Reliance Industries Sees Robust Call Option Activity Signalling Bullish Sentiment

Strong Call Option Volumes Reflect Bullish Positioning

On 5 January 2026, Reliance Industries Ltd (NSE: RELIANCE) recorded exceptional call option trading volumes, particularly for contracts expiring on 27 January 2026. The strike prices of 1600, 1620, and 1650 have attracted the highest interest, with 12,931, 7,938, and 4,790 contracts traded respectively. This activity translates into a combined turnover exceeding ₹2,874 lakhs, signalling robust demand for bullish exposure.

The open interest data further corroborates this trend, with 15,580 contracts outstanding at the 1600 strike, 7,910 at 1620, and 5,272 at 1650. Given the underlying stock price of ₹1,597.8, these strike prices represent a moderate premium, indicating that traders are positioning for a potential upward move in the coming weeks.

Underlying Stock Performance Supports Optimism

Reliance Industries has been on a steady upward trajectory, hitting a new 52-week high of ₹1,611.8 on the day of reporting. The stock has gained 3.86% over the past four consecutive trading sessions, outperforming both its sector and the broader Sensex index. Today’s 0.34% gain also surpasses the sector’s 0.08% rise and the Sensex’s 0.15% decline, highlighting relative strength.

Technical indicators reinforce this bullish stance, with Reliance trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day. Such positioning often attracts momentum traders and institutional investors alike, contributing to increased liquidity and delivery volumes. Notably, delivery volume surged to 51.81 lakh shares on 2 January, a 71.22% increase over the five-day average, signalling rising investor participation.

Market Cap and Quality Metrics Underpin Positive Outlook

Reliance Industries commands a formidable market capitalisation of ₹21,62,082.56 crore, categorising it as a large-cap stock with significant institutional interest. The company’s mojo score stands at 70.0, reflecting a strong buy recommendation, an upgrade from a previous hold rating as of 3 November 2025. This upgrade is supported by improved fundamentals and favourable sector dynamics within the oil industry.

The mojo grade of ‘Buy’ aligns with the stock’s consistent performance and quality metrics, including a market cap grade of 1, indicating top-tier market capitalisation. Such credentials often attract long-term investors seeking stability alongside growth potential.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity around the 27 January 2026 expiry date suggests that traders are focusing on short-term catalysts or quarterly results that could influence the stock price. The clustering of contracts at the 1600 and 1620 strike prices, both slightly above the current market price, indicates a consensus expectation of moderate upside within the next three weeks.

Meanwhile, the 1650 strike price, though less heavily traded, still commands significant open interest, hinting at some investors’ anticipation of a more aggressive rally. The open interest figures imply that many traders are holding these positions rather than closing them, which could lead to increased volatility as expiry approaches.

Liquidity and Trading Size Support Active Market Participation

Reliance’s liquidity profile remains robust, with the stock’s traded value comfortably supporting trade sizes up to ₹22.31 crore based on 2% of the five-day average traded value. This liquidity ensures that both retail and institutional investors can enter and exit positions with minimal slippage, an important consideration for options traders who require efficient execution.

The stock’s delivery volume spike and consistent gains over recent sessions further reinforce the notion of sustained investor interest, which is critical for maintaining healthy options market activity.

Implications for Investors and Traders

The pronounced call option activity at strike prices above the current market level signals a predominantly bullish sentiment among market participants. Investors appear confident that Reliance Industries will continue its upward momentum, supported by strong fundamentals and sector tailwinds.

For traders, the elevated open interest and turnover at these strikes offer opportunities to capitalise on potential price appreciation or to hedge existing positions. However, the proximity of expiry means that timing will be crucial, and investors should monitor price action closely as the 27 January expiry approaches.

Moreover, the recent mojo upgrade from Hold to Buy reflects an improved outlook, which may attract further buying interest and support the stock’s valuation in the near term.

Sector Context and Broader Market Comparison

Within the oil sector, Reliance Industries continues to outperform peers, as evidenced by its relative gains and technical strength. The sector’s 0.08% rise pales in comparison to Reliance’s 0.34% gain on the day, while the broader Sensex declined by 0.15%, underscoring the stock’s defensive qualities amid mixed market conditions.

This outperformance is likely to sustain investor interest, particularly given the company’s large-cap status and dominant market position. The mojo score of 70.0 and market cap grade of 1 further validate Reliance’s standing as a preferred pick within the oil sector.

Conclusion

Reliance Industries Ltd’s call option market activity reveals a clear bullish bias, with significant volumes and open interest concentrated at strike prices just above the current trading level. Supported by strong price performance, upgraded mojo ratings, and robust liquidity, the stock is well positioned to attract continued investor attention in the near term.

Market participants should watch the evolving option expiry dynamics and underlying price movements closely, as these will provide critical signals for trading strategies and portfolio positioning. Overall, Reliance remains a compelling large-cap stock within the oil sector, combining solid fundamentals with active market participation.

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