Reliance Industries Sees Heavy Call Option Activity Amid Bearish Price Momentum

Call Option Surge at ₹1,400 Strike Price

On 27 February 2026, Reliance Industries Ltd emerged as the most active stock in call options trading, with 2,158 contracts exchanged for the 30 March 2026 expiry. The strike price of ₹1,400, slightly above the current underlying value of ₹1,392.90, attracted the bulk of the activity. This level represents a critical juncture for traders positioning themselves for potential upside in the coming month.

The turnover for these call options reached ₹333.63 lakhs, underscoring the substantial capital flow into bullish derivative bets. Open interest at this strike stands at 5,382 contracts, indicating a strong build-up of positions that could influence price dynamics as expiry approaches.

Stock Performance and Technical Context

Despite the robust call option activity, Reliance’s spot price has underperformed its sector and benchmark indices. The stock declined by 0.98% on the day, lagging the oil sector’s 0.65% drop and the Sensex’s 0.54% fall. Notably, Reliance is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a bearish technical setup that may temper bullish enthusiasm.

Investor participation has, however, shown signs of rising interest. Delivery volume on 26 February surged to 60.71 lakh shares, a 44.77% increase over the five-day average, suggesting that long-term investors may be accumulating shares despite short-term weakness. Liquidity remains ample, with the stock capable of supporting trade sizes up to ₹34.49 crore based on 2% of the five-day average traded value.

Mojo Score Downgrade Reflects Caution

Reliance Industries’ mojo score currently stands at 47.0, categorised as a Sell, following a downgrade from Hold on 25 February 2026. This shift reflects deteriorating fundamentals or technical signals as assessed by MarketsMOJO’s proprietary grading system. The company’s market cap remains substantial at ₹19,05,372 crore, placing it firmly in the large-cap category, but the market sentiment has turned cautious.

The downgrade is significant given Reliance’s dominant position in the oil sector and its diversified business model. Investors should weigh this rating change alongside the active call option interest, which may indicate speculative positioning or hedging strategies rather than outright bullish conviction.

Expiry Patterns and Investor Positioning

The expiry date of 30 March 2026 is less than five weeks away, a period during which option traders often adjust their positions based on evolving market conditions. The concentration of call options at ₹1,400 suggests that traders are anticipating a potential rebound or at least a stabilisation above this level. However, the underlying stock’s technical weakness and recent negative price action introduce risk to this outlook.

Open interest data reveals that while call options dominate, put option activity remains relevant, indicating a balanced spectrum of views. The net positioning could be interpreted as cautiously optimistic, with traders hedging against downside while maintaining exposure to upside gains.

Sectoral and Market Context

The oil sector itself has been under pressure due to fluctuating crude prices and global economic uncertainties. Reliance’s underperformance relative to its sector peers by 0.41% on the day highlights the challenges it faces. Investors should consider broader macroeconomic factors, including crude oil demand forecasts, regulatory developments, and currency fluctuations, which could impact Reliance’s near-term performance.

Given the stock’s liquidity and large market capitalisation, it remains a key bellwether for the oil sector and the broader market. Its option market activity often presages directional moves, making the current call option surge a noteworthy signal for market participants.

Investor Takeaways and Outlook

For investors and traders, the current scenario presents a nuanced picture. The heavy call option activity at ₹1,400 strike price signals some degree of bullish positioning, possibly reflecting expectations of a recovery or a technical bounce. However, the downgrade to a Sell mojo grade and the stock’s failure to hold above key moving averages counsel caution.

Long-term investors may find value in the rising delivery volumes, suggesting accumulation by institutional players. Conversely, short-term traders should monitor open interest changes and price action closely as expiry approaches, given the potential for volatility around the ₹1,400 level.

Ultimately, Reliance Industries Ltd remains a pivotal stock within the oil sector, but current market signals advise a balanced approach, weighing both the speculative optimism in options markets and the fundamental caution flagged by recent ratings.

Summary

Reliance Industries Ltd’s active call option market, particularly at the ₹1,400 strike for the 30 March expiry, highlights significant investor interest amid a bearish technical backdrop and a recent downgrade in mojo rating. While delivery volumes and liquidity remain robust, the stock’s underperformance relative to sector peers and key moving averages suggests a cautious stance. Investors should carefully analyse option positioning alongside fundamental and technical indicators before making decisions.

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