Overview of Call Option Activity
Among the most actively traded call options for Tech Mahindra, contracts with strike prices of ₹1,480, ₹1,500, and ₹1,520 have dominated volumes. The 1,500 strike price call options recorded the highest number of contracts traded at 9,340, generating a turnover of approximately ₹574.88 lakhs. This was closely followed by the 1,520 strike price calls with 8,288 contracts traded and a turnover of ₹299.91 lakhs. The 1,480 strike price calls saw 5,107 contracts exchanged, contributing ₹521.40 lakhs in turnover.
Open interest figures further underscore the market’s positioning, with the 1,520 strike calls holding the largest open interest at 2,042 contracts, followed by 1,500 strike calls at 1,525 contracts and 1,480 strike calls at 602 contracts. These data points suggest a concentration of bullish sentiment clustered around the current underlying price level and slightly above it.
Price Performance and Market Context
Tech Mahindra’s stock price has demonstrated resilience, outperforming its sector by 1.53% on the day of analysis. The stock has recorded gains over four consecutive sessions, accumulating a return of 5.69% during this period. On the day in question, the stock touched an intraday high of ₹1,503.6, representing a 2.88% increase from the previous close.
Technical indicators reveal that the stock is trading above its 5-day, 20-day, 50-day, and 100-day moving averages, though it remains below the 200-day moving average. This positioning indicates short- to medium-term strength, while the longer-term trend may still be under consolidation.
Liquidity metrics show that Tech Mahindra is sufficiently liquid to support sizeable trades, with a 5-day average traded value allowing for trade sizes up to ₹9.54 crores based on 2% of average volume. However, delivery volumes have shown a decline, with a 41.47% reduction compared to the 5-day average, signalling a potential moderation in investor participation despite the price gains.
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Investor Sentiment and Expiry Dynamics
The concentration of call option activity around strike prices close to the current market price suggests that traders are positioning for a potential upward move in Tech Mahindra’s shares before the expiry date. The expiry on 25 November 2025 is a critical juncture, with the bulk of open interest clustered at ₹1,520 and ₹1,500 strikes, indicating expectations that the stock may test or surpass these levels.
Such positioning often reflects a bullish outlook, as call options provide leveraged exposure to price appreciation. The sizeable turnover and open interest at these strikes imply that market participants are actively hedging or speculating on near-term gains, possibly influenced by sectoral trends or company-specific developments.
Dividend Yield and Market Capitalisation
Tech Mahindra currently offers a dividend yield of 3.08% at the prevailing price, which may be attractive to income-focused investors alongside the potential for capital appreciation. The company’s market capitalisation stands at ₹1,43,114 crores, categorising it firmly as a large-cap stock within the Computers - Software & Consulting sector.
Comparatively, the stock’s one-day return of 2.74% outpaces the sector’s 1.14% and the Sensex’s marginal 0.06% gain, highlighting relative strength in a broader market context. This performance, coupled with active derivatives interest, positions Tech Mahindra as a key stock to watch in the coming days.
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Outlook and Considerations for Investors
While the derivatives market activity signals a bullish tilt, investors should consider the broader technical and fundamental context. The stock’s position below the 200-day moving average suggests that longer-term momentum may require confirmation. Additionally, the decline in delivery volumes could indicate cautiousness among some market participants despite recent price gains.
Given Tech Mahindra’s sectoral exposure and large-cap status, its price movements often reflect both domestic IT sector trends and global technology demand cycles. The active call option interest ahead of expiry may also be influenced by anticipated corporate announcements or macroeconomic factors impacting the software and consulting industry.
Investors analysing Tech Mahindra should monitor price action around the key strike prices of ₹1,480, ₹1,500, and ₹1,520, as these levels are focal points for option expiry dynamics. The interplay between spot price movements and option open interest will provide insights into market sentiment and potential volatility in the near term.
Summary
Tech Mahindra’s derivatives market activity ahead of the 25 November 2025 expiry reveals a concentrated interest in call options near the current trading price, reflecting a cautiously optimistic stance among traders. The stock’s recent outperformance relative to its sector and the Sensex, combined with a respectable dividend yield and large market capitalisation, underscores its significance in the Computers - Software & Consulting sector.
Market participants should weigh the technical signals, including moving average positions and delivery volume trends, alongside the robust option market positioning to form a comprehensive view of the stock’s near-term prospects.
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