Call Option Trading Highlights
Among the most actively traded call options for Tata Motors Passenger Vehicles are contracts with strike prices of ₹350 and ₹400, both expiring on 30 December 2025. The ₹350 strike call option recorded 4,466 contracts traded, generating a turnover of approximately ₹197.93 lakhs. Meanwhile, the ₹400 strike call option saw 4,412 contracts exchanged, with a turnover of ₹8.82 lakhs. Open interest for these strikes stands at 10,055 and 13,081 contracts respectively, indicating sustained investor interest in these price levels.
The underlying stock price at the time of this activity was ₹348.90, positioning the ₹350 strike call option close to the money, while the ₹400 strike represents a more bullish outlook, suggesting expectations of upward price movement by the expiry date.
Market Performance and Price Trends
Tata Motors Passenger Vehicles outperformed its sector by 0.7% on the day, registering a 1.06% return compared to the sector’s 0.33% and the Sensex’s 0.17%. This performance followed a two-day period of consecutive declines, signalling a potential trend reversal. The stock’s price currently trades above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages, reflecting a mixed technical picture.
Investor participation has shown signs of strengthening, with delivery volumes reaching 55.94 lakh shares on 16 December, a 29.98% increase compared to the five-day average delivery volume. This heightened activity suggests growing conviction among market participants, potentially underpinning the increased call option interest.
Liquidity and Market Capitalisation
With a market capitalisation of ₹1,27,225 crore, Tata Motors Passenger Vehicles is classified as a large-cap stock within the automobile sector. The stock’s liquidity supports trade sizes up to ₹5.74 crore based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.
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Investor Sentiment and Expiry Patterns
The concentration of call option activity at the ₹350 and ₹400 strike prices for the December 2025 expiry suggests a predominantly bullish positioning among traders. The near-the-money ₹350 strike call option’s high turnover and open interest indicate that investors are closely watching the stock’s ability to sustain or surpass this level in the coming weeks.
Meanwhile, the ₹400 strike call option’s substantial open interest points to a segment of the market anticipating a more pronounced rally, potentially driven by positive developments in the automobile sector or company-specific catalysts. The expiry date, just before the end of the calendar year, often attracts speculative and hedging activity as market participants adjust portfolios ahead of the new year.
Technical Indicators and Market Context
While the stock’s price remains below several longer-term moving averages, the recent outperformance relative to the sector and Sensex, coupled with rising delivery volumes, may indicate a tentative shift in market assessment. The divergence between short-term momentum and longer-term technical resistance levels could lead to increased volatility as investors weigh the company’s prospects.
Given the automobile sector’s sensitivity to macroeconomic factors such as fuel prices, regulatory changes, and consumer demand, the option market activity may also reflect hedging strategies against potential sector-wide shifts.
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Outlook and Considerations for Investors
Investors analysing Tata Motors Passenger Vehicles should consider the interplay between the stock’s recent price action, option market positioning, and broader sector trends. The elevated call option volumes at key strike prices highlight areas of market focus and potential price targets, while the mixed technical indicators suggest caution amid ongoing market fluctuations.
Furthermore, the stock’s liquidity and large-cap status provide a stable trading environment, though the automobile sector’s cyclical nature warrants attention to macroeconomic developments and company-specific news that could influence sentiment.
As the December 2025 expiry approaches, monitoring changes in open interest and turnover across strike prices will offer insights into evolving market expectations and risk appetite.
Summary
Tata Motors Passenger Vehicles is currently a focal point in the derivatives market, with call options at ₹350 and ₹400 strikes showing significant trading activity ahead of the year-end expiry. The stock’s recent outperformance relative to its sector and rising delivery volumes indicate growing investor engagement. However, the technical landscape remains mixed, underscoring the importance of a balanced approach when assessing the stock’s near-term prospects.
Investors should remain attentive to shifts in option market dynamics and broader sector developments as they evaluate Tata Motors Passenger Vehicles within their portfolios.
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