Hindalco Industries Sees Surge in Call Option Activity Ahead of March Expiry

Robust Call Option Trading Highlights Bullish Positioning

Among the most actively traded call options in the market, Hindalco’s call options with a strike price of ₹920 expiring on 30 March 2026 have attracted significant attention. A total of 3,893 contracts changed hands, generating a turnover of ₹839.06 lakhs. The open interest stands at 2,174 contracts, indicating sustained interest from traders holding bullish positions ahead of expiry.

The underlying stock price currently trades at ₹929.5, slightly above the ₹920 strike, suggesting that market participants are positioning for further upside. This activity reflects confidence in Hindalco’s near-term prospects within the non-ferrous metals sector, despite some recent headwinds.

Stock Performance and Technical Indicators

On 16 March 2026, Hindalco Industries recorded a day gain of 2.02%, outperforming its sector’s 1.68% rise and the Sensex’s modest 0.49% advance. This relative strength underscores the stock’s appeal amid broader market fluctuations.

Technically, the stock is trading above its 100-day and 200-day moving averages, signalling a long-term uptrend. However, it remains below its shorter-term 5-day, 20-day, and 50-day moving averages, indicating some near-term consolidation or profit-taking. This mixed technical picture suggests cautious optimism among investors.

Rising Investor Participation and Liquidity Support

Investor participation has surged, with delivery volumes reaching 47.06 lakh shares on 13 March 2026, a 53.58% increase compared to the five-day average. This heightened activity reflects growing conviction among shareholders and traders alike.

Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹12.55 crore based on 2% of the five-day average traded value. Such liquidity is crucial for institutional investors and large traders seeking to enter or exit positions without significant price impact.

Mojo Score Downgrade Reflects Caution Despite Positive Momentum

Hindalco’s mojo score currently stands at 57.0, with a mojo grade of Hold, downgraded from Buy on 18 November 2025. This adjustment reflects a more cautious outlook by MarketsMOJO analysts, who have factored in sectoral challenges and valuation concerns despite the stock’s large-cap status and strong market capitalisation of ₹2,04,374 crore.

The downgrade suggests that while the stock remains fundamentally sound, investors should be mindful of potential volatility and sector-specific risks, including commodity price fluctuations and global demand uncertainties impacting the non-ferrous metals industry.

Expiry Patterns and Strike Price Significance

The concentration of call option activity at the ₹920 strike price, close to the current market price, indicates a strategic positioning by traders expecting the stock to maintain or exceed this level by expiry. The expiry date of 30 March 2026 is critical, as it coincides with the end of the financial quarter, often a period of heightened volatility and portfolio rebalancing.

Open interest of 2,174 contracts at this strike suggests that many traders are either holding onto bullish bets or preparing to exercise options if the stock sustains gains. This dynamic could lead to increased price support near the strike level in the coming days.

Sectoral Context and Comparative Performance

Within the non-ferrous metals sector, Hindalco’s outperformance relative to its peers and the broader Sensex highlights its relative strength. The sector has been navigating mixed demand signals globally, with supply chain disruptions and raw material cost pressures impacting margins.

Hindalco’s ability to outperform by 0.56% against its sector on the day reflects investor preference for its diversified product portfolio and operational efficiencies. However, the Hold mojo grade signals that investors should weigh these positives against macroeconomic uncertainties.

Investor Takeaway: Balanced Optimism with Vigilance

Hindalco Industries’ recent surge in call option volumes and positive price action suggest that market participants are positioning for continued strength in the near term. The stock’s technical setup, combined with rising delivery volumes and liquidity, supports this bullish stance.

However, the downgrade to a Hold mojo grade and the mixed moving average signals counsel prudence. Investors should monitor sector developments, commodity price trends, and global economic indicators closely before committing significant capital.

For traders, the active call options at the ₹920 strike provide a clear focal point for potential price support and upside targets as expiry approaches. Those bullish on Hindalco may consider these options as part of a strategic play, while risk-averse investors might await further confirmation of trend sustainability.

Conclusion

In summary, Hindalco Industries Ltd is currently a focal point for call option traders, reflecting a cautiously optimistic market view. The stock’s outperformance relative to sector and benchmark indices, combined with strong option market activity, underscores its importance in the non-ferrous metals space. Yet, investors should balance this enthusiasm with the recent mojo grade downgrade and evolving market conditions to make informed decisions.

Limited Period Only. Get Started for only Rs. 16,999 - Get MojoOne for 2 Years + 1 Year Absolutely FREE! (72% Off) Get 72% Off →