Robust Call Option Activity Signals Bullish Positioning
The most active call options for Tata Steel are concentrated at the ₹200 strike price, expiring on 24 Feb 2026. On this day, a substantial 11,828 contracts were traded, generating a turnover of ₹3,617.00 lakhs. Open interest at this strike stands at 3,193 contracts, indicating sustained interest and potential accumulation by market participants.
With the underlying stock price at ₹204.91, the ₹200 strike calls are in-the-money, suggesting traders are positioning for further upside. The heavy volume and open interest at this strike price reflect a consensus expectation of continued strength in Tata Steel’s shares over the near term.
Share Price Momentum and Technical Strength
Tata Steel’s stock opened with a gap up of 2.51% and touched an intraday high of ₹206.34, marking a new 52-week peak. This performance outpaced the ferrous metals sector, which gained 1.26%, and the Sensex, which rose 0.64% on the same day. The stock’s 1-day return was a robust 3.69%, underscoring strong buying interest.
Technically, Tata Steel is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained uptrend. This technical strength supports the bullish sentiment evident in the options market.
Market Capitalisation and Quality Metrics
With a market capitalisation of ₹2,48,173 crores, Tata Steel is firmly positioned as a large-cap heavyweight in the ferrous metals industry. The company holds a Mojo Score of 75.0 and a Mojo Grade of Buy, upgraded from a previous Strong Buy rating on 1 Jan 2026. This reflects a slight moderation in outlook but still indicates a favourable investment stance.
The market cap grade of 1 further confirms Tata Steel’s status as a top-tier stock within its sector, attracting institutional and retail investor interest alike.
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Liquidity and Investor Participation Trends
Despite the strong price action, investor participation has shown signs of moderation. Delivery volume on 6 Feb was 76.36 lakh shares, down by 49.47% compared to the 5-day average delivery volume. This decline suggests some investors may be booking profits or adopting a wait-and-watch approach ahead of the options expiry.
Nevertheless, Tata Steel remains sufficiently liquid, with trading volumes supporting a trade size of approximately ₹9.67 crores based on 2% of the 5-day average traded value. This liquidity ensures that large trades can be executed without significant price impact, an important factor for institutional investors.
Options Expiry and Market Implications
The 24 Feb 2026 expiry date is attracting considerable attention, with the ₹200 call options dominating activity. The concentration of open interest and turnover at this strike price suggests that traders are positioning for a potential rally beyond ₹200 in the coming weeks.
Given the stock’s current price near ₹205 and its technical momentum, the market consensus appears bullish. Investors utilising call options are likely seeking leveraged exposure to anticipated gains, while also potentially hedging existing long positions.
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Sectoral Context and Comparative Performance
Within the ferrous metals sector, Tata Steel’s outperformance is notable. The sector’s 1-day return of 1.26% pales in comparison to Tata Steel’s 3.69% gain, highlighting the company’s relative strength. This outperformance is supported by strong fundamentals, including steady demand for steel products and improving operational efficiencies.
Investors should also consider Tata Steel’s position relative to peers, where its large-cap status and robust market cap grade provide a competitive advantage in terms of access to capital and market influence.
Outlook and Investor Considerations
While the recent upgrade from Strong Buy to Buy on 1 Jan 2026 indicates a slight tempering of enthusiasm, the overall outlook remains positive. The combination of technical strength, bullish options positioning, and solid fundamentals suggests that Tata Steel is well placed to sustain its upward trajectory in the near term.
Investors should monitor open interest trends and price action closely as the 24 Feb expiry approaches, as these will provide further clues on market expectations and potential volatility.
Summary
Tata Steel Ltd’s recent surge in call option activity, coupled with its new 52-week high and strong technical indicators, underscores a bullish market sentiment. The ₹200 strike price call options expiring on 24 Feb 2026 have attracted significant volume and open interest, signalling investor confidence in further gains. Despite some decline in delivery volumes, liquidity remains ample, supporting active trading. The company’s large-cap stature, favourable Mojo Score, and sector outperformance make it a compelling stock to watch in the ferrous metals space.
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