HDFC Asset Management Company Sees Robust Call Option Activity Amid Bullish Market Sentiment

Strong Call Option Trading Highlights Market Optimism

On 18 December 2025, HDFC Asset Management Company (HDFCAMC) recorded notable activity in call options expiring on 30 December 2025. The strike price of ₹2,700 attracted the highest number of contracts traded, with 4,973 contracts exchanging hands. This volume translated into a turnover of approximately ₹442.8 lakhs, underscoring the substantial liquidity and investor engagement in this segment.

The open interest at this strike price stood at 1,618 contracts, indicating a sustained interest in bullish positioning as traders anticipate the stock price to approach or surpass this level by expiry. The underlying stock value at the time was ₹2,651, placing the ₹2,700 strike slightly out-of-the-money but within reach given recent price trends.

Price Performance Signals Positive Momentum

HDFC Asset Management Company’s stock price demonstrated resilience on the trading day, outperforming its sector by 4.65%. The stock opened with a gap up of 2.43%, signalling strong buying interest from the outset. Intraday, it touched a high of ₹2,675.6, representing a 5.29% increase from the previous close. This price action followed a three-day period of consecutive declines, suggesting a potential trend reversal.

Technical indicators reveal the stock is trading above its 5-day, 20-day, and 200-day moving averages, which often serve as support levels for short- and long-term investors. However, it remains below the 50-day and 100-day moving averages, indicating some resistance in the medium term. This mixed technical picture may be contributing to the cautious yet optimistic positioning seen in the options market.

Investor Participation and Liquidity Considerations

Despite the positive price movement, delivery volumes on 17 December showed a decline of 52.31% compared to the five-day average, with 2.94 lakh shares delivered. This reduction in investor participation could reflect profit-booking or a wait-and-watch approach ahead of the expiry. Nevertheless, the stock maintains sufficient liquidity, with a trading value capacity of approximately ₹4.71 crore based on 2% of the five-day average traded value, facilitating sizeable trades without significant market impact.

Contextualising HDFC AMC’s Market Capitalisation and Sector Performance

HDFC Asset Management Company operates within the capital markets sector and holds a market capitalisation of approximately ₹1,09,369 crore, categorising it as a mid-cap entity. On the day in question, the stock’s return of 4.67% contrasted with the sector’s marginal decline of 0.26% and the broader Sensex’s fall of 0.25%. This relative outperformance highlights the stock’s appeal amid a generally subdued market environment.

The capital markets sector often experiences volatility linked to macroeconomic factors and regulatory developments. Against this backdrop, the active call option trading in HDFC AMC suggests that market participants are positioning for potential upside, possibly anticipating favourable developments or earnings outcomes in the near term.

Expiry Patterns and Strike Price Significance

The expiry date of 30 December 2025 is a critical juncture for option traders, as it marks the final day for exercising or closing positions. The concentration of call option contracts at the ₹2,700 strike price indicates a consensus around this level as a key resistance or target. Traders holding these contracts will be closely monitoring price movements in the coming days to decide on exercising or rolling over positions.

Open interest figures provide insight into the potential for price support or resistance. The 1,618 contracts open at the ₹2,700 strike suggest that a sizeable number of traders expect the stock to approach this level, which could influence price dynamics as expiry approaches.

Implications for Investors and Market Participants

The active call option trading in HDFC Asset Management Company reflects a market environment where investors are positioning for potential gains. The strike price of ₹2,700, slightly above the current underlying price, indicates expectations of upward movement within the next two weeks. This positioning may be driven by anticipated corporate announcements, sectoral trends, or broader market sentiment.

Investors should consider the mixed technical signals, including the stock’s position relative to various moving averages, and the recent dip in delivery volumes, which may suggest some caution among long-term holders. However, the strong intraday performance and option market activity point to a degree of confidence in the stock’s near-term prospects.

Given the stock’s liquidity and market capitalisation, HDFC AMC remains accessible for institutional and retail investors alike, with the derivatives market providing additional avenues for hedging or speculative strategies.

Summary

HDFC Asset Management Company’s recent market activity, particularly in call options expiring at the end of December, highlights a bullish sentiment among traders. The concentration of contracts at the ₹2,700 strike price, combined with the stock’s outperformance relative to its sector and the Sensex, suggests that market participants are anticipating positive developments. While some technical indicators present resistance levels, the overall positioning in the options market and price momentum indicate a cautiously optimistic outlook for the stock in the near term.

Market participants and investors should continue to monitor price action and open interest trends as the expiry date approaches, as these will provide further clues on the stock’s directional bias and potential volatility.

Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Claim Your Free Year →