Reliance Industries Sees Heavy Call Option Activity Amid Bearish Technicals

Call Option Activity Highlights

On 26 February 2026, Reliance Industries witnessed a remarkable surge in call option contracts, with 5,841 contracts traded at the ₹1,400 strike price for the expiry dated 30 March 2026. This activity generated a turnover of ₹1,077.37 lakhs, underscoring robust investor interest in bullish bets on the stock. Open interest at this strike stands at 4,363 contracts, indicating sustained positioning rather than short-term speculative trades.

The underlying stock price closed at ₹1,405, just above the strike price, suggesting that traders are anticipating a potential upside in the near term. This concentration of call options at the ₹1,400 level reflects a key psychological and technical resistance point, where market participants expect the stock to either consolidate or break out.

Technical and Market Context

Despite the bullish positioning in options, Reliance Industries’ price action reveals a more cautious outlook. The stock has underperformed its sector by 0.06% but outperformed the broader Sensex by 0.21% on the day, indicating relative resilience. However, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a bearish trend across multiple timeframes.

Investor participation has notably increased, with delivery volumes reaching 54.93 lakh shares on 25 February 2026, a 52.75% rise compared to the five-day average. This heightened activity suggests that institutional investors are actively accumulating or adjusting positions, possibly in anticipation of upcoming corporate developments or macroeconomic factors affecting the oil sector.

Liquidity remains ample, with the stock’s traded value supporting trade sizes up to ₹30.74 crore based on 2% of the five-day average traded value. This ensures that large trades can be executed without significant price impact, an important consideration for option writers and buyers alike.

Fundamental and Rating Overview

Reliance Industries, a large-cap oil sector heavyweight with a market capitalisation of ₹18,96,440 crore, currently holds a Mojo Score of 47.0, categorised as a Sell. This represents a downgrade from a previous Hold rating on 25 February 2026, reflecting deteriorating fundamentals or valuation concerns as assessed by MarketsMOJO’s proprietary grading system.

The company’s Market Cap Grade is 1, indicating its dominant position in the market, but the overall Mojo Grade suggests caution for investors given recent performance and sectoral headwinds. The downgrade may be influenced by factors such as fluctuating crude oil prices, regulatory challenges, or earnings volatility.

Expiry Patterns and Investor Sentiment

The expiry date of 30 March 2026 is attracting significant open interest, with the ₹1,400 strike price serving as a focal point for bullish bets. The concentration of call options at this level suggests that investors are positioning for a potential rally or at least a stabilisation above this price point. However, the narrow trading range of ₹12.2 on the day indicates limited volatility, which may temper aggressive directional moves in the short term.

Options traders often use such strike price clusters to hedge existing stock positions or to speculate on directional moves with defined risk. The sizeable turnover and open interest imply that market makers and institutional players are actively managing their exposure, which could lead to increased volatility as expiry approaches.

Sectoral and Broader Market Comparison

Reliance Industries outperformed its oil sector peers by 0.25% on the day, while the sector itself posted a modest 0.06% gain. The Sensex closed slightly lower by 0.06%, highlighting Reliance’s relative strength amid broader market softness. This outperformance, coupled with rising delivery volumes, may indicate selective buying interest in the stock despite its technical weaknesses.

Given the oil sector’s sensitivity to global crude prices, geopolitical developments, and domestic policy changes, investors are likely weighing these factors alongside company-specific fundamentals. Reliance’s diversified business model, including refining, petrochemicals, and retail, provides some cushion against sector volatility but also adds complexity to valuation.

Investor Takeaways and Outlook

For investors, the current scenario presents a nuanced picture. The heavy call option activity at the ₹1,400 strike price signals bullish sentiment among derivatives traders, potentially anticipating a rebound or at least a floor near current levels. However, the stock’s position below all major moving averages and the recent downgrade to a Sell rating counsel caution.

Those considering fresh exposure should closely monitor price action around the ₹1,400 level and expiry dynamics on 30 March 2026. The rising delivery volumes suggest institutional interest, which could provide support, but the broader technical weakness and sectoral uncertainties may limit upside in the near term.

Risk-averse investors might prefer to wait for confirmation of a sustained breakout above key moving averages or improved fundamental signals before increasing exposure. Conversely, traders with a higher risk appetite could explore call options at the ₹1,400 strike to capitalise on potential volatility, keeping in mind the inherent risks of options trading.

Overall, Reliance Industries remains a pivotal stock within the oil sector, with its option market activity offering valuable insights into investor expectations and market positioning ahead of the March expiry.

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