Robust Call Option Activity Highlights Investor Confidence
On 24 February 2026, POWERGRID’s call options with a strike price of ₹310 and expiry on 30 March 2026 emerged as the most actively traded contracts. A total of 4,215 contracts exchanged hands, generating a turnover of ₹7.64 crores. The open interest stood at 1,926 contracts, indicating sustained investor interest and potential accumulation ahead of expiry.
The underlying stock closed at ₹308.65, just ₹1.35 below the ₹310 strike, making these call options particularly attractive for traders anticipating a near-term price rally. The proximity of the strike price to the current market value suggests that market participants are positioning for a breakout above this level within the next five weeks.
Price Momentum Supports Bullish Positioning
POWERGRID’s stock price has been on a steady ascent, gaining 5.26% over the past four consecutive trading sessions. On 24 February, the stock touched an intraday high of ₹311.70, marking a 2.26% increase for the day and outperforming the broader power sector by 1.21%. This outperformance is notable given the sector’s 0.55% gain and the Sensex’s 0.57% rise on the same day.
Technical indicators further reinforce the bullish narrative. The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a strong upward trend across multiple timeframes. Additionally, delivery volumes surged to 88.43 lakh shares on 24 February, a 35.22% increase over the five-day average, reflecting rising investor participation and conviction.
Market Capitalisation and Quality Metrics
With a market capitalisation of ₹2,87,295.65 crores, Power Grid Corporation is firmly established as a large-cap stock within the power sector. Its Mojo Score currently stands at 51.0, with a Mojo Grade upgraded from Sell to Hold on 24 February 2026, indicating an improvement in the company’s fundamental and technical outlook. However, the Market Cap Grade remains at 1, suggesting limited upside from a size perspective relative to peers.
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Expiry Patterns and Strike Price Significance
The concentration of call option activity at the ₹310 strike price for the 30 March 2026 expiry is telling. This strike is just above the current market price, suggesting traders expect the stock to breach this level within the next month. The open interest of 1,926 contracts at this strike is significant, as it represents a sizeable pool of investors with a vested interest in the stock’s near-term upside.
Options expiry dates often act as catalysts for price movements, as traders adjust or close positions. The March expiry is the next major event on the calendar, and the heavy call option volume indicates a strong bullish bias heading into this period.
Comparative Sector and Market Performance
POWERGRID’s recent gains have outpaced both the power sector and the broader market benchmarks. While the sector rose 0.55% and the Sensex gained 0.57% on 24 February, POWERGRID delivered a 1.35% return, underscoring its relative strength. This outperformance is supported by improving fundamentals and positive technical signals, which have contributed to the upgrade in its Mojo Grade from Sell to Hold.
Despite this, the stock remains 3.82% shy of its 52-week high of ₹322, suggesting there is room for further appreciation if momentum sustains. The rising delivery volumes and consistent gains over the past four days reinforce the bullish case for investors seeking exposure to the power transmission sector.
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Investor Takeaway and Outlook
The surge in call option activity at near-the-money strikes, combined with the stock’s technical strength and improving fundamental grades, paints a cautiously optimistic picture for Power Grid Corporation. Investors appear to be positioning for a breakout above ₹310 in the coming weeks, supported by strong delivery volumes and consistent price gains.
However, the Mojo Grade of Hold suggests that while the stock has improved from a Sell rating, it may not yet be a definitive buy. Market participants should weigh the potential upside against sector dynamics and broader market conditions. The stock’s large-cap status and stable business model in the power transmission sector provide a solid foundation, but investors should remain vigilant for any shifts in regulatory or macroeconomic factors that could impact performance.
Overall, the current option market activity offers valuable insight into investor sentiment, signalling a tilt towards bullishness but with measured caution. Traders and long-term investors alike would benefit from monitoring the upcoming expiry and price action around the ₹310 strike to gauge the sustainability of this momentum.
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