Robust Call Option Activity Signals Bullish Sentiment
Data from the derivatives market reveals that the most actively traded call options on ONGC are concentrated at the Rs 280 strike price, set to expire on 24 February 2026. A total of 5,828 contracts changed hands, generating a turnover of approximately Rs 386.83 lakhs. Open interest at this strike stands at 2,133 contracts, indicating sustained interest and potential for further price movement above this level.
The underlying stock price currently trades at Rs 278.65, just shy of the strike price, suggesting that traders are positioning for a near-term upside breakout. The high volume and open interest in these call options underscore a strong bullish bias among market participants, who appear confident in ONGC’s ability to sustain its upward momentum.
Technical Strength Reinforces Positive Outlook
ONGC’s technical indicators support this optimistic stance. The stock has been on a two-day winning streak, delivering a cumulative return of 5.65% during this period. It outperformed the oil sector by 1.53% on the latest trading day, while the Sensex managed a modest 0.07% gain. Intraday, ONGC touched a high of Rs 280.8, marking a new 52-week peak.
Moreover, the stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong uptrend across multiple timeframes. This technical alignment often attracts momentum traders and institutional investors, further bolstering demand.
Investor participation has also risen sharply, with delivery volumes on 19 February reaching 1.74 crore shares, a 72.9% increase over the five-day average. This surge in delivery volume indicates genuine buying interest rather than speculative trading, which bodes well for price stability and further gains.
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Fundamental Strength Underpins Market Confidence
ONGC’s fundamental profile remains robust, supported by a large market capitalisation of Rs 3,50,612.38 crore, categorising it firmly as a large-cap stock within the oil sector. The company boasts a healthy dividend yield of 5.02% at current prices, which is attractive to income-focused investors amid volatile markets.
Its Mojo Score of 75.0 and an upgraded Mojo Grade to ‘Buy’ from ‘Hold’ as of 5 February 2026 reflect improved financial health and positive earnings momentum. This upgrade signals enhanced investor sentiment and a favourable outlook from research analysts, reinforcing the bullish narrative.
Liquidity metrics also support active trading, with the stock’s average traded value sufficient to accommodate sizeable transactions up to Rs 11.84 crore without significant price impact. This ensures that both retail and institutional investors can enter or exit positions efficiently.
Expiry Patterns and Strike Price Concentration
The concentration of call option activity at the Rs 280 strike price, just above the current market price, is a classic example of traders positioning for a breakout. The expiry date of 24 February 2026 is imminent, which often leads to heightened volatility and volume as traders adjust their positions.
Open interest data suggests that many participants are either rolling over their positions or initiating fresh bullish bets, anticipating that ONGC will close above Rs 280 by expiry. This expectation is supported by the stock’s recent technical strength and sectoral tailwinds, including stable crude oil prices and government policy support for the energy sector.
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Sectoral and Market Context
Within the oil sector, ONGC’s performance stands out. The sector recorded a modest 0.32% gain on the day, while ONGC outpaced this with a 1.53% increase. This relative strength highlights the company’s leadership position and investor preference amid a mixed energy market environment.
Global crude oil prices have stabilised recently, providing a supportive backdrop for upstream oil companies like ONGC. Additionally, government initiatives aimed at boosting domestic energy production and infrastructure investment are expected to benefit ONGC’s long-term growth prospects.
Investors should note that while the current momentum is positive, the stock’s valuation and external factors such as geopolitical risks and commodity price fluctuations remain key variables to monitor.
Strategic Implications for Investors
For investors and traders, the surge in call option activity at the Rs 280 strike price offers actionable insights. The market consensus appears to favour a near-term upside breakout, supported by strong fundamentals and technicals. Those bullish on ONGC may consider leveraging options strategies to capitalise on expected price appreciation while managing risk.
Conversely, cautious investors should remain vigilant for any signs of profit-taking or sectoral headwinds that could temper gains. Monitoring open interest changes and volume trends in the coming days will be crucial to gauge the sustainability of this rally.
Overall, ONGC’s upgraded rating, robust dividend yield, and strong market participation position it as a compelling stock within the oil sector for both growth and income-oriented portfolios.
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