Reliance Industries Sees Heavy Call Option Activity Ahead of March Expiry

Call Option Activity Highlights

Data from the options market shows that Reliance’s most active call options are clustered around strike prices ranging from ₹1,400 to ₹1,500, all expiring on 30 March 2026. The highest volume of contracts traded was at the ₹1,400 strike, with 5,589 contracts exchanged, generating a turnover of ₹1,096.56 lakhs and an open interest of 6,910 contracts. Close behind, the ₹1,420 strike saw 5,037 contracts traded with a turnover of ₹720.79 lakhs and open interest of 5,234 contracts.

Interestingly, the ₹1,500 strike price call options recorded the highest open interest at 10,269 contracts, despite a relatively lower turnover of ₹168.20 lakhs and 5,240 contracts traded. This suggests a strong speculative or hedging interest at this higher strike, indicating market participants are positioning for a potential upside beyond the current underlying price.

The ₹1,440 strike also attracted considerable attention, with 4,840 contracts traded and an open interest of 7,614, though turnover was comparatively lower at ₹477.47 lakhs. The clustering of open interest and volume around these strikes highlights a consensus expectation of upward price movement, or at least a hedge against such a scenario, in the near term.

Underlying Stock Performance and Technical Context

Despite the bullish options activity, Reliance’s stock price has shown signs of weakness. On 10 March 2026, the stock closed at ₹1,409, down 0.97% on the day, underperforming the oil sector by 0.34%. This decline followed three consecutive days of gains, signalling a possible trend reversal. The stock’s moving averages paint a mixed picture: it remains above its 5-day moving average but below the 20-day, 50-day, 100-day, and 200-day averages, indicating short-term resilience but longer-term pressure.

Investor participation has also waned, with delivery volume on 9 March falling by 6.31% compared to the five-day average, suggesting reduced conviction among shareholders. Liquidity remains adequate, with the stock’s traded value supporting sizeable trade sizes up to ₹73.2 crores, ensuring that option market activity is backed by a liquid underlying.

Mojo Score and Grade Downgrade

MarketsMOJO’s latest assessment downgraded Reliance Industries Ltd from a Hold to a Sell grade on 25 February 2026, reflecting deteriorating fundamentals or valuation concerns. The company’s Mojo Score stands at 47.0, a level that typically signals caution for investors. The market cap grade remains at 1, underscoring its status as a large-cap stock with significant market presence but limited upside potential according to the current analysis.

Investor Sentiment and Expiry Patterns

The concentration of call option activity at strike prices slightly above the current market price suggests that investors are positioning for a moderate rally in Reliance’s shares over the next three weeks. The expiry date of 30 March 2026 is less than a month away, which typically intensifies speculative activity as traders seek to capitalise on short-term price movements.

Open interest data reveals that the ₹1,500 strike price call options have the largest outstanding positions, indicating that many traders expect the stock to breach this level or are hedging against such a move. The relatively high turnover at the ₹1,400 and ₹1,420 strikes further supports the view that the near-term trading range is expected to be between ₹1,400 and ₹1,500.

However, the disparity between the stock’s recent underperformance and the bullish options positioning may reflect a divergence between short-term market sentiment and longer-term fundamental concerns highlighted by the Mojo downgrade. This divergence could lead to increased volatility as expiry approaches.

Sector and Market Context

Reliance Industries operates within the oil sector, which has experienced mixed performance recently. On the day of analysis, the sector declined by 0.91%, while the broader Sensex index gained 0.29%. This relative weakness in the oil sector may be weighing on Reliance’s stock price, despite its large market capitalisation of ₹19,27,633 crores.

Given the sector headwinds and the stock’s technical challenges, the heavy call option activity could be driven by speculative traders or hedgers rather than a broad-based bullish consensus. Investors should weigh these factors carefully when considering exposure to Reliance in the current environment.

Implications for Investors

For investors, the current scenario presents a complex picture. The heavy call option volumes and open interest at strikes above the current price indicate that some market participants are betting on a rebound or at least a stabilisation in Reliance’s share price. However, the downgrade to a Sell grade and the stock’s recent underperformance caution against overly optimistic expectations.

Investors should monitor the stock’s price action relative to key moving averages and watch for changes in delivery volumes as indicators of underlying investor conviction. The expiry on 30 March 2026 will be a critical juncture, potentially triggering increased volatility as option positions are squared off or rolled forward.

Given the stock’s large market cap and liquidity, institutional investors may use options to hedge existing positions or express directional views with limited capital outlay. Retail investors should be mindful of the risks inherent in options trading and consider the broader fundamental context before making decisions.

Conclusion

Reliance Industries Ltd’s options market activity ahead of the March expiry reveals a notable bullish tilt, with significant call option volumes and open interest clustered at strike prices above the current market level. This contrasts with the stock’s recent price weakness and a downgrade in its Mojo Grade to Sell, reflecting underlying fundamental concerns.

While the options data suggests some market participants anticipate a near-term recovery, investors should approach with caution given the mixed technical signals and sector headwinds. Close monitoring of price trends, volume patterns, and expiry dynamics will be essential to navigate the evolving landscape for this oil sector giant.

Get Started for only Rs. 16,999 - Get MojoOne for 2 Years + 1 Year Absolutely FREE! (72% Off) Start Today