Call Option Activity Highlights
Data from the latest trading session reveals that Reliance Industries Ltd witnessed heavy call option trading concentrated around strike prices ranging from ₹1,530 to ₹1,620. The most actively traded call options include the ₹1,530 strike with 9,532 contracts and a turnover of ₹1462.69 lakhs, closely followed by the ₹1,540 strike with 9,630 contracts and ₹1239.86 lakhs turnover. Notably, the ₹1,570 strike saw 8,919 contracts traded, generating ₹591.78 lakhs in turnover, while the ₹1,620 strike attracted 8,602 contracts with ₹163.01 lakhs turnover.
The open interest figures further underscore the concentration of bullish positioning at the ₹1,620 strike, which holds an open interest of 9,854 contracts, the highest among the strikes analysed. This suggests that traders are positioning for a potential upward move beyond the current underlying value of ₹1,525.60.
Expiry Patterns and Market Implications
All these call options are set to expire on 27 January 2026, indicating that market participants are focusing on near-term price movements. The clustering of open interest and volume around strikes slightly above the current market price points to a strategic anticipation of a rebound or rally in Reliance’s shares within the next three weeks.
However, the stock’s recent performance has been subdued. Reliance’s share price has declined by 3.12% in the last trading day, underperforming the oil sector’s 2.16% fall and the broader Sensex’s marginal 0.20% dip. The stock has also recorded a consecutive two-day decline, losing 3.78% over this period, with an intraday low touching ₹1,517.80, down 3.82% from previous levels.
Technical and Sectoral Context
Technically, Reliance’s price remains above its 50-day, 100-day, and 200-day moving averages, signalling underlying long-term strength. However, it currently trades below its 5-day and 20-day moving averages, reflecting short-term weakness. This mixed technical picture aligns with the cautious optimism seen in the options market, where traders are hedging bets on a potential recovery while acknowledging near-term volatility.
The oil exploration and refinery sector, to which Reliance belongs, has experienced a 2.22% decline, adding pressure on the stock. Yet, rising investor participation is evident, with delivery volumes on 5 January surging by 62.95% to 61.27 lakh shares compared to the five-day average. This heightened activity suggests that institutional and retail investors are actively repositioning ahead of the expiry.
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Mojo Score Upgrade and Market Capitalisation
Reliance Industries Ltd currently holds a Mojo Score of 70.0, categorised as a Buy, an upgrade from its previous Hold rating on 3 November 2025. This improvement reflects enhanced confidence in the company’s fundamentals and growth prospects. The stock’s market capitalisation stands at a commanding ₹20,68,843.85 crore, underscoring its status as a large-cap heavyweight within the oil sector.
Despite the recent price softness, the upgraded Mojo Grade suggests that the stock is favourably positioned for medium to long-term investors, supported by robust financial metrics and strategic business initiatives.
Liquidity and Trading Dynamics
Liquidity remains strong for Reliance, with the stock’s traded value comfortably supporting trade sizes up to ₹24.36 crore based on 2% of the five-day average traded value. This ensures that both institutional and retail investors can execute sizeable trades without significant market impact.
The weighted average price during the recent session was closer to the day’s low, indicating that sellers dominated the session, yet the active call option volumes suggest that buyers are preparing for a turnaround.
Investor Sentiment and Strategic Positioning
The concentration of call option interest at strikes above the current market price reveals a predominantly bullish sentiment among derivatives traders. The ₹1,620 strike, in particular, with its high open interest, signals expectations of a price recovery to at least that level by expiry.
Meanwhile, the sizeable turnover at the ₹1,530 and ₹1,540 strikes indicates active hedging and speculative activity, with market participants balancing risk and reward amid sectoral headwinds and broader market uncertainties.
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Outlook and Conclusion
Reliance Industries Ltd’s recent call option activity paints a picture of cautious optimism amid a challenging market backdrop. While the stock has underperformed in the short term, the derivatives market’s positioning suggests that investors are anticipating a rebound, potentially driven by favourable sectoral developments or company-specific catalysts.
Investors should monitor the evolving open interest and volume trends closely, especially as the 27 January expiry approaches, to gauge the sustainability of this bullish sentiment. The upgraded Mojo Grade and strong market capitalisation provide additional confidence for those considering exposure to this oil sector giant.
Given the mixed technical signals and sectoral pressures, a balanced approach combining fundamental analysis with options market insights will be crucial for making informed investment decisions in Reliance Industries Ltd.
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