Strong Call Option Turnover Signals Investor Interest
On 19 December 2025, Polycab India recorded the most active call options with the December 30 expiry contracts at a strike price of ₹7,300. A total of 9,026 contracts exchanged hands, generating a turnover of approximately ₹1337.43 lakhs. The open interest stood at 1,247 contracts, indicating sustained positions held by market participants. This level of activity highlights a concentrated bullish sentiment, as traders position themselves for potential upside in the underlying stock.
Underlying Stock Performance Supports Positive Outlook
The underlying value of Polycab India on the day was ₹7,262.50, with the stock touching an intraday high of ₹7,333, representing a 3.3% rise within the session. The stock outperformed its sector by 1.49% and the broader Sensex by 1.79%, with a daily return of 2.40% compared to the sector’s 0.89% and Sensex’s 0.61%. This outperformance over multiple benchmarks suggests that investor confidence in Polycab India remains robust.
Price Trends and Moving Averages Indicate Mixed Momentum
Polycab India’s price currently trades above its 5-day and 200-day moving averages, signalling short-term and long-term support levels. However, it remains below the 20-day, 50-day, and 100-day moving averages, which may indicate some resistance in the medium term. This mixed technical picture suggests that while immediate momentum is positive, investors are closely watching for confirmation of sustained upward trends.
Investor Participation and Liquidity Considerations
Delivery volume on 18 December was recorded at 1 lakh shares, which is 67.67% lower than the five-day average delivery volume. This decline in investor participation could reflect cautious trading behaviour despite the bullish option activity. Nevertheless, the stock’s liquidity remains adequate, with a trade size capacity of approximately ₹7.84 crores based on 2% of the five-day average traded value, allowing for efficient execution of sizeable trades.
Just made the cut! This Mid Cap from the Heavy Electrical Equipment sector entered our elite Top 1% list recently. Discover it before the crowd catches on!
- - Top-rated across platform
- - Strong price momentum
- - Near-term growth potential
Sector and Market Capitalisation Context
Polycab India operates within the Cables - Electricals industry, a sector that has shown steady demand driven by infrastructure development and industrial growth. The company’s market capitalisation stands at ₹1,09,591 crores, placing it firmly in the mid-cap category. This sizeable market cap reflects its established position and investor interest relative to peers in the electrical cables segment.
Expiry Patterns and Strike Price Concentration
The concentration of call option contracts at the ₹7,300 strike price for the 30 December expiry suggests that traders are anticipating the stock to maintain or exceed this level in the near term. The expiry date is less than two weeks away, which often intensifies option market activity as investors adjust positions based on evolving price expectations. The substantial open interest at this strike price further confirms that this level is a key focus for market participants.
Consecutive Gains and Short-Term Returns
Polycab India has recorded gains over the last two consecutive trading sessions, accumulating a return of 2.65% during this period. This short-term positive performance aligns with the bullish positioning observed in the options market. The stock’s ability to sustain these gains will be critical in determining whether the current momentum can extend beyond the immediate expiry horizon.
Balancing Momentum with Caution
While the call option activity and recent price performance indicate optimism, the decline in delivery volume suggests some investors may be exercising caution. This divergence between derivatives market enthusiasm and spot market participation is not uncommon, especially in mid-cap stocks where liquidity and volatility can fluctuate. Investors should consider both technical signals and broader market conditions when evaluating Polycab India’s near-term prospects.
Curious about Polycab India from Cables - Electricals? Get the complete picture with our detailed research report covering fundamentals, technicals, peer analysis, and everything you need to decide!
- - Detailed research coverage
- - Technical + fundamental view
- - Decision-ready insights
Outlook for Investors and Market Participants
Given the current data, Polycab India remains a stock to watch closely in the coming weeks. The active call option trading at a strike price near the current market level points to expectations of stability or moderate appreciation. Investors should monitor price action relative to key moving averages and delivery volumes to gauge the sustainability of the recent gains.
Additionally, the stock’s liquidity profile supports the execution of larger trades without significant price impact, which is favourable for institutional investors and traders alike. The interplay between derivatives positioning and spot market behaviour will likely shape Polycab India’s trajectory as the December expiry approaches.
Summary
Polycab India’s recent market activity reveals a nuanced picture of investor sentiment. The robust call option turnover and open interest at the ₹7,300 strike price for the 30 December expiry underline a bullish outlook among derivatives traders. Meanwhile, the stock’s outperformance relative to sector and benchmark indices, combined with its positioning above key moving averages, supports this positive stance. However, the decline in delivery volumes suggests some caution among spot market participants. Overall, Polycab India’s market dynamics reflect a blend of optimism and prudence as it navigates near-term price levels.
Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Start Saving Now →
