Reliance Industries Sees Heavy Call Option Activity Ahead of March Expiry

Call Option Activity Highlights

Data from the derivatives market reveals that Reliance’s call options expiring on 30 March 2026 have attracted significant interest across multiple strike prices, with the underlying stock currently valued at ₹1,405. The most actively traded call options are clustered around strikes close to the current market price, indicating a strategic focus on near-the-money contracts.

Specifically, the 1,400 strike call option leads in volume with 7,964 contracts traded, generating a turnover of ₹1746.5 lakhs and an open interest of 8,129 contracts. This is closely followed by the 1,460 strike call with 7,154 contracts traded and a turnover of ₹568.4 lakhs, and the 1,410 strike call with 5,604 contracts traded, turning over ₹1045.4 lakhs. Other notable strikes include 1,470 and 1,480, with 4,104 and 3,899 contracts traded respectively.

The open interest figures, particularly at the 1,400 and 1,460 strikes, suggest that traders are positioning for a potential upward move in Reliance’s share price over the coming weeks, betting on a recovery or a rally before the expiry date.

Stock Performance and Market Context

Reliance Industries has underperformed its sector by 0.27% today and has declined by 1.29% over the last two trading sessions. The stock’s 1-day return stands at -0.33%, slightly better than the Sensex’s -0.32% but lagging behind the Oil sector’s -0.45%. Despite this, the stock remains above its 5-day moving average but below its 20-day, 50-day, 100-day, and 200-day averages, indicating a mixed technical picture with short-term support but longer-term resistance.

Investor participation has also waned, with delivery volumes on 10 March falling by 54.63% compared to the 5-day average, signalling reduced conviction among long-term holders. Liquidity remains adequate, with the stock able to support trade sizes of up to ₹70.28 crores based on 2% of the 5-day average traded value.

Reliance’s mojo score currently stands at 47.0, reflecting a ‘Sell’ grade as of 25 February 2026, down from a previous ‘Hold’. The downgrade reflects concerns over valuation and near-term earnings momentum, despite the company’s dominant position in the oil sector and its large market capitalisation of ₹19,06,793 crores.

Implications of Heavy Call Option Trading

The concentration of call option volumes near the current stock price suggests that traders are anticipating a rebound or at least a stabilisation in Reliance’s share price by the end of March. The high open interest at the 1,400 strike, which is just below the current market price, indicates that many investors are hedging or speculating on a move above this level.

Meanwhile, the substantial activity at the 1,460 and 1,470 strikes points to expectations of a moderate upside potential of around 4-5% from current levels. This is consistent with a cautious bullish sentiment, where traders are willing to pay premiums for call options that could benefit from a rally but are mindful of the stock’s recent weakness and sector headwinds.

From a risk perspective, the open interest data also highlights potential resistance zones, as option writers may look to defend these strike prices, creating a complex interplay between buyers and sellers in the derivatives market.

Sector and Broader Market Considerations

Reliance operates within the oil sector, which has faced volatility due to fluctuating crude prices and geopolitical uncertainties. The sector’s 1-day return of -0.45% today reflects these pressures. However, Reliance’s diversified business model, including refining, petrochemicals, and retail, provides some buffer against pure commodity price swings.

Investors should also consider the broader market environment, with the Sensex down 0.32% today, indicating cautious sentiment across large-cap stocks. Reliance’s downgrade to a ‘Sell’ mojo grade underscores the need for careful stock selection and monitoring of fundamental developments.

Investor Takeaway

For investors and traders, the surge in call option volumes on Reliance Industries ahead of the 30 March expiry offers valuable insight into market expectations. The data suggests a guarded optimism with a focus on strike prices between ₹1,400 and ₹1,480, reflecting a potential upside of up to 5% from current levels.

However, the downgrade to a ‘Sell’ mojo grade and the recent price underperformance caution against overexuberance. Investors should weigh the derivatives market signals alongside fundamental factors such as earnings outlook, sector dynamics, and broader market trends before making allocation decisions.

Given the stock’s liquidity and active options market, sophisticated investors may consider strategies that capitalise on the current volatility and strike price concentrations, such as spreads or hedged positions, to manage risk effectively.

Conclusion

Reliance Industries Ltd remains a key bellwether in the oil sector, with its derivatives market activity providing a window into investor sentiment. The heavy call option trading at near-the-money strikes ahead of the March expiry indicates a cautiously bullish stance, tempered by recent price weakness and a downgrade in mojo rating. Market participants should continue to monitor open interest trends and price action closely as expiry approaches to gauge the evolving outlook for this large-cap heavyweight.

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