Robust Call Option Volumes Signal Bullish Sentiment
Data from the derivatives market reveals that Hindalco’s call options with a strike price of ₹1,000 expiring on 24 February 2026 have emerged as the most actively traded contracts. A total of 5,449 contracts changed hands, generating a turnover of approximately ₹1071.44 lakhs. Open interest stands at 1,917 contracts, indicating sustained investor interest and potential build-up of bullish positioning ahead of expiry.
The underlying stock closed at ₹973.65, just 0.56% shy of its 52-week high of ₹985, underscoring the proximity to a key resistance level. The strike price of ₹1,000 is psychologically significant and suggests that traders are positioning for a breakout above this threshold in the coming weeks.
Price Action and Technical Indicators Support Positive Outlook
Hindalco has been on a steady upward trajectory, gaining 5.54% over the last five trading sessions. On 27 January 2026, the stock touched an intraday high of ₹984.7, marking a 2.38% rise on the day. Despite underperforming its sector by 0.77% on the same day, the stock’s overall trend remains constructive.
Technical analysis confirms that Hindalco is trading above all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling strong momentum and investor confidence. The Aluminium & Aluminium Products sector itself has gained 2.5% recently, providing a supportive backdrop for Hindalco’s shares.
Investor participation has also intensified, with delivery volumes surging to 54.13 lakh shares on 27 January, a 59.74% increase compared to the five-day average. This heightened liquidity, combined with a daily traded value sufficient to support trades up to ₹12.95 crore, ensures smooth execution for institutional and retail investors alike.
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Mojo Score and Market Capitalisation Reflect Strong Fundamentals
Hindalco Industries Ltd holds a Mojo Score of 75.0, categorised as a Buy rating, following a recent downgrade from Strong Buy on 18 November 2025. This adjustment reflects a more measured optimism amid evolving market conditions but still underscores the company’s solid fundamentals and growth prospects.
The company’s market capitalisation stands at a substantial ₹2,16,183 crore, placing it firmly in the large-cap segment. Its Market Cap Grade is rated 1, indicating top-tier size and liquidity, which is attractive for institutional investors seeking stable exposure in the non-ferrous metals sector.
Options Expiry Patterns and Investor Positioning
The concentration of call option activity at the ₹1,000 strike price for the February expiry suggests that market participants are anticipating a potential upside breakout. The open interest of 1,917 contracts at this strike is significant, as it represents a sizeable pool of investors betting on the stock surpassing this level within the next month.
Such positioning often precedes increased volatility and volume as expiry approaches, with traders adjusting their holdings to capitalise on expected price movements. The combination of strong technicals, rising delivery volumes, and active options trading points to a bullish consensus among market participants.
However, investors should remain cautious of potential profit-taking or sector-wide corrections, especially given the stock’s recent outperformance relative to the Sensex, which gained 0.52% on the same day. Hindalco’s one-day return of 1.36% trails the Aluminium sector’s 2.55% gain, indicating room for catch-up or consolidation.
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Sector Outlook and Broader Market Context
The non-ferrous metals sector, particularly aluminium, has been buoyed by improving demand fundamentals and supply-side constraints globally. Hindalco, as a key player, stands to benefit from rising aluminium prices and increased industrial activity.
While the stock’s recent gains reflect this positive environment, investors should monitor global commodity trends, currency fluctuations, and domestic policy developments that could impact margins and earnings.
Given the stock’s liquidity and active options market, traders have ample opportunity to implement varied strategies, from outright bullish calls to hedged positions, depending on risk appetite and market outlook.
Conclusion: Strategic Positioning Ahead of Expiry
Hindalco Industries Ltd’s surge in call option volumes at the ₹1,000 strike price ahead of the 24 February 2026 expiry highlights a growing bullish sentiment among investors. Supported by strong technical indicators, rising delivery volumes, and a solid fundamental backdrop, the stock appears poised for potential upside in the near term.
However, market participants should remain vigilant of sector dynamics and broader market volatility that could influence price action. The current Mojo Buy rating and large-cap status provide a degree of confidence, but prudent risk management remains essential.
Overall, Hindalco’s active options market and positive price momentum make it a key stock to watch as expiry approaches, offering both opportunities and challenges for investors seeking exposure to the non-ferrous metals space.
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