Reliance Industries Sees Robust Call Option Activity Signalling Bullish Sentiment

Call Option Activity Highlights

On 2 January 2026, Reliance Industries Ltd witnessed an impressive surge in call option volumes, with 13,045 contracts traded at the ₹1600 strike price expiring on 27 January 2026. This activity generated a turnover of ₹1401.69 lakhs, reflecting substantial investor interest in leveraged bullish bets. Open interest at this strike stands at 14,246 contracts, indicating sustained commitment from traders holding these positions.

The underlying stock price closed at ₹1585.7, just 0.44% shy of its 52-week high of ₹1592.5, underscoring the proximity to a key resistance level. The narrow trading range of ₹11.7 over recent sessions suggests consolidation before a potential breakout, supported by the stock’s consistent gains over the past three days, delivering a 2.97% return in this period.

Technical and Market Context

Reliance Industries is trading above all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a robust uptrend across multiple timeframes. This technical strength aligns with the bullish sentiment reflected in the options market. The stock’s 1-day return of 0.71% outpaced the sector’s 0.55% and the Sensex’s 0.53%, highlighting relative outperformance within the oil sector and broader market.

However, investor participation has shown signs of moderation, with delivery volume on 1 January falling by 32.18% compared to the 5-day average, totalling 23.71 lakh shares. Despite this dip, liquidity remains ample, with the stock’s traded value supporting sizeable transactions up to ₹19.39 crore based on 2% of the 5-day average traded value.

Fundamental and Market Capitalisation Overview

Reliance Industries Ltd operates within the oil industry and is classified as a large-cap stock with a market capitalisation of ₹21,48,076 crore. The company’s Mojo Score stands at 70.0, reflecting a positive outlook, and it has recently been upgraded from a Hold to a Buy rating as of 3 November 2025. This upgrade signals improved confidence in the company’s fundamentals and growth prospects.

The stock’s Market Cap Grade is rated 1, indicating its status as a heavyweight in the market. Such a rating often attracts institutional investors and long-term holders, which can contribute to price stability and sustained upward momentum.

Expiry Patterns and Investor Positioning

The concentration of call option activity at the ₹1600 strike price, which is slightly above the current underlying price, suggests that investors are positioning for a moderate upside in the near term. The expiry date of 27 January 2026 is less than a month away, indicating that traders expect the stock to breach or at least test this level within this timeframe.

Open interest data corroborates this bullish stance, as the sizeable number of contracts held implies that many investors are not merely speculating but are committed to their positions. This can often lead to increased volatility as expiry approaches, with potential for sharp price movements if the stock moves decisively above the strike price.

Sectoral and Broader Market Comparison

Reliance’s performance is in line with the oil sector’s recent trends, which have been buoyed by improving global energy demand and stabilising crude prices. The stock’s ability to outperform the Sensex marginally on the day reflects its resilience and investor preference amid mixed market conditions.

Given the oil sector’s cyclical nature, Reliance’s strong fundamentals and technical positioning provide a compelling case for investors seeking exposure to energy stocks with growth potential and relative stability.

Investor Implications and Outlook

For investors, the current call option activity in Reliance Industries Ltd offers valuable insight into market expectations. The strong volume and open interest at the ₹1600 strike price suggest a consensus view that the stock will maintain or exceed its current levels in the short term. This is supported by the stock’s technical strength and recent price gains.

However, the slight decline in delivery volumes indicates some caution among long-term holders, which could temper upside momentum if broader market conditions deteriorate. Investors should monitor the stock’s price action closely as the January expiry approaches, particularly watching for any breakout above the ₹1600 level that could trigger further bullish momentum.

Given the company’s recent upgrade to a Buy rating and its strong market capitalisation, Reliance remains a key stock to watch within the oil sector. Its liquidity and relative outperformance also make it an attractive option for both institutional and retail investors seeking exposure to India’s energy market.

Conclusion

Reliance Industries Ltd’s dominant position in call options trading, combined with its technical and fundamental strengths, underscores a bullish market sentiment heading into late January 2026. The stock’s proximity to its 52-week high, coupled with significant open interest at the ₹1600 strike price, highlights investor confidence in further gains. While some caution is warranted due to falling delivery volumes, the overall outlook remains positive for this large-cap oil sector leader.

Investors should consider these factors carefully when evaluating their portfolios, balancing the potential for upside with the inherent risks of market volatility as option expiry approaches.

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