Reliance Industries Sees Robust Call Option Activity Ahead of January Expiry

Call Option Activity Highlights

Data from the derivatives market reveals that Reliance Industries’ call options expiring on 27 January 2026 have attracted substantial volumes, particularly at strike prices ranging from ₹1,420 to ₹1,500. The most actively traded call option was at the ₹1,500 strike, with 9,602 contracts changing hands, generating a turnover of ₹66.25 lakhs and an open interest of 24,998 contracts. This level of open interest indicates a strong concentration of bullish bets anticipating a rally beyond this strike price within the next week.

Close behind, the ₹1,480 strike call saw 10,023 contracts traded, with a turnover of ₹75.67 lakhs and an open interest of 10,848. The ₹1,420 strike call option led in turnover, amassing ₹429.24 lakhs on 7,876 contracts, supported by an open interest of 7,679. These figures suggest that traders are positioning across a range of near-the-money and slightly out-of-the-money strikes, reflecting a nuanced outlook on the stock’s short-term trajectory.

Price Performance and Technical Context

Reliance Industries has been under pressure recently, recording a 3.4% decline over the past three trading sessions. The stock has traded within a narrow range of ₹10.4, indicating subdued volatility despite the heavy options activity. Notably, the share price is currently below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a bearish technical setup.

Investor participation, however, has been rising, with delivery volumes on 19 January reaching 1.11 crore shares—a 75.94% increase compared to the five-day average. This heightened engagement suggests that while the price has softened, market participants remain actively involved, possibly anticipating a reversal or a significant move ahead of the options expiry.

Mojo Score and Market Capitalisation

Reliance Industries currently holds a Mojo Score of 62.0, categorised as a Hold, reflecting a recent downgrade from a Buy rating on 6 January 2026. The downgrade aligns with the recent price softness and technical deterioration. Despite this, the company maintains a robust market capitalisation of ₹19,12,476 crore, underscoring its status as a large-cap heavyweight within the oil sector.

Interpreting the Options Market Sentiment

The concentration of open interest at higher strike prices, particularly ₹1,480 and ₹1,500, suggests that traders are positioning for a potential upside breakout despite the current bearish price action. The disparity between the underlying value of ₹1,410 and the active strikes indicates a degree of optimism or hedging against a rebound in the near term.

Moreover, the substantial turnover at the ₹1,420 strike, which is slightly out-of-the-money, points to a strategic accumulation of call options that could benefit from even modest upward price movements. This pattern is consistent with a cautious bullish stance, where investors seek leveraged exposure while managing risk amid uncertain market conditions.

Sector and Market Comparisons

Reliance’s performance today was broadly in line with the oil sector, which declined by 0.81%, while the Sensex fell 0.50%. The stock itself slipped 0.36%, marginally outperforming the broader market but continuing its downward trend. This relative resilience, combined with rising delivery volumes, may be encouraging traders to maintain or increase their bullish exposure through call options.

Liquidity remains ample, with the stock’s average traded value supporting trade sizes up to ₹41.13 crore based on 2% of the five-day average. This liquidity facilitates active options trading and allows institutional and retail investors to execute sizeable positions without significant market impact.

Outlook and Investor Considerations

While the recent downgrade to a Hold rating and the stock’s technical weakness warrant caution, the active call option interest at strikes above the current price suggests that market participants are not fully bearish. Investors should monitor the upcoming expiry on 27 January closely, as the resolution of these options positions could trigger increased volatility and directional moves.

Given the stock’s large-cap status and significant market presence in the oil sector, Reliance Industries remains a key barometer for sector sentiment. Traders and investors should weigh the mixed signals from price action and options activity carefully, considering both the potential for a rebound and the risks of continued downside pressure.

In summary, Reliance Industries’ options market activity reveals a complex narrative of cautious optimism amid a challenging technical backdrop. The coming days will be critical in determining whether the stock can break its recent losing streak and validate the bullish bets embedded in the call options market.

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