Reliance Industries Sees Heavy Call Option Activity Amid Bearish Price Momentum

Call Option Activity Highlights

On 29 January 2026, Reliance Industries Ltd (NSE: RELIANCE) recorded the most active call options at the 1400 strike price expiring on 24 February 2026. A total of 8,166 contracts were traded, generating a turnover of ₹1358.82 lakhs. Open interest at this strike stands at 8,840 contracts, indicating sustained interest and positioning by market participants. The underlying stock price closed at ₹1392.10, just shy of the strike price, suggesting that traders are anticipating a potential rally above this level in the near term.

Price and Technical Performance

Despite the bullish positioning in the options market, Reliance Industries’ stock price has been under pressure. The stock underperformed its sector by 0.58% on the day, closing with a 0.32% decline, while the oil sector gained 0.14% and the Sensex fell 0.27%. Notably, Reliance is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish trend across multiple timeframes. This technical weakness is compounded by falling investor participation, with delivery volumes on 28 January dropping 28.1% to 68.9 lakh shares compared to the five-day average, reflecting reduced conviction among shareholders.

Market Capitalisation and Quality Assessment

Reliance Industries remains a large-cap heavyweight with a market capitalisation of ₹18,82,502 crores. However, its recent Mojo Score of 62.0 and a Mojo Grade of Hold, downgraded from Buy on 6 January 2026, reflect a cautious stance from analysts. The downgrade was driven by deteriorating price momentum and weakening technical indicators, despite the company’s robust fundamentals and dominant industry position. The market cap grade remains at 1, underscoring its status as a large-cap stock but signalling limited near-term upside from a valuation perspective.

Investor Sentiment and Expiry Dynamics

The concentration of call option activity at the 1400 strike price, close to the current market price, suggests that traders are positioning for a breakout above this level before the February expiry. The open interest of 8,840 contracts at this strike is significant, indicating that many investors are either buying calls to benefit from a potential rally or writing calls to collect premium amid uncertainty. The high turnover of ₹1358.82 lakhs further confirms active trading interest and liquidity in this options segment.

However, the underlying stock’s technical weakness and declining delivery volumes imply that the bullish sentiment in the options market may be speculative or hedging-driven rather than a broad-based conviction. The divergence between options positioning and spot price performance is a key factor for investors to monitor, as it may signal volatility or a potential reversal if the stock fails to breach the 1400 level.

Liquidity and Trading Viability

Reliance Industries continues to offer sufficient liquidity for sizeable trades, with the stock’s traded value supporting a trade size of approximately ₹47.91 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional and retail investors can execute large orders without significant market impact, which is crucial given the stock’s prominence in the oil sector and its influence on broader market indices.

Outlook and Strategic Considerations

While the heavy call option activity at the 1400 strike price signals a degree of bullish positioning, the overall technical and volume indicators for Reliance Industries suggest caution. Investors should weigh the potential for a short-term rebound against the prevailing downtrend and reduced investor participation. The stock’s downgrade to a Hold rating by MarketsMOJO reflects this balanced view, acknowledging the company’s strong fundamentals but highlighting near-term risks.

For traders, the options market presents opportunities to capitalise on volatility and directional bets, but the divergence between options optimism and spot price weakness warrants careful risk management. Monitoring open interest changes and expiry-day price action will be critical to gauge whether the bullish call option positioning translates into sustained price gains or if it represents speculative hedging ahead of earnings or sector developments.

Sector and Market Context

Reliance Industries operates within the oil sector, which has shown mixed performance recently. The sector’s modest gain of 0.14% contrasts with Reliance’s underperformance, underscoring company-specific challenges or profit-taking pressures. Given the stock’s large-cap status and significant weight in the Sensex, its price movements have broader market implications. The Sensex’s 0.27% decline on the same day further emphasises the cautious market environment.

Investors should also consider macroeconomic factors such as crude oil price fluctuations, regulatory changes, and global energy demand trends, which can materially impact Reliance’s earnings and stock performance. The interplay between these external factors and internal company dynamics will shape the stock’s trajectory in the coming weeks.

Conclusion

Reliance Industries Ltd’s recent surge in call option activity at the 1400 strike price ahead of the 24 February 2026 expiry highlights a nuanced market outlook. While options traders are positioning for potential upside, the underlying stock’s technical weakness and declining investor participation counsel prudence. The Hold rating and Mojo Score of 62.0 reflect this balanced perspective, suggesting that investors should closely monitor price action and volume trends before committing to new positions.

Given the stock’s liquidity and large-cap stature, Reliance remains a key focus for market participants, but superior opportunities may exist elsewhere in the oil sector or broader market, as identified by comprehensive evaluations from analytical platforms.

Unlock special upgrade rates for a limited period. Start Saving Now →