Robust Price Performance and Market Context
On 16 February 2026, Torrent Pharmaceuticals Ltd. (NSE: TORNTPHARM) hit a new 52-week and all-time high of ₹4,304.9, marking a 5.56% intraday gain. This performance notably outpaced the Pharmaceuticals & Biotechnology sector, which rose by 0.73%, and the broader Sensex, which inched up by a mere 0.06%. The stock has recorded gains for three consecutive sessions, delivering a cumulative return of 5.8% during this period.
Technical indicators reinforce the bullish trend, with Torrent Pharma trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Investor participation has also intensified, as evidenced by a 27.9% increase in delivery volume to 2.21 lakh shares on 13 February compared to the five-day average. Liquidity remains ample, supporting trade sizes up to ₹2.63 crore based on 2% of the five-day average traded value.
Call Option Activity: Strike Prices and Expiry Insights
The most active call options for Torrent Pharmaceuticals are concentrated around strike prices of ₹4,200, ₹4,300, and ₹4,400, all expiring on 24 February 2026. The underlying stock price at the time of analysis stood at ₹4,303.2, placing the ₹4,300 strike call option near the money, while the ₹4,200 and ₹4,400 strikes represent slightly in-the-money and out-of-the-money positions respectively.
Trading volumes for these strikes are substantial: 6,192 contracts at ₹4,200, 8,438 contracts at ₹4,300, and 6,184 contracts at ₹4,400. The turnover for these options is equally impressive, with ₹1,673.39 lakh for the ₹4,200 strike, ₹1,642.03 lakh for ₹4,300, and ₹723.84 lakh for ₹4,400. Open interest figures stand at 554, 1,350, and 1,272 contracts respectively, indicating sustained investor interest and potential for further price movement.
Investor Sentiment and Strategic Positioning
The concentration of call option activity near and above the current market price suggests a predominantly bullish outlook among traders. The high open interest at the ₹4,300 strike, coupled with the largest number of contracts traded, points to expectations of continued upward momentum in the near term. Meanwhile, the active trading at the ₹4,200 strike may reflect hedging strategies or profit-taking at slightly lower levels, while the ₹4,400 strike activity indicates speculative bets on further upside beyond the recent highs.
Such positioning aligns with Torrent Pharmaceuticals’ recent upgrade by MarketsMOJO, which raised its Mojo Grade from Hold to Buy on 23 December 2025, reflecting improved fundamentals and positive outlook. The company’s Mojo Score of 77.0 further supports the bullish stance, indicating strong financial health and growth prospects within the Pharmaceuticals & Biotechnology sector.
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Comparative Sector and Market Performance
Within the Pharmaceuticals & Biotechnology sector, Torrent Pharmaceuticals has outperformed peers consistently over recent sessions. The sector’s modest 0.73% gain on the day contrasts with Torrent’s 5.67% rise, underscoring the stock’s relative strength. This outperformance is particularly notable given the sector’s sensitivity to regulatory developments and global pharmaceutical trends.
Market capitalisation for Torrent stands at a robust ₹1,45,531.54 crore, categorising it firmly as a large-cap stock. This scale provides the company with significant operational leverage and resilience amid sector volatility. The stock’s liquidity profile further enhances its attractiveness to institutional investors and traders seeking sizeable positions without excessive market impact.
Expiry Patterns and Implications for Investors
The 24 February 2026 expiry date for the active call options is just over a week away, creating a near-term horizon for traders to capitalise on anticipated price movements. The clustering of open interest and turnover around the ₹4,200 to ₹4,400 strikes suggests that market participants are positioning for a potential breakout or consolidation in this range.
Investors should monitor the stock’s ability to sustain levels above the ₹4,300 mark, as a decisive move could trigger further call option buying and price appreciation. Conversely, any failure to hold these levels might prompt profit-taking and a shift in option market dynamics. The interplay between spot price action and option expiry will be critical in shaping the stock’s trajectory in the coming days.
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Outlook and Strategic Considerations for Investors
Given the current bullish momentum and strong option market interest, Torrent Pharmaceuticals appears well-positioned for further gains in the short to medium term. The upgrade to a Buy rating by MarketsMOJO, supported by a high Mojo Score, reflects confidence in the company’s earnings growth, product pipeline, and market share expansion.
Investors should consider the implications of the concentrated call option activity as a signal of market expectations. The significant turnover and open interest at strikes near the current price indicate that traders are anticipating continued upward price action, potentially driven by favourable earnings results, regulatory approvals, or sector tailwinds.
However, as with all derivative-driven market moves, caution is warranted. Option expiry dates can bring volatility, and shifts in sentiment or broader market conditions could alter the stock’s trajectory. Monitoring volume, price action, and open interest changes will be essential for timely decision-making.
Summary
Torrent Pharmaceuticals Ltd. is currently experiencing a pronounced surge in call option trading, with the bulk of activity centred around the ₹4,200 to ₹4,400 strike prices expiring on 24 February 2026. This activity, combined with the stock’s recent record highs and strong technical positioning, signals robust bullish sentiment among investors. The company’s upgraded Mojo Grade to Buy and a high Mojo Score of 77.0 further reinforce the positive outlook. While the near-term expiry introduces some volatility risk, the overall market indicators suggest that Torrent Pharmaceuticals remains a compelling large-cap stock within the Pharmaceuticals & Biotechnology sector.
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