Waaree Energies Ltd Sees Surge in Call Option Activity Ahead of March Expiry

Robust Call Option Activity Highlights Investor Confidence

On 27 February 2026, Waaree Energies Ltd (underlying symbol: WAAREEENER) witnessed an impressive 5,437 call option contracts traded at the 2800 strike price, set to expire on 30 March 2026. This activity generated a turnover of approximately ₹1123.69 lakhs, underscoring strong investor interest in leveraged bullish positions. The open interest for these contracts stands at 3,711, indicating sustained commitment from traders holding these options.

The underlying stock price closed at ₹2,738.50, just shy of the 2800 strike, suggesting that market participants are positioning for a potential upside move in the coming month. This level of call option activity is notable given the stock’s current trading below its short- and long-term moving averages, which may be interpreted as a contrarian bullish signal by some investors.

Price Performance and Technical Context

Waaree Energies outperformed its sector on the day, registering a 0.65% gain compared to the sector’s 1.16% decline and the Sensex’s 0.81% fall. The stock has recorded consecutive gains over the past two sessions, delivering a cumulative return of 1.07%. However, it remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating that the broader trend remains under pressure.

Investor participation, as measured by delivery volume, has shown a slight decline. On 26 February, delivery volume stood at 8.72 lakh shares, down 5.43% against the five-day average, signalling some hesitation among long-term holders. Despite this, liquidity remains robust, with the stock capable of supporting trade sizes up to ₹26.77 crore based on 2% of the five-day average traded value.

Fundamental Strength and Market Positioning

Waaree Energies operates within the Other Electrical Equipment industry and holds a mid-cap market capitalisation of ₹78,681.29 crore. The company’s recent upgrade from a Hold to a Buy rating by MarketsMOJO on 9 December 2025, accompanied by a Mojo Score of 78.0, reflects improving fundamentals and positive outlook. The Market Cap Grade of 2 further supports the stock’s mid-cap status, balancing growth potential with moderate risk.

Expiry Patterns and Strike Price Significance

The 30 March 2026 expiry date for the most active call options aligns with the end of the current quarterly cycle, a period often marked by increased volatility and strategic positioning. The 2800 strike price, slightly above the current market price, represents a key resistance level that traders expect the stock to challenge or surpass within the next month.

Open interest data reveals that traders are not only initiating new positions but also maintaining existing ones, which could translate into sustained momentum if the stock price moves favourably. This pattern is consistent with a bullish outlook, as investors seek to capitalise on potential upside while limiting downside risk through call options.

Sectoral and Market Comparisons

Within the Other Electrical Equipment sector, Waaree Energies’ outperformance is noteworthy. While the sector declined by 1.16% on the day, Waaree Energies managed a positive return, signalling relative strength. This divergence may attract further investor attention, especially given the company’s upgraded rating and improving mojo score.

Compared to the broader Sensex index, which fell by 0.81%, Waaree Energies’ resilience highlights its potential as a defensive growth stock amid market uncertainties. Investors looking for exposure to the electrical equipment space may find this stock’s current positioning and option market activity particularly compelling.

Investor Implications and Outlook

For investors, the surge in call option activity at the 2800 strike price suggests a growing consensus that Waaree Energies could breach this level within the next month. The stock’s recent upgrade to a Buy rating and a strong mojo score reinforce this positive outlook. However, the technical backdrop of trading below all major moving averages advises caution, as the stock may face resistance before confirming a sustained uptrend.

Liquidity remains sufficient to support sizeable trades, which is favourable for institutional investors and traders seeking to enter or exit positions without significant price impact. The slight decline in delivery volume may indicate some profit-taking or cautious positioning, but the overall trend in options activity points to a bullish bias.

Given the mid-cap nature of Waaree Energies and its sectoral positioning, investors should monitor upcoming quarterly results and sector developments closely. Any positive earnings surprises or favourable policy announcements could act as catalysts to propel the stock beyond the 2800 strike price, validating the current bullish sentiment reflected in the options market.

Conclusion

Waaree Energies Ltd’s prominence in the call options market, particularly at the 2800 strike price expiring in late March 2026, underscores a strong bullish positioning among investors. Supported by an upgraded rating, solid mojo score, and relative outperformance against sector and benchmark indices, the stock presents an intriguing opportunity for those seeking exposure to the Other Electrical Equipment industry. While technical indicators suggest some near-term resistance, the sustained open interest and turnover in call options highlight confidence in a potential upward move.

Investors should weigh these factors carefully, balancing the company’s fundamental strengths against prevailing market conditions and technical signals to make informed decisions.

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