Robust Call Option Volumes Signal Bullish Positioning
On 8 September 2026, Reliance Industries emerged as one of the most actively traded stocks in the call options segment. The strike prices of ₹1,300 and ₹1,350 attracted the highest volumes, with 9,352 and 10,531 contracts traded respectively. The turnover for the ₹1,300 strike call options was notably high at ₹1,178.82 lakhs, while the ₹1,350 strike calls accounted for ₹381.22 lakhs in turnover. Open interest figures further underscore the bullish positioning, standing at 14,356 contracts for the ₹1,300 strike and 12,129 contracts for the ₹1,350 strike.
These strike prices are strategically placed above the current underlying value of ₹1,295.20, suggesting that market participants are anticipating a potential upward move in the stock price by the expiry date. The expiry on 29 September 2026 is drawing increased attention, with traders positioning themselves to capitalise on expected volatility or directional shifts.
Technical Indicators Reflect Bearish Momentum
Despite the bullish undertones in the options market, Reliance Industries’ spot price performance paints a more cautious picture. The stock closed at ₹1,295.20, hovering just 3.51% above its 52-week low of ₹1,249.80. It has been on a downward trajectory for the past two sessions, shedding 2.02% cumulatively. The price action has been confined within a narrow range of ₹0.80, indicating subdued volatility in the cash market.
Moreover, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish pressure. Investor participation has also waned, with delivery volumes on 7 September falling sharply by 41.35% compared to the five-day average, suggesting reduced conviction among long-term holders.
Mojo Score Downgrade Highlights Growing Concerns
Adding to the cautious sentiment, Reliance Industries’ Mojo Score was downgraded from Hold to Sell on 11 May 2026, with the current score standing at 47.0. This downgrade reflects deteriorating fundamentals or technical outlooks as assessed by MarketsMOJO’s proprietary grading system. The company remains a large-cap heavyweight in the oil sector, with a market capitalisation of ₹17,62,004 crores, but the downgrade signals that investors should exercise prudence.
Sector and Market Context
Reliance’s 1-day return of -1.18% slightly underperformed the oil sector’s decline of -1.09% and the broader Sensex’s modest fall of -0.45%. This relative underperformance may be contributing to the cautious stance among investors and option traders alike. The stock’s liquidity remains adequate, with a 2% threshold of the five-day average traded value supporting trade sizes up to ₹32.67 crores, ensuring that market participants can enter and exit positions without significant price impact.
Expiry Dynamics and Investor Implications
The concentration of call option activity at the ₹1,300 and ₹1,350 strikes ahead of the 29 September expiry suggests that traders are positioning for a potential rebound or at least a stabilisation above these levels. However, the current technical weakness and falling investor participation caution against overly optimistic expectations.
Investors should closely monitor the stock’s price action in the coming weeks, particularly its ability to reclaim key moving averages and sustain higher delivery volumes. The interplay between the options market’s bullish bets and the underlying stock’s bearish momentum creates a complex risk-reward scenario that demands careful analysis.
Outlook
While the heavy call option volumes indicate some degree of bullish speculation, the overall market signals for Reliance Industries remain mixed to negative. The downgrade in Mojo Grade to Sell and the stock’s proximity to its 52-week low highlight underlying vulnerabilities. Investors and traders should weigh these factors carefully, considering both the potential for a technical rebound and the risks posed by ongoing downward pressure.
In summary, Reliance Industries is at a critical juncture where option market optimism contrasts with spot market caution. The expiry on 29 September 2026 will be a key event to watch, as it may set the tone for the stock’s near-term trajectory in the oil sector.
