Robust Call Option Activity Highlights Investor Sentiment
On the expiry date of 24 Feb 2026, TMPV recorded an impressive 7,462 call option contracts traded at the ₹380 strike price. This activity generated a turnover of ₹15.52 lakhs and an open interest of 3,782 contracts, reflecting strong market participation. The underlying stock price stood at ₹379.45, just shy of the strike price, indicating that traders are positioning for a possible upward move beyond this level.
The volume and open interest data suggest that market participants are adopting a bullish stance, anticipating a rally in the near term. Such concentrated activity in call options often precedes significant price movements, as investors seek leveraged exposure to potential gains.
Stock Performance and Technical Indicators
Despite the bullish options activity, TMPV’s stock price showed a marginal decline of 0.39% on the day, underperforming slightly against the broader sector and Sensex indices, which fell 0.74% and 0.80% respectively. This minor setback followed two consecutive days of gains, signalling a possible short-term trend reversal.
Technically, the stock trades above its 20-day, 50-day, and 100-day moving averages, which typically indicates medium-term strength. However, it remains below its 5-day and 200-day moving averages, suggesting some near-term resistance and longer-term caution among investors. This mixed technical picture may explain the cautious but optimistic positioning in options markets.
Investor participation has notably increased, with delivery volumes surging to 84.31 lakhs on 23 Feb 2026, a 135.25% rise compared to the five-day average. This heightened activity underscores growing interest in TMPV shares, potentially driven by expectations of upcoming catalysts or sectoral tailwinds.
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Fundamental Assessment and Market Capitalisation
Tata Motors Passenger Vehicles Ltd is a large-cap company with a market capitalisation of ₹1,39,284 crores, operating within the automobile sector. Despite its size and industry prominence, the company’s Mojo Score currently stands at 41.0, with a Mojo Grade of Sell as of 4 Nov 2024, downgraded from Hold. This rating reflects concerns over certain financial metrics and operational challenges that have impacted investor confidence.
The Market Cap Grade is rated at 1, indicating limited upside potential relative to its valuation and sector peers. Such a grade often signals that investors should exercise caution and consider alternative opportunities within the sector or broader market.
Liquidity and Trading Viability
Liquidity remains adequate for TMPV, with the stock’s traded value supporting a trade size of approximately ₹6.17 crores based on 2% of the five-day average traded value. This level of liquidity ensures that institutional and retail investors can execute sizeable trades without significant price impact, an important factor for active options traders and portfolio managers.
The combination of strong delivery volumes and liquid trading conditions makes TMPV an attractive candidate for tactical trading strategies, particularly in derivatives markets where execution efficiency is paramount.
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Implications for Investors and Traders
The pronounced call option activity at the ₹380 strike price, coupled with rising delivery volumes, suggests that market participants are positioning for a potential rebound or breakout in TMPV shares. However, the stock’s recent price softness and mixed technical signals warrant a cautious approach.
Investors should weigh the company’s fundamental challenges, as reflected in its Mojo Grade downgrade, against the tactical opportunities presented by options market dynamics. The current environment favours nimble traders who can capitalise on volatility and directional shifts, while long-term investors may prefer to monitor developments before increasing exposure.
Given the stock’s large-cap status and sector affiliation, broader automobile industry trends and macroeconomic factors such as commodity prices, regulatory changes, and consumer demand will continue to influence TMPV’s trajectory.
Options Expiry Patterns and Market Behaviour
The expiry date of 24 Feb 2026 saw concentrated activity in call options, a pattern often indicative of traders hedging or speculating on near-term price movements. The strike price of ₹380 is particularly noteworthy as it sits just above the current market price, representing a key resistance level.
Open interest of 3,782 contracts at this strike suggests that a significant number of traders are either expecting the stock to surpass this level or are using these options to hedge existing positions. Monitoring changes in open interest and volume in the coming sessions will provide further clarity on market sentiment and potential price direction.
Conclusion: Balancing Bullish Options Activity with Fundamental Caution
Tata Motors Passenger Vehicles Ltd’s recent surge in call option trading highlights a growing bullish sentiment among traders, despite the company’s downgraded fundamental outlook and recent price softness. The stock’s technical positioning above key moving averages offers some support, but resistance at shorter-term averages and the 200-day mark tempers enthusiasm.
For investors, this scenario underscores the importance of integrating options market insights with comprehensive fundamental and technical analysis. While the derivatives activity signals potential upside, the underlying challenges reflected in the Mojo Grade and market cap assessment suggest prudence.
Ultimately, TMPV remains a stock to watch closely, especially as expiry dates approach and market conditions evolve. Active traders may find opportunities in the options space, while long-term investors should remain vigilant to sector developments and company-specific news.
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