HDFC Bank Sees Robust Call Option Activity Ahead of January Expiry

Strong Call Option Volumes Signal Bullish Sentiment

The most actively traded call options for HDFC Bank are clustered around strike prices from ₹930 to ₹960, all expiring on 27 January 2026. Notably, the ₹930 strike saw the highest number of contracts traded at 20,809, generating a turnover of approximately ₹1369.96 lakhs. This was closely followed by the ₹950 strike with 15,954 contracts and a turnover of ₹423.82 lakhs, and the ₹940 strike with 15,403 contracts traded, amounting to ₹657.40 lakhs in turnover.

Open interest figures further reinforce this bullish positioning. The ₹950 strike leads with an open interest of 19,577 contracts, indicating strong investor interest in this price level. The ₹940 and ₹960 strikes also show substantial open interest at 12,004 and 11,329 contracts respectively, suggesting that traders expect the stock to test or surpass these levels before expiry.

Underlying Stock Performance and Market Context

Despite the buoyant options activity, HDFC Bank’s stock price has experienced a slight decline, down 0.48% on the day, underperforming its previous 'Buy' rating which was downgraded to 'Hold' on 12 January 2026. The MarketsMOJO Mojo Score currently stands at 57.0, reflecting a moderate outlook. The downgrade reflects concerns over near-term price momentum as the stock trades below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a cautious technical stance.

However, the stock outperformed its sector by 0.65% on the day, and delivery volumes have risen by 23% against the five-day average, with 2.94 crore shares delivered on 16 January 2026. This increased investor participation suggests that while short-term technicals are weak, there remains underlying interest in the stock from longer-term holders.

Expiry Patterns and Strike Price Distribution

All the active call options are set to expire on 27 January 2026, indicating that traders are positioning for near-term moves. The concentration of activity around the ₹930 to ₹960 strikes, with the underlying stock at ₹928.45, suggests that investors are betting on a modest upside in the coming week. The ₹930 strike, being just above the current market price, is the most heavily traded, which is typical as traders seek to capitalise on small upward movements.

The turnover figures reveal that the ₹930 strike commands the largest monetary value in trades, highlighting its importance as a pivot point. Meanwhile, the ₹950 strike’s high open interest signals that many traders expect the stock to test this level, which would represent a roughly 2.3% gain from current prices. The ₹960 strike, although slightly further out of the money, also attracts significant interest, indicating some appetite for more aggressive bullish bets.

Technical and Fundamental Considerations

From a technical perspective, HDFC Bank’s trading below all major moving averages suggests a lack of short-term momentum. This could explain the recent downgrade from 'Buy' to 'Hold' by MarketsMOJO on 12 January 2026. The Market Cap Grade of 1 confirms its status as a large-cap stock with substantial liquidity, supporting the active options market.

Fundamentally, HDFC Bank remains a dominant player in the private sector banking industry with a market capitalisation of ₹14,28,227.23 crore. Despite the current technical weakness, the bank’s strong delivery volumes and relative outperformance versus its sector hint at underlying resilience. Investors appear to be using call options to hedge or speculate on a rebound, reflecting a nuanced market view.

Investor Implications and Outlook

For investors, the active call option market in HDFC Bank suggests a cautious but constructive stance. The concentration of open interest and turnover around strikes slightly above the current price indicates expectations of a moderate rally ahead of expiry. However, the downgrade to 'Hold' and the stock’s technical weakness counsel prudence.

Traders looking to capitalise on short-term volatility may find opportunities in the near-the-money call options, especially given the liquidity and turnover levels. Meanwhile, longer-term investors should weigh the fundamental strength of HDFC Bank against the current market sentiment and technical signals.

Overall, the options market activity provides a valuable barometer of investor sentiment, revealing a blend of optimism tempered by caution as the expiry date approaches.

Summary of Key Metrics:

• Underlying stock price: ₹928.45


• Most active call strikes: ₹930, ₹940, ₹950, ₹960


• Highest contracts traded: 20,809 at ₹930 strike


• Largest open interest: 19,577 at ₹950 strike


• Expiry date: 27 January 2026


• Mojo Score: 57.0 (Hold, downgraded from Buy on 12 Jan 2026)


• Market cap: ₹14,28,227.23 crore (Large Cap)


• Stock performance: Down 0.48% on day, outperformed sector by 0.65%

As expiry approaches, monitoring the evolving open interest and volume patterns will be crucial for gauging the stock’s near-term trajectory and investor conviction.

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