ONGC Sees Robust Call Option Activity as Shares Hit New 52-Week High

Robust Call Option Activity Highlights Investor Optimism

Data from the derivatives market reveals that the most actively traded call options for ONGC are concentrated at the ₹280 strike price, expiring on 24 February 2026. A total of 7,166 contracts changed hands, generating a turnover of approximately ₹873.89 lakhs. Open interest at this strike stands at 6,272 contracts, underscoring sustained investor interest in this price level.

The underlying stock price currently trades at ₹276.7, just shy of the ₹280 strike, indicating that traders are positioning for a potential upside move in the near term. The elevated open interest combined with high trading volumes suggests that market participants are increasingly confident in ONGC’s ability to breach this resistance level before expiry.

Price Momentum and Technical Strength

ONGC’s recent price action has been impressive, with the stock gaining 3.56% over the past three consecutive trading sessions. On 12 February 2026, it outperformed the oil sector by 0.73% and the Sensex by a significant margin, registering a day’s high of ₹280.3, a 2.08% intraday gain. The stock is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong uptrend and technical resilience.

Investor participation has also risen sharply, with delivery volumes on 11 February reaching 1.01 crore shares, a 22.75% increase compared to the five-day average. This heightened activity reflects growing conviction among long-term investors, further bolstering the bullish case.

Fundamental and Market Context

ONGC operates within the oil industry and is classified as a large-cap stock with a market capitalisation of ₹3,45,454 crores. The company’s Mojo Score stands at 71.0, reflecting a strong buy recommendation, an upgrade from a previous hold rating as of 5 February 2026. This upgrade was driven by improved fundamentals and positive earnings outlooks, which have been well received by the market.

Despite the broader market’s subdued performance, with the Sensex down 0.45% and the oil sector declining 0.15% on the day, ONGC’s resilience and outperformance highlight its defensive qualities and sector leadership. The stock’s liquidity is robust, with an average traded value sufficient to support trade sizes of up to ₹7.57 crores, making it accessible for institutional and retail investors alike.

Expiry Patterns and Strike Price Significance

The concentration of call option activity at the ₹280 strike price is particularly noteworthy. This level represents a psychological and technical resistance point, recently tested as the stock reached its 52-week high. The expiry date of 24 February 2026 is just under two weeks away, suggesting that traders are positioning for a near-term breakout or sustained rally.

Open interest data indicates that many investors are holding onto their bullish bets, with the potential for a short squeeze or accelerated buying if the stock surpasses this strike price. The combination of rising open interest and high turnover in call options typically signals strong conviction in upward price movement.

Risks and Considerations

While the bullish indicators are compelling, investors should remain mindful of potential volatility around expiry dates and broader macroeconomic factors affecting the oil sector, such as crude oil price fluctuations, geopolitical tensions, and regulatory changes. Additionally, the stock’s recent gains may invite profit-taking, which could temper short-term momentum.

Nonetheless, the technical and fundamental backdrop, combined with the active call option positioning, suggests that ONGC remains a favoured pick among market participants anticipating further upside.

Outlook and Investor Takeaways

Given the current market dynamics, ONGC’s strong call option activity and technical momentum position it well for potential gains in the near term. The stock’s ability to sustain above key moving averages and the recent upgrade to a buy rating by MarketsMOJO reinforce its appeal as a large-cap oil sector leader.

Investors looking to capitalise on this momentum should monitor the ₹280 strike price closely, as a decisive break above this level could trigger further buying interest and price appreciation. However, prudent risk management remains essential given the inherent volatility in commodity-linked stocks.

Overall, ONGC’s blend of fundamental strength, technical resilience, and active derivatives market interest makes it a compelling candidate for bullish positioning in the current market environment.

Unlock special upgrade rates for a limited period. Start Saving Now →