Robust Call Option Activity Highlights Bullish Positioning
On 14 Jan 2026, Union Bank of India’s call options with a strike price of ₹180 and expiry on 27 Jan 2026 recorded an impressive 21,114 contracts traded. This translated into a turnover of approximately ₹3185.94 lakhs, underscoring significant investor interest in leveraged bullish bets. The open interest stood at 2,224 contracts, indicating sustained positions rather than short-term speculative trades.
The underlying stock price closed at ₹178.02, just shy of the call strike price, suggesting that traders are positioning for a potential breakout above this key resistance level before the January expiry. The concentration of volume near the ₹180 strike price reflects a consensus expectation of further upside in the coming weeks.
Price Momentum and Technical Strength
Union Bank’s stock has demonstrated strong technical momentum, outperforming its public sector banking peers by 5.77% on the day. The stock has gained 10.27% over the last four consecutive trading sessions, signalling sustained buying interest. Intraday, the share price touched a high of ₹180, marking a fresh 52-week peak and confirming the bullish trend.
Notably, the stock is trading above all major moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – which is a classic indicator of a strong uptrend. Rising delivery volumes, which increased by 7.48% to 67.4 lakh shares on 13 Jan compared to the five-day average, further validate the conviction among long-term investors.
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Market Capitalisation and Quality Assessment
Union Bank of India is classified as a large-cap stock with a market capitalisation of ₹1,26,374 crore. Despite its size, the stock currently holds a Mojo Score of 64.0, which corresponds to a ‘Hold’ grade. This represents a downgrade from a previous ‘Buy’ rating assigned on 28 Oct 2025, reflecting a more cautious stance amid evolving market conditions.
The bank’s market cap grade is 1, indicating it is among the largest and most liquid stocks in its sector. Liquidity metrics support sizeable trade executions, with the stock’s average traded value allowing for trade sizes up to ₹4.56 crore without significant market impact. This liquidity is crucial for options traders who require efficient entry and exit points.
Sector and Benchmark Comparison
On the day of analysis, Union Bank’s stock delivered a 7.20% return, significantly outperforming the public sector banking sector’s 1.46% gain and the broader Sensex, which declined by 0.23%. This relative strength highlights the bank’s leadership within its industry group and its appeal as a preferred large-cap banking stock.
Such outperformance often attracts derivative traders seeking to capitalise on momentum, which is evident in the elevated call option volumes and open interest. The expiry date of 27 Jan 2026 is approaching, and the concentration of call options at the ₹180 strike price suggests that market participants are betting on a continuation of the rally into the final weeks of the month.
Investor Sentiment and Delivery Volumes
Investor participation has been on the rise, as evidenced by the increased delivery volumes. The 7.48% rise in delivery volume on 13 Jan compared to the five-day average indicates that more investors are holding shares rather than engaging in intraday trading. This shift towards accumulation supports the bullish narrative and reduces the likelihood of a sharp reversal in the near term.
Moreover, the weighted average price of traded volumes skewing closer to the day’s low suggests that buyers are entering positions at relatively conservative price points, which may provide a cushion against volatility.
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Outlook and Strategic Considerations for Investors
Given the current market dynamics, Union Bank of India presents a compelling case for investors with a moderately bullish outlook. The strong call option activity at the ₹180 strike price ahead of the 27 Jan expiry indicates expectations of further price appreciation. However, the recent downgrade from ‘Buy’ to ‘Hold’ by MarketsMOJO suggests that investors should remain vigilant and monitor key technical levels and sector developments.
Investors should also consider the broader macroeconomic environment and regulatory factors impacting public sector banks. While Union Bank’s liquidity and market cap provide a stable foundation, valuation metrics and risk factors must be weighed carefully before increasing exposure.
Options traders, in particular, may find opportunities in the current elevated open interest and turnover, but should be mindful of expiry-related volatility and potential profit-taking near the ₹180 strike price.
Summary
Union Bank of India’s recent surge in call option volumes and fresh 52-week highs underscore a bullish sentiment among market participants. The stock’s outperformance relative to its sector and the Sensex, combined with strong technical indicators and rising delivery volumes, support a positive near-term outlook. Nevertheless, the downgrade to a ‘Hold’ rating and the approaching expiry date warrant cautious optimism. Investors and traders alike should balance the evident momentum with prudent risk management strategies.
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