Reliance Industries Sees Heavy Call Option Activity Amid Mixed Market Signals

Call Option Activity Highlights

On 8 January 2026, Reliance Industries Ltd recorded the highest call option turnover among its peers, with 4,641 contracts traded at the 1500 strike price. This activity generated a turnover of approximately ₹697.77 lakhs, reflecting strong speculative interest ahead of the January expiry. The open interest at this strike stands at 10,721 contracts, indicating sustained positioning by market participants.

The underlying stock price at the time was ₹1,494.20, just shy of the 1500 strike, suggesting that traders are positioning for a potential upward move in the near term. The expiry date of 27 January 2026 is less than three weeks away, adding urgency to these bullish bets.

Stock Performance and Technical Context

Reliance Industries has experienced a consecutive four-day decline, losing 6.12% over this period. On 8 January, the stock closed down 0.73%, slightly underperforming the Sensex, which fell 0.17%, but outperforming the oil sector’s 0.90% decline. The stock traded within a narrow intraday range of ₹12.8, reflecting subdued volatility despite the recent downtrend.

Technically, the share price remains above its 100-day and 200-day moving averages, signalling long-term support. However, it is currently trading below its 5-day, 20-day, and 50-day moving averages, indicating short-term weakness. This mixed technical picture may explain the cautious stance reflected in the MarketsMOJO Mojo Score of 62.0, which corresponds to a Hold rating. Notably, this is a downgrade from a Buy rating issued on 6 January 2026, reflecting recent price pressures and sector headwinds.

Investor Participation and Liquidity

Investor participation has shown signs of strengthening, with delivery volumes rising to 71.11 lakh shares on 7 January, a 14.16% increase compared to the five-day average. This uptick in delivery volume suggests that despite short-term price declines, investors are accumulating shares, possibly anticipating a rebound or longer-term value realisation.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹39.27 crore based on 2% of the five-day average traded value. This liquidity profile ensures that both institutional and retail investors can execute sizeable trades without significant market impact.

Sectoral and Market Context

Reliance Industries operates within the oil sector, a segment currently facing mixed macroeconomic signals. Global crude prices have been volatile amid geopolitical tensions and fluctuating demand forecasts. The company’s large market capitalisation of ₹20,22,021.50 crore places it firmly among India’s blue-chip stocks, making it a bellwether for the sector.

While the oil sector has underperformed the broader market recently, Reliance’s diversified business model, including petrochemicals, refining, and digital services, provides a buffer against pure commodity price swings. This diversification is reflected in the stock’s relative outperformance compared to the sector’s 0.90% decline on 8 January.

Options Market Sentiment and Expiry Dynamics

The concentration of call option activity at the 1500 strike price, close to the current market price, indicates a cautiously optimistic outlook among traders. The sizeable open interest suggests that many investors expect the stock to at least hold this level or move higher by the expiry date. However, the recent downgrade to a Hold rating and the short-term technical weakness temper overly bullish expectations.

Expiry on 27 January 2026 will be a critical juncture, as the stock’s movement towards or beyond the 1500 strike will determine the profitability of these call options. Traders holding these contracts may be positioning for a rebound driven by improving sector fundamentals or company-specific catalysts such as quarterly earnings or strategic announcements.

Outlook and Investor Considerations

Investors should weigh the current mixed signals carefully. The recent downgrade from Buy to Hold by MarketsMOJO reflects caution amid short-term price weakness and sector volatility. However, the strong call option activity near the money strike price suggests that market participants are not discounting a potential recovery.

Given Reliance’s large-cap status, diversified operations, and solid liquidity, it remains a core holding for many portfolios. Yet, the stock’s recent underperformance relative to its moving averages and the broader market calls for a measured approach. Investors may consider monitoring upcoming earnings releases and sector developments closely before increasing exposure.

Options traders, meanwhile, appear to be positioning for a rebound or at least a stabilisation around the 1500 level by the January expiry, signalling a cautiously bullish sentiment despite recent setbacks.

Summary

Reliance Industries Ltd’s prominence in call option trading underscores its importance in the Indian equity landscape. The stock’s recent price action and technical indicators present a complex picture, with long-term support offset by short-term weakness. The active call option interest at the 1500 strike price expiring later this month highlights a market expectation of potential upside or at least price stability in the near term.

Investors and traders alike should remain vigilant to evolving market conditions, sector dynamics, and company-specific news that could influence the stock’s trajectory as the January expiry approaches.

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