Surge in Call Option Trading Highlights Investor Optimism
On 6 January 2026, Hindalco witnessed the most active call options trading with the January expiry series drawing particular attention. The call options at the ₹950 strike price saw a remarkable 6,633 contracts traded, generating a turnover of ₹1,211.85 lakhs. Open interest stood at 1,663 contracts, signalling robust participation and a strong bullish positioning ahead of the expiry on 27 January 2026.
The underlying stock price at ₹956.95 is trading just above the ₹950 strike, indicating that traders are positioning for further upside potential. This activity suggests that market participants expect Hindalco to maintain or exceed current levels in the near term, supported by favourable fundamentals and technical momentum.
Price Performance and Technical Strength
Hindalco Industries has been on a consistent upward trajectory, gaining 10.39% over the past six trading sessions. The stock’s intraday high of ₹958.5 on the day marks a fresh 52-week and all-time high, underscoring strong buying interest. It is trading comfortably above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which collectively reinforce the bullish technical setup.
In comparison, the Aluminium & Aluminium Products sector has advanced by 3.17% on the same day, while Hindalco’s 1-day return of 2.49% remains inline with sectoral gains. The broader Sensex, however, declined by 0.20%, highlighting Hindalco’s relative strength amid mixed market conditions.
Market Capitalisation and Quality Metrics
Hindalco is classified as a large-cap stock with a market capitalisation of ₹2,14,587.66 crores. The company holds a Mojo Score of 78.0 and a Mojo Grade of Buy, reflecting solid fundamentals and positive outlook. Notably, this represents a slight downgrade from a previous Strong Buy rating assigned on 18 November 2025, signalling a cautious but still optimistic stance by analysts.
The stock’s market cap grade is 1, indicating its position among the top-tier companies in its industry. Despite a recent dip in delivery volumes — down 27.46% against the 5-day average to 34.69 lakh shares on 5 January — liquidity remains adequate, with the stock supporting trade sizes up to ₹11.78 crores based on 2% of the 5-day average traded value.
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Expiry Patterns and Strike Price Concentration
The concentration of call option activity at the ₹950 strike price for the 27 January expiry is particularly telling. This strike is slightly out-of-the-money relative to the current underlying price, suggesting traders are betting on continued upward momentum over the next three weeks. The sizeable open interest of 1,663 contracts at this strike further confirms that investors are positioning for a potential breakout or sustained rally.
Such expiry patterns often indicate a strategic build-up of bullish bets, as traders seek to capitalise on expected positive catalysts or sector tailwinds. Given Hindalco’s recent price strength and sectoral gains, this positioning aligns with a broader market consensus favouring the stock’s near-term prospects.
Sectoral Context and Comparative Analysis
Within the non-ferrous metals industry, Hindalco stands out as a leading player benefiting from rising aluminium prices and improving demand fundamentals. The Aluminium & Aluminium Products sector’s 3.17% gain on the day reflects a positive macro environment, which is likely to support Hindalco’s earnings growth and valuation multiples.
Compared to the broader market, Hindalco’s outperformance is notable. While the Sensex declined marginally, Hindalco’s gains and active call option interest underscore its appeal as a preferred stock among institutional and retail investors alike.
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Investor Sentiment and Outlook
Investor sentiment towards Hindalco remains predominantly positive, as evidenced by the sustained price gains and active derivatives market participation. The downgrade from Strong Buy to Buy on 18 November 2025 appears to reflect a prudent reassessment rather than a fundamental shift, with the company maintaining a robust Mojo Score of 78.0.
Looking ahead, the stock’s ability to sustain above key moving averages and hold above the ₹950 strike price will be critical. Any further sectoral tailwinds or positive earnings surprises could accelerate the bullish momentum, potentially driving the stock towards new highs.
However, investors should remain mindful of the recent decline in delivery volumes, which may indicate some caution among long-term holders. Monitoring open interest trends and expiry dynamics will provide additional clues on the evolving market consensus.
Conclusion
Hindalco Industries Ltd’s active call option trading, combined with its strong price performance and favourable sectoral environment, positions it as a compelling stock for investors seeking exposure to the non-ferrous metals space. The concentration of call options at the ₹950 strike price for the January expiry highlights a clear bullish bias, supported by solid fundamentals and technical strength.
While the recent rating adjustment suggests a tempered outlook, the overall market sentiment remains constructive. Investors should continue to track derivatives activity and price action closely to capitalise on emerging opportunities in this large-cap heavyweight.
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