Hindalco Industries Sees Surge in Call Option Activity Amid Bullish Momentum

Robust Price Performance and Market Position

Hindalco Industries, a leading player in the non-ferrous metals industry, has been on a steady upward trajectory, outperforming its sector peers and the broader market. On 29 Jan 2026, the stock touched an intraday high of ₹1,027.5, marking a fresh 52-week and all-time high. This represents a 2.94% gain on the day and a notable 10.56% return over the past six consecutive trading sessions.

The stock’s resilience is further underscored by its trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained upward momentum. Compared to the Aluminium & Aluminium Products sector, which gained 2.41% on the day, Hindalco outperformed by 0.57%, while the Sensex declined by 0.48%, highlighting its relative strength.

Investor participation has surged, with delivery volumes reaching 77.62 lakh shares on 28 Jan, a 94.09% increase over the five-day average. This heightened liquidity supports larger trade sizes, with the stock’s average traded value allowing for transactions up to ₹16.05 crore without impacting market prices significantly.

Call Option Activity Highlights Bullish Positioning

The most active call options for Hindalco are concentrated around the 24 Feb 2026 expiry, with the 1,020 strike price attracting the highest volume. On this expiry date, 4,557 contracts were traded, generating a turnover of ₹1,219.82 lakh. Open interest stands at 1,111 contracts, indicating sustained interest and potential for further price movement.

Given the underlying stock price of ₹1,016.1, the 1,020 strike calls are positioned near-the-money, suggesting traders are anticipating further upside in the near term. The heavy call option volume and turnover reflect a predominantly bullish outlook, with market participants likely expecting the stock to breach this strike price before expiry.

This surge in call option activity often precedes significant price moves, as investors hedge or speculate on upward trends. The combination of rising open interest and high contract turnover at this strike price signals confidence in Hindalco’s continued strength.

Mojo Score and Analyst Ratings

Hindalco’s current Mojo Score stands at 75.0, reflecting a strong buy recommendation, albeit a slight downgrade from its previous “Strong Buy” grade as of 18 Nov 2025. This adjustment suggests a cautious but positive outlook, factoring in recent price gains and sector dynamics. The company holds a Market Cap Grade of 1, categorising it as a large-cap stock with substantial market presence and liquidity.

Analysts highlight Hindalco’s solid fundamentals, including its leadership in the non-ferrous metals sector and its ability to capitalise on rising aluminium demand globally. The stock’s consistent outperformance relative to sector peers and the Sensex reinforces its appeal to institutional and retail investors alike.

Sectoral Context and Industry Trends

The Aluminium & Aluminium Products sector has gained 2.41% recently, buoyed by improving global commodity prices and supply chain normalisation. Hindalco, as a key player, benefits from these tailwinds, with its integrated operations spanning mining, smelting, and downstream products.

Market participants are closely monitoring raw material costs, energy prices, and geopolitical developments that could impact aluminium supply-demand dynamics. Hindalco’s diversified business model and cost efficiencies position it favourably to navigate these challenges while capturing growth opportunities.

Expiry Patterns and Trading Strategies

The 24 Feb 2026 expiry date for the most active call options aligns with typical monthly expiry cycles, providing traders with a near-term horizon to capitalise on expected price movements. The concentration of activity at the 1,020 strike price suggests a consensus target level, with investors positioning for a breakout above this threshold.

Such option activity often indicates hedging by institutional players or speculative bets by retail traders anticipating continued momentum. The open interest data supports the view that these positions are not merely short-term trades but part of a broader strategic outlook on Hindalco’s price trajectory.

Investor Implications and Outlook

For investors, the current scenario presents a compelling case to consider Hindalco as a core holding within the non-ferrous metals space. The stock’s strong technical setup, combined with bullish options market positioning, suggests potential for further appreciation in the coming weeks.

However, investors should remain mindful of broader macroeconomic factors such as commodity price volatility, currency fluctuations, and regulatory developments that could influence performance. The recent downgrade from “Strong Buy” to “Buy” reflects a prudent approach to valuation and risk management.

Overall, Hindalco’s blend of operational strength, sector tailwinds, and active market participation in derivatives markets underscores its attractiveness for medium to long-term investors seeking exposure to aluminium and related metals.

Summary

Hindalco Industries Ltd is currently experiencing heightened call option activity, particularly at the 1,020 strike price expiring on 24 Feb 2026, signalling bullish investor sentiment. The stock’s recent price performance, including a new 52-week high and consistent gains over six sessions, is supported by strong fundamentals and sector momentum. While the Mojo Score indicates a “Buy” rating, the stock remains a key focus for investors looking to capitalise on the aluminium sector’s growth prospects.

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