Hindalco Industries Sees Robust Call Option Activity Amid Bullish Momentum

Strong Call Option Interest at ₹880 Strike

The most actively traded call options for Hindalco are centred around the ₹880 strike price, with expiry set for 27 January 2026. On this date, a substantial 5,890 contracts changed hands, generating a turnover of ₹1164.34 lakhs. Open interest currently stands at 2,634 contracts, indicating a robust build-up of positions ahead of the expiry. This level of activity suggests that market participants are anticipating further upside potential in the stock price over the coming weeks.

Underlying Stock Performance and Technical Strength

Hindalco’s underlying share price closed at ₹884.35, marginally below the strike price of the most active call options. The stock has been on a positive trajectory, gaining 2.31% over the last two trading sessions. It is trading comfortably above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a strong technical setup. This alignment of moving averages often acts as a bullish signal for traders and investors alike.

Investor participation has surged notably, with delivery volumes on 30 December reaching 1.2 crore shares, a remarkable 289.88% increase compared to the five-day average. Such heightened delivery volumes reflect genuine buying interest rather than speculative intraday trading, reinforcing the conviction behind the recent price gains.

Sector and Market Context

Hindalco’s performance today was broadly in line with its sector peers, with the non-ferrous metals sector registering a 0.07% gain. The Sensex outperformed with a 0.50% rise, but Hindalco’s 0.08% gain demonstrates resilience amid broader market movements. The company’s large-cap status, with a market capitalisation of ₹1,98,003 crore, ensures ample liquidity, supporting sizeable trade volumes without significant price impact. The stock’s liquidity allows for trade sizes up to ₹13.08 crore based on 2% of the five-day average traded value, making it attractive for institutional investors and high-net-worth individuals.

Mojo Score and Analyst Ratings

Hindalco currently holds a Mojo Score of 78.0, reflecting a strong buy recommendation from MarketsMOJO’s proprietary rating system. The Mojo Grade was recently adjusted from a Strong Buy to a Buy on 18 November 2025, signalling a slight moderation in bullishness but maintaining a positive outlook. The company’s Market Cap Grade is 1, indicating its large-cap stature and stable market presence. These ratings are supported by solid fundamentals and technical indicators, making Hindalco a preferred pick within the non-ferrous metals sector.

Expiry Patterns and Investor Positioning

The January 2026 expiry cycle is attracting considerable attention, with the ₹880 strike price serving as a focal point for bullish bets. The high open interest and turnover at this strike suggest that investors are positioning for a potential breakout above current levels. Given the stock’s recent all-time high and strong technical momentum, traders appear confident in further gains, possibly targeting levels beyond ₹900 in the near term.

Such call option activity often precedes significant price moves, as it reflects market expectations of upward volatility. The combination of rising delivery volumes, sustained price appreciation, and active options trading paints a picture of a stock in demand among both retail and institutional participants.

Risk Considerations and Market Volatility

While the bullish signals are compelling, investors should remain mindful of broader market volatility and sector-specific risks. The non-ferrous metals industry is sensitive to global commodity prices, currency fluctuations, and geopolitical developments. Any adverse shifts in these factors could temper Hindalco’s momentum. Additionally, the slight downgrade from Strong Buy to Buy in the Mojo Grade suggests a cautious approach, recognising that valuations may be stretched at current levels.

Nevertheless, the stock’s strong technical foundation and active call option interest provide a favourable risk-reward profile for investors with a medium-term horizon.

Outlook and Investor Takeaways

Hindalco Industries Ltd’s recent price action and options market behaviour indicate a bullish consensus among investors. The stock’s ability to sustain gains above key moving averages, coupled with rising delivery volumes and active call option trading at the ₹880 strike, suggests confidence in further appreciation. Market participants should monitor the January 2026 expiry closely, as it may serve as a catalyst for directional moves.

Investors considering exposure to Hindalco should weigh the positive technical and fundamental signals against sectoral risks and valuation considerations. The current Mojo Score and Buy rating support a constructive stance, but prudent risk management remains essential in the face of potential market fluctuations.

Overall, Hindalco’s strong market positioning, liquidity, and investor interest make it a compelling candidate for those seeking growth opportunities within the non-ferrous metals space.

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