Reliance Industries Sees Heavy Call Option Activity Ahead of January Expiry

Robust Call Option Trading Highlights Investor Optimism

On 21 January 2026, Reliance Industries witnessed a remarkable spike in call option activity, with 12,818 contracts traded at the 1420 strike price expiring on 27 January. This volume translated into a turnover of ₹6.33 crores, reflecting significant investor interest in bullish positioning. The open interest for these contracts stands at 8,372, indicating sustained commitment from market participants ahead of expiry.

The underlying stock price at ₹1414.7 is just shy of the strike price, suggesting that traders are positioning for a breakout above this level within the coming week. This is particularly notable given the stock’s recent performance, which has seen a 0.77% gain on the day, slightly underperforming the broader Sensex’s 0.96% rise and the Oil sector’s 0.92% advance.

Technical Landscape and Price Action

Reliance Industries has been trading in a relatively narrow range of ₹12.7 over the past session, reflecting some consolidation after a two-day consecutive gain that yielded a 1.72% return. However, the stock remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling that the short- to long-term technical momentum is still subdued.

Despite this, rising investor participation is evident from the delivery volume of 85.68 lakh shares on 21 January, which is an 8.74% increase compared to the five-day average delivery volume. This uptick in delivery volume suggests that investors are increasingly willing to hold the stock, potentially anticipating a rebound or a positive catalyst in the near term.

Market Capitalisation and Quality Assessment

Reliance Industries remains a dominant large-cap player with a market capitalisation of ₹18,99,823 crore, firmly entrenched in the Oil industry and sector. The company’s Mojo Score currently stands at 62.0, reflecting a Hold rating, a downgrade from a Buy rating issued on 6 January 2026. This adjustment indicates a more cautious stance from analysts, likely influenced by the stock’s technical challenges and sector dynamics.

The Market Cap Grade is rated 1, underscoring Reliance’s stature as a heavyweight in the market. While the downgrade to Hold suggests tempered expectations, the active call option interest reveals that traders remain optimistic about a potential upside, possibly driven by upcoming earnings, strategic announcements, or sector tailwinds.

Expiry Patterns and Strike Price Significance

The 27 January expiry is the nearest monthly options expiry, often a period of heightened volatility and positioning. The concentration of call option contracts at the 1420 strike price, which is slightly above the current underlying price, suggests that traders are betting on a short-term rally that could push Reliance above this key resistance level.

Open interest data corroborates this bullish bias, as the sizeable outstanding contracts imply that many investors are either holding onto their positions or building fresh exposure in anticipation of a favourable price movement. This activity is consistent with a strategy to capitalise on potential upside while limiting downside risk through options.

Liquidity and Trading Viability

Reliance Industries continues to demonstrate strong liquidity, with a five-day average traded value supporting trade sizes up to ₹44.83 crore comfortably. This liquidity is crucial for institutional and retail investors alike, ensuring that sizeable positions can be entered or exited without significant price impact.

The stock’s delivery volume and turnover in options further reinforce its attractiveness as a trading vehicle, especially for those looking to leverage derivatives for directional bets or hedging strategies.

Outlook and Investor Considerations

While the technical indicators currently suggest some caution, the active call option interest and rising delivery volumes point to a nuanced market view. Investors appear to be positioning for a potential rebound or positive catalyst that could drive Reliance Industries above the 1420 level before expiry.

Given the Hold rating and the downgrade from Buy earlier this month, investors should weigh the risks of a continued technical consolidation against the possibility of a short-term rally. Monitoring open interest changes and price action in the coming days will be critical to gauge the sustainability of this bullish sentiment.

Furthermore, sector dynamics in Oil, including global crude price movements and domestic policy developments, will likely influence Reliance’s trajectory. Investors should remain vigilant to these external factors while analysing the stock’s price and options market behaviour.

Summary

Reliance Industries Ltd’s prominence in call option trading ahead of the 27 January expiry highlights a strong bullish undertone despite technical challenges. The 1420 strike price has become a focal point for traders expecting a near-term upside, supported by rising delivery volumes and robust liquidity. However, the recent downgrade to Hold and the stock’s position below key moving averages counsel prudence. Investors should closely monitor evolving market signals and sector developments to make informed decisions in this large-cap oil heavyweight.

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