Surge in Call Option Trading Highlights Bullish Sentiment
On the expiry day of 30 December 2025, Shriram Finance Ltd (SHRIRAMFIN) witnessed heavy call option volumes, particularly at strike prices close to the current underlying value of ₹967.55. The most actively traded call options were at the 980 strike, with 6,451 contracts changing hands, generating a turnover of approximately ₹158.07 lakhs and an open interest of 2,190 contracts. This was closely followed by the 1,000 strike call, which saw 2,840 contracts traded with a turnover of ₹11.72 lakhs and an open interest of 1,913 contracts. The 990 strike call also attracted significant attention, with 2,811 contracts traded and a turnover of ₹31.77 lakhs, alongside an open interest of 1,700 contracts.
The concentration of call option activity at strikes above the current market price suggests that traders are positioning for an upward move in Shriram Finance’s share price in the near term. The open interest figures indicate sustained interest and potential for further price momentum as expiry approaches.
Stock Performance and Technical Indicators Support Positive Outlook
On 30 December 2025, Shriram Finance outperformed its NBFC sector peers by 1.95%, registering a 1.19% gain compared to the sector’s decline of 0.21% and the Sensex’s marginal fall of 0.08%. The stock touched an intraday high of ₹976.85, marking a 2.23% increase from its previous close. Notably, Shriram Finance is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a strong upward trend across multiple timeframes.
Despite a sharp drop in delivery volume on 29 December 2025—down 70.39% against the 5-day average—the stock’s liquidity remains robust, with a trade size capacity of ₹27.34 crores based on 2% of the 5-day average traded value. This liquidity supports active trading and reduces the risk of price distortions due to low volume.
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Mojo Score Upgrade Reflects Improving Fundamentals
MarketsMOJO’s latest assessment upgraded Shriram Finance’s Mojo Grade from 'Hold' to 'Buy' on 15 December 2025, reflecting a Mojo Score of 72.0. This upgrade is supported by the company’s strong market capitalisation of ₹1,79,736 crores, categorising it as a large-cap stock with a Market Cap Grade of 1. The improved rating indicates enhanced financial health, operational performance, and favourable market positioning within the NBFC sector.
Investors should note that the upgrade coincides with the stock’s recent technical strength and the surge in call option interest, suggesting a convergence of fundamental and technical factors driving positive sentiment.
Expiry Patterns and Strike Price Analysis
The expiry date of 30 December 2025 has attracted concentrated activity in call options at strike prices ranging from ₹980 to ₹1,000, all above the current underlying price. This pattern indicates that market participants are anticipating a price rally that could breach these levels before or at expiry. The highest open interest at the 980 strike (2,190 contracts) and 1,000 strike (1,913 contracts) further confirms this expectation.
Such positioning often precedes a volatility spike as traders adjust their hedges and speculative bets. The substantial turnover at the 980 strike, amounting to over ₹158 lakhs, highlights aggressive accumulation of bullish call options, which may translate into upward price pressure on the underlying stock.
Sector Context and Comparative Performance
Shriram Finance’s outperformance relative to the NBFC sector and the broader market is noteworthy given the current macroeconomic environment. While the sector has faced headwinds from tightening credit conditions and regulatory scrutiny, Shriram Finance’s robust fundamentals and strategic initiatives appear to be differentiating it from peers.
The stock’s ability to sustain gains above key moving averages and the positive momentum in derivatives markets suggest that investors are increasingly confident in its growth prospects and risk management capabilities.
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Investor Implications and Outlook
For investors, the pronounced call option activity at strikes above the current price signals a consensus expectation of upward movement in Shriram Finance’s shares in the short term. The stock’s technical strength, combined with the recent Mojo Grade upgrade, provides a compelling case for bullish positioning.
However, investors should remain mindful of the broader NBFC sector risks, including interest rate fluctuations and regulatory developments, which could impact performance. The falling delivery volume observed recently may warrant caution, suggesting some investors are booking profits or reducing exposure ahead of expiry.
Overall, the confluence of strong derivatives market interest, positive technical indicators, and improving fundamental ratings positions Shriram Finance as a stock to watch closely in the coming weeks.
Summary
Shriram Finance Ltd’s stock has attracted significant call option interest at strike prices near and above ₹980 ahead of the 30 December 2025 expiry, reflecting bullish market sentiment. The stock’s outperformance relative to its sector and the Sensex, alongside a recent upgrade to a 'Buy' Mojo Grade, underscores improving fundamentals and technical momentum. While liquidity remains healthy, investors should balance optimism with sector-specific risks as expiry approaches.
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