Robust Call Option Activity Highlights Investor Sentiment
On 27 February 2026, TCS emerged as the most active stock in call options trading, with 2,817 contracts exchanged at the ₹2,700 strike price expiring on 30 March 2026. This activity generated a turnover of approximately ₹34.13 crores, underscoring significant investor interest. The open interest at this strike stands at 7,089 contracts, indicating sustained bullish bets as traders anticipate a potential upward move from the current underlying value of ₹2,654.6.
The strike price of ₹2,700 is particularly noteworthy as it sits roughly 1.7% above the current market price, suggesting that traders are positioning for a moderate rally within the next month. This level also aligns with a technical resistance zone, making the call option activity a barometer of market expectations for TCS’s near-term performance.
Stock Performance and Technical Context
Despite the bullish options activity, TCS’s stock price remains 3.57% above its 52-week low of ₹2,561.3, reflecting some underlying weakness in the broader market context. The stock has underperformed its sector by 0.75% on the day, closing with a modest gain of 0.23%, while the sector itself advanced 0.71%. The Sensex, in contrast, declined by 0.54%, highlighting mixed market dynamics.
Technically, TCS is trading above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This pattern suggests a short-term recovery phase amid a longer-term consolidation or correction. The stock has recorded three consecutive days of gains, delivering a cumulative return of 3.2% over this period, which may be encouraging for momentum traders.
However, investor participation appears to be waning, with delivery volumes on 26 February falling by 33.66% compared to the five-day average, signalling cautious commitment from long-term holders. Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹24.37 crores, ensuring smooth execution for institutional and retail investors alike.
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Fundamental and Market Positioning Analysis
TCS, a large-cap heavyweight in the Computers - Software & Consulting sector, currently holds a market capitalisation of ₹9,57,961 crores. The company’s Mojo Score stands at 51.0, with a Mojo Grade of Hold, upgraded from Sell on 22 April 2025. This reflects a cautious but improving outlook based on fundamental and technical parameters.
The stock offers a relatively high dividend yield of 4.12%, which may appeal to income-focused investors amid volatile market conditions. However, the recent downgrade in sector performance and the stock’s proximity to its 52-week low suggest that investors remain watchful for clearer signs of recovery.
Expiry Patterns and Strategic Implications for Traders
The expiry date of 30 March 2026 for the most active call options is significant, as it falls just over a month away, providing a near-term horizon for traders to capitalise on anticipated price movements. The concentration of open interest at the ₹2,700 strike price indicates a consensus expectation that TCS will breach this level, potentially driven by upcoming earnings announcements, contract wins, or sectoral tailwinds.
Options traders are likely employing these contracts to hedge existing positions or speculate on a rebound, given the stock’s recent three-day rally and technical signals. The relatively high turnover and open interest also suggest that institutional players are actively involved, adding credibility to the bullish sentiment.
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Sectoral and Broader Market Context
The Computers - Software & Consulting sector has shown mixed performance recently, with TCS underperforming its peers marginally on the day. The sector’s 0.71% gain contrasts with TCS’s 0.23% rise, indicating that while the company remains a key player, it faces competitive pressures and market headwinds.
Global IT spending trends, currency fluctuations, and geopolitical factors continue to influence investor sentiment in this space. TCS’s ability to maintain steady dividend yields and improve its Mojo Grade from Sell to Hold suggests resilience, but investors should monitor upcoming quarterly results and sector developments closely.
Investor Takeaways and Outlook
For investors and traders, the heightened call option activity at the ₹2,700 strike price expiring in March 2026 offers a clear signal of bullish expectations. Those bullish on TCS may consider leveraging options strategies to benefit from potential upside while managing risk. Conversely, cautious investors might await confirmation of sustained price momentum before increasing exposure.
The stock’s current technical setup, combined with improving fundamental grades and attractive dividend yield, positions it as a watchlist candidate for medium-term investors. However, the proximity to 52-week lows and falling delivery volumes warrant prudence.
Overall, TCS’s options market activity provides valuable insight into market psychology, reflecting a tentative but growing confidence in the company’s near-term prospects within a challenging sector environment.
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