Robust Call Option Volume Highlights Investor Optimism
On 9 February 2026, TCS emerged as the most active stock in call options, with 4,824 contracts traded at the 3,000 strike price expiring on 24 February 2026. This activity generated a turnover of ₹411.46 lakhs, reflecting significant capital deployment in bullish bets. The open interest at this strike stands at 11,792 contracts, underscoring sustained investor interest and potential for further price movement.
The underlying stock closed at ₹2,943.40, approximately 2.51% above its 52-week low of ₹2,866.60, indicating that the strike price of 3,000 is within reach if the stock regains momentum. The call option activity at this strike price suggests traders are anticipating a rebound that could push TCS above this level within the next fortnight.
Price and Trend Analysis: Mixed Signals Amid Sector Dynamics
Despite the bullish options positioning, TCS’s price action remains cautious. The stock has recently reversed after three consecutive days of decline, posting a modest gain of 0.08% on the day, slightly underperforming the sector’s 0.13% rise and the Sensex’s 0.40% advance. Notably, TCS is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a persistent downtrend in the short to long term.
Investor participation appears to be waning, with delivery volumes on 6 February falling by 2.12% against the five-day average, registering 31.08 lakh shares. This decline in delivery volume may indicate cautious sentiment among long-term holders, even as speculative call buying intensifies.
Dividend Yield and Market Capitalisation: Defensive Attributes Amid Volatility
TCS offers a relatively high dividend yield of 3.71% at the current price, which may appeal to income-focused investors amid market volatility. The company’s market capitalisation stands at a commanding ₹10,64,242 crore, categorising it as a large-cap stock with substantial institutional interest and liquidity. The stock’s liquidity supports sizeable trades, with an estimated tradable value of ₹34.24 crore based on 2% of the five-day average traded value.
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Mojo Score and Rating Upgrade Reflect Cautious Optimism
MarketsMOJO assigns TCS a Mojo Score of 51.0, placing it in the 'Hold' category, an upgrade from its previous 'Sell' rating as of 22 April 2025. This shift reflects improved fundamentals and a stabilising outlook, though the stock remains under pressure from broader market headwinds and sector-specific challenges.
The company’s Market Cap Grade is rated 1, indicating its status as a large-cap entity with strong market presence but limited near-term growth catalysts. Investors should weigh the stock’s defensive qualities, such as dividend yield and market leadership, against its subdued price momentum and technical weaknesses.
Options Expiry Patterns and Strategic Positioning
The concentration of call option activity at the 3,000 strike price for the 24 February expiry suggests that traders are positioning for a near-term breakout. Given the underlying price of ₹2,943.40, a move above 3,000 would represent a 1.9% gain, which could trigger further bullish momentum if confirmed by volume and broader market support.
Open interest data indicates that the 3,000 strike is a key level watched by market participants, with the potential for significant unwinding or rollovers as expiry approaches. This dynamic often leads to increased volatility, providing opportunities for both directional traders and hedgers.
Sector Context and Comparative Performance
Within the Computers - Software & Consulting sector, TCS’s performance has been largely inline with peers, though it has lagged the broader Sensex index. The sector’s 0.13% gain on the day contrasts with TCS’s marginal 0.08% rise, highlighting the stock’s relative underperformance despite the surge in call option interest.
Investors should monitor sectoral trends, including IT spending patterns, global demand for software services, and currency fluctuations, all of which can materially impact TCS’s earnings trajectory and stock price.
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Investor Takeaway: Balancing Bullish Options with Technical Caution
The surge in call option activity at the 3,000 strike price for TCS signals a growing bullish sentiment among traders anticipating a near-term recovery. However, the stock’s position below all major moving averages and declining delivery volumes suggest that caution remains warranted.
Long-term investors may find comfort in TCS’s robust market capitalisation, attractive dividend yield, and upgraded Mojo rating, while short-term traders could capitalise on the volatility around options expiry. Monitoring open interest changes and price action near the 3,000 level will be critical in assessing the sustainability of any upward move.
Overall, TCS presents a nuanced picture: a large-cap stalwart with defensive attributes and improving fundamentals, yet facing technical hurdles that require careful analysis before committing fresh capital.
Looking Ahead: Key Dates and Market Drivers
As the 24 February 2026 options expiry approaches, market participants will closely watch TCS’s price behaviour and volume trends. Earnings announcements, sectoral updates, and global IT demand indicators will also influence sentiment and positioning.
Investors should remain vigilant for signs of trend reversal confirmation or further weakness, adjusting their strategies accordingly to balance risk and reward in this evolving landscape.
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