Reliance Industries Sees Robust Call Option Activity Amid Bullish Market Sentiment

Strong Call Option Volumes Signal Bullish Positioning

Data from the derivatives market reveals that Reliance Industries Ltd has witnessed exceptional call option activity, particularly for contracts expiring on 27 January 2026. The strike price of ₹1,600 saw 4,894 contracts traded, generating a turnover of ₹13.41 crores and an open interest of 32,544 contracts. This is notable given the underlying stock price stood at ₹1,516.10 on 6 January 2026.

Even more striking is the activity at the ₹1,520 strike, where 7,765 contracts changed hands, with a turnover of ₹11.44 crores and open interest of 6,950 contracts. The ₹1,500 strike also attracted significant attention, with 4,913 contracts traded and a turnover exceeding ₹100 crores, though the open interest here was relatively lower at 7,829 contracts.

This concentration of call option volumes above the current market price suggests that investors are anticipating a rally in RIL’s shares over the coming weeks. The substantial open interest at the ₹1,600 strike, in particular, indicates a strong conviction in the stock’s ability to breach this level before expiry.

Stock Performance and Technical Context

Reliance Industries Ltd outperformed its sector on 6 January 2026, gaining 0.60% compared to the oil sector’s modest 0.06% rise and the Sensex’s decline of 0.12%. This rebound followed two consecutive days of declines, signalling a potential trend reversal. The stock’s price remains above its 100-day and 200-day moving averages, which often act as long-term support levels, although it is currently trading below its 5-day, 20-day, and 50-day moving averages, indicating some short-term consolidation.

Investor participation has notably increased, with delivery volumes surging to 1.43 crore shares on 6 January, a 227.12% rise compared to the five-day average. This heightened activity underscores growing confidence among market participants, further supported by the stock’s liquidity, which comfortably accommodates trade sizes of up to ₹35.98 crores based on recent average traded values.

Mojo Score and Rating Update

MarketsMOJO assigns Reliance Industries Ltd a Mojo Score of 62.0, reflecting a Hold rating as of 6 January 2026. This represents a downgrade from a previous Buy rating, signalling a more cautious stance amid mixed technical signals and valuation considerations. The company retains a Market Cap Grade of 1, underscoring its status as a large-cap heavyweight with a market capitalisation of ₹20,40,290 crores.

While the downgrade suggests tempered expectations, the stock’s relative outperformance and strong derivatives activity indicate that investors remain engaged, possibly anticipating sectoral tailwinds or company-specific catalysts in the near term.

Expiry Patterns and Investor Sentiment

The expiry date of 27 January 2026 is attracting significant open interest, particularly in call options with strike prices clustered around ₹1,500 to ₹1,600. This pattern is typical of investors positioning for a potential breakout or sustained rally ahead of the expiry, which often acts as a focal point for volatility and directional bets.

Open interest at the ₹1,600 strike is especially noteworthy, exceeding 32,000 contracts, which may act as a magnet for price movement as traders seek to capitalise on anticipated gains. The high turnover at the ₹1,520 strike further reinforces the bullish sentiment, with investors seemingly confident that the stock will surpass this level within the next three weeks.

Such concentrated activity in call options often precedes significant price moves, as market makers and institutional investors adjust their hedges and exposures accordingly. The current data suggests a tilt towards optimism, albeit tempered by the Hold rating and recent technical resistance.

Sectoral Context and Outlook

Reliance Industries Ltd operates within the oil sector, which has experienced mixed dynamics amid fluctuating crude prices and evolving energy demand patterns. The company’s diversified portfolio, spanning refining, petrochemicals, and retail, provides some insulation against sector volatility, but also exposes it to cyclical risks.

Recent price action and derivatives market activity suggest that investors are cautiously optimistic about near-term prospects, possibly anticipating favourable developments such as improved refining margins, strategic investments, or regulatory clarity. However, the Hold rating and technical indicators advise prudence, as short-term resistance levels remain a challenge.

For investors, the current derivatives positioning offers valuable insight into market expectations. The concentration of call option interest above the current price indicates a willingness to pay premiums for upside exposure, which could translate into upward price momentum if broader market conditions remain supportive.

Key Financial Metrics and Trading Considerations

Reliance Industries Ltd’s market capitalisation of over ₹20 lakh crores cements its position as a large-cap leader. The stock’s liquidity profile supports sizeable trades, with average daily traded values sufficient to handle transactions exceeding ₹35 crores without significant price impact.

Investors should monitor the evolving open interest and volume patterns in the options market, particularly as the 27 January expiry approaches. Any sharp increase in call option volumes or open interest at higher strikes could signal renewed bullish momentum, while a decline might suggest profit-taking or a shift in sentiment.

Given the recent downgrade to Hold, investors are advised to balance the bullish signals from derivatives activity with fundamental and technical analysis, ensuring risk management remains paramount in portfolio decisions.

Conclusion

Reliance Industries Ltd’s derivatives market activity ahead of the January 2026 expiry highlights a clear bullish bias among traders, with significant call option volumes and open interest clustered at strike prices above the current market level. While the stock has shown resilience and outperformance relative to its sector, the recent rating downgrade to Hold and mixed technical signals counsel measured optimism.

Market participants should closely watch the evolving options landscape and underlying price action to gauge the sustainability of this bullish positioning. For now, Reliance remains a key stock to watch in the oil sector, with its derivatives activity providing a valuable barometer of investor sentiment and potential price trajectories in the weeks ahead.

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