Hindalco Industries Sees Robust Call Option Activity Amid Bullish Momentum

Robust Call Option Activity Highlights Investor Confidence

On 14 Jan 2026, Hindalco Industries Ltd witnessed an impressive 13,422 call option contracts traded at the 950 strike price, generating a turnover of ₹1802.98 lakhs. The open interest stands at 2,807 contracts, underscoring sustained investor interest ahead of the 27 Jan 2026 expiry. The underlying stock closed at ₹953.30, just marginally above the strike price, indicating that traders are positioning for a potential upward move in the coming weeks.

This surge in call option activity is particularly notable given the stock’s proximity to its 52-week high of ₹970.80, currently just 1.9% away. The active strike price of 950 aligns closely with the current market price, suggesting that investors are betting on the stock breaking through resistance levels and continuing its upward momentum.

Price Performance and Technical Strength

Hindalco has demonstrated consistent strength in recent sessions, gaining 5.74% over the last three trading days. On 14 Jan, the stock touched an intraday high of ₹959, marking a 2.42% increase from the previous close. Despite underperforming its sector by 0.39% on the day, the stock remains well-supported technically, trading above all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning reinforces the bullish outlook reflected in the options market.

The Aluminium & Aluminium Products sector, to which Hindalco belongs, has gained 2.5% recently, indicating a favourable industry backdrop. Rising investor participation is evident from the delivery volume of 57.53 lakh shares on 13 Jan, which surged 56.22% compared to the five-day average. Such heightened liquidity and participation provide a solid foundation for sustained price appreciation.

Fundamental Strength and Market Capitalisation

Hindalco Industries Ltd is a heavyweight in the Non-Ferrous Metals sector, boasting a market capitalisation of ₹2,12,206 crore, categorising it as a large-cap stock. The company’s Mojo Score currently stands at 78.0 with a Mojo Grade of Buy, reflecting a slight moderation from its previous Strong Buy rating as of 18 Nov 2025. This adjustment suggests a more measured but still positive outlook based on recent financial and operational metrics.

The company’s market cap grade is 1, indicating top-tier size and stability within its sector. Such credentials often attract institutional investors, which can further bolster liquidity and price stability, especially in derivative markets.

Options Expiry and Strike Price Dynamics

The expiry date of 27 Jan 2026 is a critical juncture for the stock’s options traders. The concentration of call options at the 950 strike price, which is slightly below the current underlying price, suggests that many investors expect the stock to maintain or exceed this level by expiry. This positioning is typically indicative of bullish sentiment, as traders anticipate upward price movement to capitalise on their call options.

Open interest of 2,807 contracts at this strike price further confirms that a significant number of traders are holding onto these positions, potentially setting the stage for increased volatility and price action as expiry approaches.

Sectoral Context and Comparative Performance

While Hindalco underperformed its sector by 0.39% on the day, the Aluminium & Aluminium Products sector’s 2.5% gain over recent sessions provides a supportive environment. The sector’s positive momentum is driven by improving demand fundamentals and favourable commodity price trends, which bode well for Hindalco’s earnings prospects.

Compared to the broader Sensex, which posted a modest 0.17% gain on the same day, Hindalco’s 1.95% return highlights its relative strength and investor preference within the metals space. This outperformance is likely to attract further attention from traders seeking exposure to cyclical recovery themes.

Investor Implications and Outlook

For investors and traders, the current call option activity in Hindalco Industries Ltd offers valuable insights into market expectations. The high volume and turnover at the 950 strike price suggest a consensus view that the stock will sustain or surpass this level in the near term. This is supported by the stock’s technical strength, rising delivery volumes, and sector tailwinds.

However, investors should remain mindful of potential volatility as the 27 Jan expiry approaches, especially given the stock’s proximity to its 52-week high. Profit booking or sector-specific risks could temper gains, although the overall trend remains constructive.

Given the company’s large-cap status, strong fundamentals, and positive mojo grading, Hindalco remains a compelling candidate for investors seeking exposure to the non-ferrous metals sector’s growth trajectory.

Summary

In summary, Hindalco Industries Ltd’s surge in call option trading activity reflects a bullish market stance supported by solid price performance, technical indicators, and sector momentum. The concentration of call options at the 950 strike price ahead of the 27 Jan 2026 expiry highlights investor confidence in the stock’s near-term upside potential. While some caution is warranted given the stock’s recent run-up, the overall outlook remains positive for this large-cap heavyweight in the non-ferrous metals industry.

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