Tata Motors Passenger Vehicles Gains 1.39%: 5 Key Factors Driving the Week

23 February 2026: Open Interest Surge Signals Market Positioning

Tata Motors Passenger Vehicles began the week with a 0.52% gain to close at Rs.379.85, slightly outperforming the Sensex’s 0.39% rise. The derivatives market saw a sharp 11.3% increase in open interest to 2,04,831 contracts, reflecting heightened speculative activity. This surge accompanied a daily volume of 1,32,739 contracts and a notional futures value of approximately ₹2,09,846 lakhs, alongside an enormous options turnover exceeding ₹19,66,39 crores.

Despite the open interest expansion, the stock’s price performance was subdued relative to its sector, indicating a complex interplay of bullish and bearish bets. The share price traded above its 20-day, 50-day, and 100-day moving averages, signalling medium-term strength, but remained below the 5-day and 200-day averages, suggesting short-term caution and longer-term resistance. Delivery volumes increased by 7.85%, indicating growing investor confidence in holding positions.

24 February 2026: Heavy Call Option Activity at ₹380 Strike

On 24 February, TMPV experienced the highest call option trading volumes at the ₹380 strike, with 7,462 contracts traded generating ₹15.52 lakhs in turnover. The stock price closed slightly lower at Rs.377.25 (-0.68%), underperforming the Sensex’s 0.78% decline but outperforming the automobile sector’s 0.74% fall. The open interest of 3,782 contracts at this strike indicated sustained bullish positioning despite the minor price setback.

Investor participation surged with delivery volumes rising 135.25% to 84.31 lakh shares, signalling genuine accumulation. The stock remained above its 20-day, 50-day, and 100-day moving averages, though below the 5-day and 200-day averages, reflecting mixed technical signals. The expiry date coinciding with this activity suggested tactical positioning ahead of contract settlement.

26 February 2026: Surge in Call and Put Option Activity Ahead of March Expiry

The 26th saw a significant spike in both call and put option volumes as the 30 March expiry approached. Call options at the ₹390 and ₹400 strikes recorded 5,952 and 8,927 contracts traded respectively, with turnovers of ₹569.49 lakhs and ₹559.19 lakhs. Open interest was concentrated at these strikes, indicating bullish bets on a price rally beyond Rs.390 and Rs.400.

Simultaneously, put options at the ₹380 strike saw 3,090 contracts traded with a turnover of ₹20.10 crores, signalling increased bearish hedging or speculative bets. The stock price closed at Rs.391.65 (+2.54%), outperforming the sector’s 0.54% gain and the Sensex’s 0.21% rise. Technical indicators showed the stock trading above its 5-day, 20-day, 50-day, and 100-day moving averages, but still below the 200-day average, indicating short- to medium-term strength with longer-term resistance.

Delivery volumes declined 12.76% to 39.8 lakh shares, suggesting some waning investor participation in the cash market despite active derivatives trading.

26 February 2026: Elevated Put Option Interest Reflects Caution

The heavy put option activity at the ₹380 strike price on the same day highlighted a cautious stance among investors. Despite the stock’s recent gains, the surge in puts suggested hedging against potential downside or anticipation of volatility. The stock’s mojo grade remains at Sell with a score of 41.0, reflecting fundamental concerns amid sectoral headwinds.

This dual surge in call and put options underscores a market grappling with uncertainty, balancing optimism for a rally with protective positioning. The ₹380 strike price emerges as a critical level of support or resistance as expiry approaches.

27 February 2026: Call Option Activity Concentrates at ₹400 Strike Despite Price Dip

On the final trading day of the week, TMPV recorded 3,231 call option contracts traded at the ₹400 strike, generating a turnover of ₹24.56 crores. Open interest at this strike stood at 4,507 contracts, signalling strong positioning for a potential rally above Rs.400 ahead of the 30 March expiry.

The underlying stock closed at Rs.383.15, down 2.17% on the day, yet it outperformed the automobile sector’s 1.08% decline and marginally outpaced the Sensex’s 0.54% drop. The stock remains above its 5-day, 20-day, 50-day, and 100-day moving averages but below the 200-day average, indicating short- to medium-term bullish momentum tempered by longer-term resistance.

Delivery volumes surged 65.7% to 81.08 lakh shares on 26 February, reflecting increased investor interest and liquidity. Despite this, the Mojo Score remains at 41.0 with a Sell rating, highlighting fundamental concerns that temper the bullish derivatives activity.

Daily Price Comparison: Tata Motors Passenger Vehicles vs Sensex

Key Takeaways

Positive Signals: The stock outperformed the Sensex by 2.35% over the week, supported by strong derivatives market activity, especially in call options at key strikes of ₹380, ₹390, and ₹400. Delivery volumes surged notably on 24 and 26 February, indicating genuine investor accumulation. Technical indicators show the stock trading above multiple moving averages, signalling short- to medium-term strength.

Cautionary Signals: Despite price gains, the Mojo Score remains low at 41.0 with a Sell rating, reflecting fundamental concerns. The stock remains below its 200-day moving average, a key resistance level. Elevated put option volumes at the ₹380 strike suggest hedging and bearish sentiment. Delivery volumes declined on 25 February, indicating some waning investor participation. The mixed technical and fundamental signals warrant a cautious stance.

Conclusion

Tata Motors Passenger Vehicles Ltd’s week was characterised by a delicate balance between bullish derivatives positioning and fundamental caution. The stock’s 1.39% weekly gain against a declining Sensex underscores resilience amid sectoral and market headwinds. Heavy call option activity at strikes near and above the current price signals market expectations of a potential rally, while significant put option volumes highlight hedging and risk management amid uncertainty.

Technical indicators support short- to medium-term strength, but the persistent Sell rating and sub-200-day moving average position counsel prudence. Investors and traders should closely monitor price action around the ₹380-₹400 range and expiry-related volatility as March approaches. The evolving open interest and volume patterns in both call and put options will provide critical insights into market sentiment and potential directional shifts.

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