UltraTech Cement Sees Robust Call Option Activity Amid Bullish Momentum

Robust Call Option Volumes Highlight Investor Optimism

On 27 January 2026, UltraTech Cement’s call options expiring the same day saw heavy activity, particularly at the ₹12,800 and ₹13,000 strike prices. The ₹12,800 call recorded 3,453 contracts traded, generating a turnover of ₹86.39 lakhs with an open interest of 835 contracts. Meanwhile, the ₹13,000 call option was even more active, with 4,500 contracts traded and a turnover of ₹31.77 lakhs, alongside a higher open interest of 1,652 contracts. This concentration of activity near the current underlying value of ₹12,718 suggests traders are positioning for a potential upside move in the immediate term.

Looking further ahead, the February expiry on 24 February 2026 also attracted significant call option interest at the ₹13,000 strike, with 4,862 contracts traded and a substantial turnover of ₹700.39 lakhs. The open interest of 1,207 contracts at this strike price indicates sustained bullish sentiment extending beyond the near-term expiry, reflecting confidence in UltraTech Cement’s price appreciation potential over the coming weeks.

Price Action and Technical Indicators Support Positive Outlook

UltraTech Cement’s stock price has been on a steady ascent, gaining 5.46% over the past four consecutive trading sessions. On 27 January, the stock outperformed its sector by 0.54%, closing just 2.99% shy of its 52-week high of ₹13,097. Intraday, it touched a high of ₹12,825, marking a 3.69% increase from the previous close. The stock is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong upward momentum and technical strength.

Investor participation has also risen, with delivery volumes on 23 January reaching 2.31 lakh shares, an 8.66% increase compared to the five-day average. This heightened liquidity, supported by a traded value capacity of approximately ₹7.57 crore based on 2% of the five-day average, ensures that the stock remains accessible for sizeable trades without significant price impact.

Mojo Score Downgrade Contrasts with Market Activity

Despite the bullish option activity and positive price momentum, UltraTech Cement’s Mojo Score currently stands at 48.0, categorised as a Sell grade as of 3 December 2025, down from a previous Hold rating. The downgrade reflects concerns over certain fundamental or valuation metrics, with the company receiving a Market Cap Grade of 1, indicating a large-cap status but possibly signalling valuation pressures or sector headwinds.

This divergence between technical optimism and fundamental caution suggests that while traders are betting on near-term price gains, longer-term investors may be more circumspect. The cement sector itself has been volatile, influenced by fluctuating input costs and demand cycles, which could explain the cautious stance from rating agencies despite the stock’s recent outperformance.

Sector and Benchmark Comparisons Reinforce UltraTech’s Relative Strength

On the day of the reported option activity, UltraTech Cement delivered a 2.79% return, outperforming the Cement & Cement Products sector’s 2.04% gain and significantly surpassing the Sensex’s modest 0.37% rise. This relative strength underscores the stock’s appeal amid broader market conditions and sector dynamics.

Given its market capitalisation of ₹3,64,468 crore, UltraTech remains a heavyweight in the cement industry, commanding investor attention. The stock’s proximity to its 52-week high and sustained volume increases suggest that market participants are positioning for continued momentum, at least in the short term.

Expiry Patterns and Strike Price Concentration Indicate Strategic Positioning

The clustering of call option trades around the ₹13,000 strike price for both January and February expiries is particularly telling. The January 27 expiry options show a combined total of 9,312 contracts traded across the ₹12,800 and ₹13,000 strikes, while the February 24 expiry alone saw 4,862 contracts at ₹13,000. This pattern suggests that traders are not only betting on a near-term breakout but also maintaining bullish exposure into the next month.

Open interest figures reinforce this view, with the ₹13,000 strike for January expiry holding 1,652 contracts and February expiry at 1,207 contracts. Such open interest levels indicate that many positions remain open, reflecting sustained confidence or hedging strategies anticipating upward price movement.

Balancing Bullish Sentiment with Fundamental Caution

While the technical and options market data point to a positive near-term outlook, investors should weigh these signals against the fundamental downgrade and sector risks. The cement industry faces challenges such as raw material cost inflation, regulatory changes, and cyclical demand fluctuations, which could temper gains if broader economic conditions deteriorate.

Nevertheless, UltraTech Cement’s strong liquidity, rising delivery volumes, and consistent price gains over recent sessions provide a compelling case for traders seeking momentum plays. The stock’s ability to sustain levels above key moving averages further supports the bullish narrative, at least in the short to medium term.

Conclusion: A Stock at a Crossroads

UltraTech Cement Ltd currently stands at an intriguing juncture. Heavy call option activity and robust price momentum suggest that market participants are positioning for further upside, particularly around the ₹13,000 strike price in the near-term expiries. However, the recent downgrade in Mojo Grade to Sell and the inherent sector risks counsel caution for longer-term investors.

For traders, the stock offers a liquid and technically strong vehicle to capitalise on bullish sentiment. For fundamental investors, a careful analysis of valuation and sector outlook remains essential before committing fresh capital.

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