Reliance Industries Sees Heavy Call Option Activity Ahead of January Expiry

Call Option Activity Highlights

On 23 January 2026, Reliance Industries Ltd emerged as the most active stock in call options trading, with 5,929 contracts exchanged at the 1410 strike price expiring on 27 January 2026. The turnover for these contracts reached ₹2.49 crores, underscoring robust investor interest. Open interest stands at 5,097 contracts, indicating sustained positions rather than purely speculative trades.

The underlying stock price was ₹1,400 at the time, placing the 1410 strike slightly out-of-the-money, which suggests traders are positioning for a modest upside in the coming days. This activity is particularly noteworthy given the stock’s recent price behaviour and technical setup.

Technical and Price Performance Context

Reliance Industries has been trading in a narrow range of ₹7.6 on the day, with a marginal decline of 0.11%, slightly underperforming the Oil sector’s 0.09% fall and flat Sensex performance. The stock has experienced a consecutive one-day fall, losing 0% returns over this brief period, signalling a pause or consolidation phase.

More concerning for bulls, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which typically indicates a bearish trend. Investor participation has also waned, with delivery volumes on 22 January falling by 12.06% compared to the five-day average, suggesting reduced conviction among long-term holders.

Liquidity remains adequate, with the stock’s traded value supporting trade sizes up to ₹48.85 crores based on 2% of the five-day average traded value, ensuring that option and stock trades can be executed without significant market impact.

Mojo Score and Rating Revision

MarketsMOJO assigns Reliance Industries a Mojo Score of 62.0, categorising it as a Hold. This represents a downgrade from a previous Buy rating issued on 6 January 2026. The downgrade reflects a reassessment of the company’s near-term growth prospects amid sectoral headwinds and technical weakness.

The company retains a Market Cap Grade of 1, confirming its status as a large-cap heavyweight with a market capitalisation of approximately ₹18,95,898.89 crores. Despite the downgrade, the stock remains a key player in the oil sector, which continues to face volatility due to fluctuating crude prices and regulatory developments.

Investor Sentiment and Option Market Interpretation

The heavy call option activity at the 1410 strike price, just above the current market price, suggests that some investors are betting on a rebound or a short-term rally before expiry. The open interest of over 5,000 contracts indicates that these are not merely speculative day trades but positions held with conviction.

However, the technical backdrop tempers this optimism. Trading below all major moving averages and declining delivery volumes point to a cautious or bearish stance among traditional equity investors. This divergence between option market bullishness and spot market weakness may reflect hedging strategies or anticipation of a catalyst, such as quarterly results or sectoral policy announcements.

Expiry Patterns and Market Implications

With the expiry date set for 27 January 2026, the coming days will be critical in determining whether the bullish call option bets materialise. If Reliance Industries manages to breach the 1410 level, it could trigger a short squeeze or renewed buying interest, potentially reversing the current downtrend.

Conversely, failure to surpass this strike price may result in these call options expiring worthless, reinforcing the bearish technical narrative. Traders and investors should monitor volume and price action closely, especially around key support and resistance levels.

Sectoral and Broader Market Context

The oil sector, in which Reliance Industries operates, has been under pressure due to global crude price fluctuations and concerns over demand growth amid economic uncertainties. The sector’s 1-day return of -0.09% aligns closely with Reliance’s marginal decline, indicating that the stock is moving broadly in tandem with sector trends.

Sensex’s flat performance on the day highlights that the weakness in Reliance and the oil sector is not reflective of a broader market sell-off but rather sector-specific dynamics. Investors should consider these macro factors when analysing Reliance’s option activity and price movements.

Outlook and Investor Takeaways

Reliance Industries Ltd’s current option market activity reveals a cautious optimism among traders, who are positioning for a potential upside despite bearish technical signals. The stock’s downgrade to Hold and its trading below all major moving averages suggest that investors should remain vigilant and consider risk management strategies.

For investors with a bullish outlook, the 1410 strike call options offer a leveraged way to benefit from a possible rebound, but the narrow trading range and declining delivery volumes warrant caution. Conversely, those bearish on the stock may view the option activity as a short-term hedge or a contrarian signal.

Ultimately, the expiry on 27 January 2026 will be a key event to watch, as it will clarify whether the bullish positioning in the options market translates into actual price gains or fizzles out amid prevailing technical weakness.

Summary

Reliance Industries Ltd is at a crossroads, with heavy call option activity signalling bullish bets at the 1410 strike price ahead of expiry, while technical indicators and recent rating downgrades suggest caution. Investors should weigh these conflicting signals carefully, considering both the company’s large-cap stature and the volatile oil sector environment.

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