Waaree Energies Ltd Sees Surge in Call Option Activity Amid Bullish Market Sentiment

Robust Call Option Volumes Highlight Investor Confidence

On 22 January 2026, Waaree Energies Ltd (underlying symbol: WAAREEENER) emerged as one of the most actively traded stocks in the call options segment. The expiry date of 27 January 2026 has attracted substantial interest, with multiple strike prices seeing heavy contract volumes. Notably, the 27 January expiry witnessed the highest activity at the 2700 strike price, where 17,845 contracts were traded, generating a turnover of ₹1803.46 lakhs and an open interest of 1,900 contracts.

Other strike prices with significant call option activity include 2800, with 14,360 contracts traded and an open interest of 2,044, and 2650, where 8,274 contracts changed hands. The underlying stock price stood at ₹2,687.7, indicating that investors are positioning for a potential upside beyond current levels.

Strike Price Distribution and Expiry Patterns

The concentration of call option volumes at strike prices ranging from 2600 to 2800 suggests a bullish sentiment with expectations of the stock breaching these levels in the near term. The 2600 strike saw 7,189 contracts traded with a turnover of ₹1,214.04 lakhs, while the 2750 strike recorded 8,025 contracts and ₹638.99 lakhs in turnover. This distribution indicates a layered approach by traders, balancing risk and reward across multiple price points.

Open interest figures further reinforce this view, with the highest open interest at the 2800 strike price (2,044 contracts), followed closely by the 2700 strike. Such elevated open interest near and above the current market price often signals strong conviction in upward price movement ahead of expiry.

Stock Performance and Market Context

Waaree Energies Ltd has outperformed its sector by 8.11% on the day, registering a 12.21% gain compared to the Renewable Energy sector’s 2.04% rise and the Sensex’s modest 0.96% increase. The stock opened with a gap up of 6.04% and touched an intraday high of ₹2,660.9, reflecting strong buying interest.

Despite the recent rally, the weighted average price indicates that more volume traded closer to the low price of the day, suggesting some profit booking or cautious accumulation. The stock currently trades above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a potential trend reversal in progress.

Investor participation has also risen notably, with delivery volumes on 21 January reaching 3.65 lakh shares, a 23.1% increase over the five-day average. This heightened liquidity, with a trade size capacity of ₹7.44 crore based on 2% of the five-day average traded value, supports active market engagement and ease of execution for larger trades.

Mojo Score Upgrade Reflects Improving Fundamentals

Waaree Energies Ltd’s recent upgrade from a Hold to a Buy rating by MarketsMOJO on 9 December 2025, with a Mojo Score of 78.0, reflects improving fundamentals and positive market outlook. The company’s market capitalisation stands at ₹78,077.25 crore, categorising it as a mid-cap stock within the Other Electrical Equipment sector.

The upgrade is supported by enhanced financial metrics and quality grades, signalling a favourable risk-reward profile for investors. The stock’s market cap grade of 2 indicates moderate size with potential for growth, aligning well with the bullish option positioning observed in the derivatives market.

Sectoral Tailwinds and Investor Sentiment

The Renewable Energy sector has gained 2.04% on the day, buoyed by government initiatives and increasing demand for sustainable energy solutions. Waaree Energies Ltd, as a key player in Other Electrical Equipment, is well positioned to capitalise on this trend, attracting investor interest both in the cash and derivatives markets.

Market participants appear to be anticipating further price appreciation, as evidenced by the heavy call option volumes at strike prices above the current market level. This bullish positioning is consistent with the stock’s recent trend reversal after two days of consecutive declines, signalling renewed momentum.

Implications for Investors and Traders

The surge in call option activity at multiple strike prices ahead of the 27 January expiry suggests that traders are positioning for a near-term rally in Waaree Energies Ltd. The elevated open interest at strikes above the current price level indicates confidence in the stock’s ability to breach these thresholds, potentially driven by positive sectoral dynamics and company-specific catalysts.

Investors should monitor the stock’s movement relative to key moving averages and volume trends to gauge the sustainability of the current momentum. The combination of strong delivery volumes and rising liquidity supports a healthy trading environment, though cautious profit-taking near resistance levels cannot be ruled out.

Given the recent upgrade to a Buy rating and the robust Mojo Score, Waaree Energies Ltd presents an attractive proposition for investors seeking exposure to the renewable energy space with a mid-cap growth profile. However, as with all derivatives trading, risk management remains paramount, especially with options expiring imminently.

Conclusion

Waaree Energies Ltd’s pronounced call option activity ahead of the 27 January 2026 expiry, combined with its recent price performance and fundamental upgrade, highlights a strong bullish sentiment among market participants. The stock’s positioning within the growing renewable energy sector and its improving financial outlook make it a focal point for investors and traders alike. Close attention to option open interest and strike price distribution will provide valuable insights into evolving market expectations in the coming days.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →