Reliance Industries Sees Robust Call Option Activity Amid Mixed Market Signals

Call Option Activity Highlights

Data from the derivatives market reveals that the most actively traded call options for Reliance are concentrated at the ₹1,400 and ₹1,500 strike prices, both expiring on 24 February 2026. The ₹1,400 strike call saw 5,397 contracts traded, generating a turnover of ₹1,088.57 lakhs, with an open interest of 7,162 contracts. Meanwhile, the ₹1,500 strike call recorded 3,704 contracts traded, with a turnover of ₹142.05 lakhs and a significantly higher open interest of 9,911 contracts.

This elevated open interest at the ₹1,500 strike, which is approximately 7.3% above the current underlying price, suggests that traders are positioning for a potential breakout beyond this level in the coming weeks. The substantial volume and turnover at the ₹1,400 strike, close to the current market price, further indicate active hedging and speculative interest in the stock’s immediate price movements.

Stock Performance and Sector Context

Reliance Industries has underperformed its Oil Exploration and Refinery sector peers, with a 1-day return of 1.26% compared to the sector’s 2.41% gain on 27 January 2026. The stock touched an intraday high of ₹1,409.9, marking a 2.13% increase, signalling a tentative trend reversal after three consecutive days of decline. However, it remains below its 20-day, 50-day, 100-day, and 200-day moving averages, indicating that the broader trend is still under pressure.

Investor participation has notably increased, with delivery volumes rising by 155.46% to 1.99 crore shares on 27 January, compared to the five-day average. This surge in delivery volume underscores growing conviction among investors, possibly driven by expectations of a recovery or positive catalysts in the near term.

Mojo Score and Rating Update

Reliance Industries currently holds a Mojo Score of 62.0, reflecting a Hold rating, downgraded from Buy on 6 January 2026. The downgrade reflects a cautious stance amid mixed technical signals and sector headwinds. Despite the downgrade, the company retains a Market Cap Grade of 1, underscoring its status as a large-cap heavyweight with a market capitalisation of ₹18,91,703.83 crore.

The downgrade aligns with the stock’s recent underperformance relative to the Oil sector, which gained 2.28% on the same day. Investors should weigh the stock’s fundamental strength against near-term technical challenges and sector volatility.

Expiry Patterns and Investor Positioning

The concentration of call option activity at the ₹1,400 and ₹1,500 strikes ahead of the 24 February expiry suggests that traders are anticipating a potential rally in Reliance’s share price over the next four weeks. The open interest data indicates that the ₹1,500 strike is a key resistance level that market participants expect the stock to challenge or surpass.

Such positioning is often indicative of bullish sentiment, with investors willing to pay premiums for the right to buy shares at these higher strike prices. This could be driven by expectations of positive earnings, strategic announcements, or favourable macroeconomic developments impacting the oil sector.

However, the stock’s current trading below longer-term moving averages signals that any upside may face technical hurdles. Traders should monitor volume trends and price action closely as expiry approaches to gauge the sustainability of this bullish positioning.

Liquidity and Trading Considerations

Reliance Industries remains highly liquid, with trading volumes sufficient to support sizeable trade sizes. Based on 2% of the five-day average traded value, the stock can accommodate trade sizes up to ₹48.8 crore without significant market impact. This liquidity is a key factor for institutional investors and traders looking to execute large positions in both the cash and derivatives segments.

The stock’s delivery volume spike and active options market suggest heightened investor interest, which could translate into increased volatility as the February expiry approaches. Market participants should be mindful of this dynamic when planning their trades or portfolio adjustments.

Outlook and Strategic Implications

While Reliance Industries faces near-term technical resistance and sector headwinds, the surge in call option activity at higher strike prices signals optimism among traders for a potential rebound. Investors should consider the stock’s fundamental strengths, including its dominant market position in the oil sector and robust market capitalisation, alongside the technical signals and options market positioning.

Given the Hold rating and recent downgrade, a cautious approach is advisable, with close monitoring of price action around key moving averages and strike prices. The options market data provides valuable insight into market expectations and can serve as a useful tool for timing entries or exits.

Summary

Reliance Industries Ltd is currently at a crossroads, with mixed signals from its price trend and a clear bullish tilt in the options market. The heavy call option volumes at ₹1,400 and ₹1,500 strikes ahead of the 24 February expiry reflect investor anticipation of upward price movement. However, the stock’s position below major moving averages and recent rating downgrade counsel prudence. Investors should balance these factors carefully and consider alternative opportunities where appropriate.

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