that valuation and near-term catalysts warrant careful scrutiny.

Nonetheless, ONGC’s strong dividend yield, liquidity, and technical momentum provide a compelling case for investors seeking exposure to the oil sector with a blend of income and growth potential.

Conclusion

In summary, Oil & Natural Gas Corporation Ltd. is currently a focal point for active call option trading, reflecting bullish investor sentiment supported by robust price action and favourable technical indicators. The concentration of call options at the 270 strike price with significant open interest ahead of the 24 Feb 2026 expiry highlights expectations of further upside. However, the recent rating downgrade and sector risks advise a balanced approach.

Investors should continue to monitor option market trends alongside fundamental developments to gauge the sustainability of ONGC’s momentum in the coming weeks.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →