Call Option Trading Highlights
In the lead-up to the 30 December 2025 expiry, Shriram Finance has witnessed substantial call option volumes across multiple strike prices. The most actively traded call options include strikes at ₹870, ₹880, and ₹900, with the underlying stock price currently at ₹887.0. The ₹870 strike saw 17,317 contracts traded, generating a turnover of approximately ₹2,674.44 lakhs and an open interest of 2,084 contracts. Meanwhile, the ₹880 strike recorded 15,655 contracts traded with a turnover of ₹2,026.42 lakhs and an open interest of 4,341 contracts. The ₹900 strike price attracted 16,574 contracts, with turnover at ₹1,340.01 lakhs and open interest standing at 4,123 contracts.
This concentration of activity near and slightly above the current market price indicates a strong inclination among traders towards bullish positioning. The open interest figures at the ₹880 and ₹900 strikes, both exceeding 4,000 contracts, underscore sustained interest and potential accumulation at these levels.
Price Performance and Market Context
Shriram Finance’s stock price has demonstrated resilience and momentum in recent sessions. Over the past three trading days, the stock has recorded a cumulative return of 5.8%, outperforming its sector by 2.79% on the latest trading day. On 18 December, the stock touched an intraday high of ₹898.85, representing a 3.38% rise, while the intraday low was ₹850.5, down 2.18%. The weighted average price suggests that a larger volume of shares traded closer to the lower end of the day’s range, indicating some profit booking or cautious positioning amid the gains.
Technical indicators reinforce the positive momentum, with Shriram Finance trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This alignment across multiple timeframes typically signals sustained upward trends and investor confidence.
Investor participation has also shown notable expansion. Delivery volumes on 18 December reached 92.99 lakh shares, marking a 120.9% increase compared to the five-day average delivery volume. Such a surge in delivery volume often reflects genuine buying interest rather than speculative intraday trading.
Liquidity conditions remain favourable for sizeable trades, with the stock’s liquidity supporting trade sizes up to ₹15.63 crore based on 2% of the five-day average traded value. This level of liquidity is crucial for institutional investors and traders looking to execute large orders without significant market impact.
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Sector and Market Capitalisation Context
Shriram Finance operates within the Non Banking Financial Company (NBFC) sector, a segment that has been under close scrutiny given evolving regulatory frameworks and credit market dynamics. The company’s market capitalisation stands at ₹1,61,487 crore, placing it firmly in the large-cap category. This scale provides it with a degree of stability and investor trust relative to smaller peers.
On the trading day under review, Shriram Finance’s stock recorded a 3.17% gain, outpacing the sector’s 0.42% and the broader Sensex’s 0.55% returns. This relative strength highlights the stock’s appeal amid a mixed market environment.
Expiry Patterns and Investor Positioning
The concentration of call option activity around the ₹870 to ₹900 strike prices for the 30 December expiry suggests that market participants are positioning for a potential upward move in the stock price over the coming weeks. The open interest data indicates that traders are not only initiating new positions but also maintaining existing ones, which may point to expectations of sustained momentum.
Such patterns often reflect a combination of hedging strategies and speculative bets. Institutional investors might be using call options to protect long stock holdings or to leverage bullish views with defined risk. Meanwhile, retail traders could be attracted by the potential for leveraged gains if the stock price moves favourably.
Given the underlying value of ₹887.0 and the active strikes slightly above this level, the market appears to be pricing in a scenario where Shriram Finance could breach the ₹900 mark before expiry. This is supported by the stock’s recent intraday high near ₹899 and its position above key moving averages.
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Implications for Investors
For investors and traders, the current option market activity in Shriram Finance offers insights into market sentiment and potential price trajectories. The elevated volumes and open interest in call options near the current price level suggest that market participants are anticipating positive developments or continued strength in the stock.
However, the weighted average price data indicating more volume near the day’s low signals some caution or profit-taking, which is typical in a volatile market environment. Investors should consider these dynamics alongside broader sector trends and macroeconomic factors affecting NBFCs.
Liquidity metrics confirm that Shriram Finance remains accessible for both retail and institutional investors, facilitating efficient trade execution without excessive price impact. This is an important consideration for those looking to build or adjust positions in the stock.
Conclusion
Shriram Finance’s recent surge in call option activity, combined with its strong price performance and technical positioning, reflects a market environment where bullish sentiment is prominent. The stock’s standing above key moving averages and its outperformance relative to sector and benchmark indices further reinforce this view.
As the 30 December expiry approaches, monitoring option volumes, open interest changes, and price action will be crucial for investors seeking to understand evolving market expectations. The data suggests that Shriram Finance remains a key focus within the NBFC sector, attracting significant attention from derivatives traders and equity investors alike.
Overall, the interplay of robust call option trading, solid price momentum, and favourable liquidity conditions positions Shriram Finance as a noteworthy stock in the current market landscape.
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