UltraTech Cement Gains 2.68%: Mixed Options Activity and Technical Upgrade Shape the Week

27 January: Surge in Trading Volume and Price Amid Bullish Momentum

UltraTech Cement Ltd emerged as one of the most actively traded stocks by value on 27 January 2026, with a turnover of ₹296.7 crores on a volume of 2.33 lakh shares. The stock price rose 1.81% to close at Rs.12,591.65, outperforming the Sensex’s 0.50% gain that day. Intraday, the stock touched a high of Rs.12,825, marking a 3.69% rise from the opening price of Rs.12,544.

This strong price action was supported by the stock trading above all key moving averages, signalling sustained bullish momentum. The delivery volume on 23 January had increased by 8.66% compared to the five-day average, indicating growing investor conviction and institutional participation.

27 January: Active Call Option Trading Reflects Bullish Sentiment

The derivatives market showed robust call option activity on 27 January, particularly at strike prices of Rs.12,800 and Rs.13,000. The 12,800 strike call saw 3,453 contracts traded with an open interest of 835, while the 13,000 strike call recorded 4,500 contracts and an open interest of 1,652. This concentration near the current stock price suggests traders are positioning for a potential upward move by expiry.

February expiry options also showed strong interest at the Rs.13,000 strike, with 4,862 contracts traded and a turnover exceeding ₹700 lakhs. This sustained call option interest indicates market participants anticipate the stock testing or surpassing the Rs.13,000 level in the near term.

27 January: Heavy Put Option Activity Signals Hedging and Caution

Contrasting the bullish call activity, UltraTech Cement also saw significant put option volume on 27 January, with 2,238 contracts traded at the Rs.12,500 strike. The turnover for these puts was ₹15.74 lakhs, and open interest stood at 375 contracts. The proximity of the stock price (Rs.12,718) to this strike price suggests investors are hedging against downside risk or speculating on a near-term correction.

This mixed options activity reflects a nuanced market sentiment, balancing optimism with prudence. The stock’s Mojo Score remained at 48.0 with a Sell rating prior to the upgrade, indicating fundamental caution despite strong price gains.

29 January: Upgrade to Hold as Technicals and Financials Strengthen

On 29 January, MarketsMOJO upgraded UltraTech Cement’s Mojo Grade from Sell to Hold, raising its Mojo Score to 54.0. This upgrade was driven by improved technical indicators and robust quarterly financial results. The company reported a 54.9% year-on-year increase in Profit Before Tax (excluding other income) to ₹2,236.67 crore for Q3 FY25-26, with net sales rising 22.78% to ₹21,829.68 crore and PAT up 31.9% to ₹1,792.99 crore.

Technically, the stock shifted from a mildly bearish to a sideways trend, supported by bullish weekly MACD and Bollinger Bands, though monthly indicators remained mildly bearish. The stock closed at Rs.12,773.10 on 28 January, near its 52-week high of Rs.13,101.80, reflecting a consolidation phase after recent gains.

UltraTech Cement’s strong institutional ownership of 32.43% and consistent outperformance over multiple timeframes underpin the quality of the stock. Its valuation, while premium, is justified by market leadership and growth prospects, supporting the Hold rating.

30 January: Week Closes with Modest Pullback Amid Mixed Market Signals

The stock closed the week at Rs.12,700.05 on 30 January, down 0.15% from the previous day’s close but still up 2.68% for the week. The Sensex declined 0.22% on the day, leaving UltraTech Cement with a clear outperformance over the benchmark for the week. Trading volume was subdued at 4,348 shares, reflecting a cautious market ahead of the weekend.

This slight pullback follows the mixed options activity and technical consolidation, suggesting investors are digesting recent gains while awaiting further catalysts.

Key Takeaways

UltraTech Cement Ltd demonstrated a strong weekly performance, gaining 2.68% versus the Sensex’s 1.62%, supported by high liquidity and institutional interest. The stock’s proximity to its 52-week high and sustained trading above key moving averages reflect positive technical momentum.

However, the mixed options market activity—with heavy call and put volumes—signals a complex sentiment, balancing bullish positioning with hedging strategies. This is further reflected in the recent upgrade to a Hold rating, which acknowledges improving fundamentals but advises caution amid valuation and sectoral headwinds.

The company’s robust Q3 financial results, including a 54.9% rise in PBT and strong sales growth, underpin confidence in its operational strength. The technical shift from mildly bearish to sideways suggests consolidation, with potential for further gains if key resistance levels are breached.

Investors should monitor upcoming market developments, including quarterly earnings updates and sector trends, while considering protective strategies given the nuanced market signals.

Conclusion

UltraTech Cement Ltd’s week was characterised by solid price gains, active trading, and a notable upgrade in investment rating, reflecting a balanced improvement in technical and fundamental factors. The stock outperformed the broader market, supported by strong institutional participation and positive quarterly results.

Nevertheless, the mixed derivatives activity and cautious Mojo Grade highlight the importance of a measured approach. While the stock shows resilience and potential for further appreciation, investors should remain vigilant to market volatility and sector-specific risks. Overall, UltraTech Cement remains a key large-cap player with a cautiously optimistic outlook as it navigates a transitional phase in its price momentum and valuation.

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