Robust Call Option Trading Highlights Bullish Positioning
On 24 Feb 2026, Polycab India Ltd witnessed an impressive 5,826 call option contracts traded at the ₹8,200 strike price, generating a turnover of ₹10.98 crores. The open interest stood at 482 contracts, signalling strong investor interest in leveraged bullish bets. The underlying stock price was ₹8,096, just shy of the strike price, indicating that traders are positioning for a potential breakout above this key level.
This heightened activity in call options is notable given the stock’s recent outperformance relative to its sector and the broader market. Polycab outpaced the Cables - Electricals sector by 1.67% and the Sensex by 2.34% on the day, with a 1.83% gain recorded. The stock has delivered a 3.95% return over the last three consecutive trading days, reflecting sustained buying interest.
Technical Strength Reinforces Positive Outlook
Technically, Polycab India is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong uptrend. The rising delivery volume of 1.8 lakh shares on 23 Feb, which is 9.09% higher than the five-day average, further confirms increasing investor participation and conviction. Liquidity remains ample, with the stock capable of supporting trade sizes up to ₹4.79 crores based on 2% of the five-day average traded value.
Market participants are closely watching the ₹8,200 strike price expiry today, as a sustained close above this level could trigger further upside momentum. The large number of call contracts traded at this strike suggests that traders are anticipating a bullish breakout, potentially driving the stock towards new highs.
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Fundamental and Market Context Supporting the Bullish Case
Polycab India Ltd, a leading player in the Cables - Electricals industry, boasts a substantial market capitalisation of ₹1,21,061 crores, categorising it as a large-cap stock. The company’s recent upgrade in its Mojo Grade from Hold to Buy on 21 Jul 2025, with a strong Mojo Score of 78.0, reflects improved fundamentals and positive market sentiment. This upgrade signals enhanced earnings prospects and operational efficiencies that have caught the attention of institutional and retail investors alike.
Despite the broader market’s subdued performance, with the Sensex declining 0.82% and the sector down 0.28% on the day, Polycab’s resilience and outperformance highlight its defensive qualities and growth potential. The stock’s ability to maintain gains amid sectoral weakness is a testament to its robust business model and investor confidence.
Expiry Patterns and Investor Sentiment
The expiry of call options at the ₹8,200 strike price today is a critical juncture for Polycab India. The substantial open interest and turnover at this strike indicate that traders are positioning for a decisive move. If the stock closes above this level, it could trigger a short squeeze and attract fresh buying, potentially pushing prices towards the next resistance levels around ₹8,300 and beyond.
Conversely, failure to breach this strike price convincingly may lead to profit booking and a short-term consolidation phase. However, the overall technical and fundamental backdrop remains supportive of a bullish trajectory in the medium term.
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Implications for Investors and Traders
For investors, Polycab India Ltd’s strong fundamentals combined with bullish technical signals make it an attractive buy candidate. The recent upgrade to a Buy rating and the stock’s ability to outperform its sector and the broader market provide confidence in its growth trajectory. Investors should monitor the stock’s price action around the ₹8,200 strike price expiry closely, as a breakout could offer a favourable entry point for medium to long-term holdings.
Traders, meanwhile, can capitalise on the elevated call option activity by considering strategies that benefit from upward price movements, such as buying calls or executing bull call spreads. The liquidity and volume in both the underlying stock and its options market support active trading without significant slippage.
However, prudent risk management remains essential given the potential for volatility around expiry dates. Investors should also keep an eye on broader market conditions and sectoral trends that could influence price dynamics.
Outlook and Conclusion
Polycab India Ltd’s recent price action and options market activity reflect a strong bullish consensus among market participants. The stock’s technical strength, combined with improved fundamental ratings and robust investor participation, positions it well for further gains in the near term. The expiry of call options at the ₹8,200 strike price today will be a key event to watch, potentially setting the tone for the stock’s trajectory in the coming weeks.
Given the company’s leadership in the cables sector and its large-cap status, Polycab remains a compelling stock for investors seeking exposure to India’s infrastructure and electrical goods growth story. Continued monitoring of option market trends alongside fundamental developments will be crucial for making informed investment decisions.
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