Robust Call Option Volumes Highlight Investor Interest
Data from the latest trading session shows that HAL’s most actively traded call options are concentrated at strike prices of ₹4,700, ₹5,000, and ₹5,200, all expiring on 24 February 2026. The ₹4,700 strike call led the pack with 13,908 contracts traded, generating a turnover of ₹4,073.10 lakhs and an open interest of 4,132 contracts. This is particularly significant given the underlying stock price of ₹4,687, indicating that investors are positioning for a modest upside in the coming weeks.
The ₹5,000 strike call saw 9,238 contracts traded, with turnover reaching ₹1,341.36 lakhs and open interest standing at 4,770 contracts. Meanwhile, the ₹5,200 strike call, though less active, still recorded 7,204 contracts traded and a turnover of ₹644.36 lakhs, with open interest at 2,810 contracts. The concentration of open interest at these higher strike prices suggests a strategic bet on the stock breaking above these levels before expiry.
Underlying Stock Performance and Technical Indicators
HAL’s underlying stock price has been on a steady upward trajectory, gaining 1.74% on the day, though it slightly underperformed its sector’s 2.07% gain. The stock has recorded consecutive gains over the past two days, delivering a cumulative return of 2%. Notably, HAL is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong technical foundation for further upside.
Investor participation has also been on the rise, with delivery volumes hitting 7.35 lakh shares on 30 January, a 29.91% increase compared to the five-day average. This heightened liquidity, supported by a 2% average traded value equating to ₹12.6 crore, ensures that the stock remains accessible for sizeable trades without significant price impact.
Mojo Score Downgrade and Market Cap Considerations
Despite the bullish options activity, HAL’s Mojo Score currently stands at 44.0, reflecting a Sell rating, downgraded from Hold on 27 January 2026. The downgrade is influenced by a Market Cap Grade of 1, indicating that while HAL is a large-cap stock with a market capitalisation of ₹3,12,957 crore, certain fundamental or valuation metrics have deteriorated. This divergence between options market optimism and fundamental grading suggests a nuanced outlook among investors, with some speculating on short-term gains while others remain cautious.
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Expiry Patterns and Strategic Positioning
The clustering of call option activity around the 24 February expiry is consistent with typical market behaviour as investors position ahead of quarterly results, government defence budget announcements, or contract wins that could materially impact HAL’s valuation. The strike prices chosen indicate a range of bullish scenarios, from a moderate rally to a more aggressive upside breakout.
Open interest figures reinforce this view, with the ₹5,000 strike call holding the highest open interest at 4,770 contracts, suggesting that many traders expect the stock to surpass this level. The ₹4,700 strike, just below the current price, also shows strong open interest, indicating hedging or profit-taking strategies among existing holders.
Sector and Market Context
Within the Aerospace & Defence sector, HAL remains a dominant player, but its recent underperformance relative to the sector’s 2.07% gain highlights some investor caution. The Sensex’s modest 0.19% rise on the same day underscores the selective nature of gains in the market. HAL’s ability to maintain trading above all major moving averages is a positive technical signal, but the downgrade in Mojo Grade to Sell suggests that valuation or earnings concerns persist.
Investors should weigh the strong technical momentum and bullish options positioning against the fundamental caution signalled by the downgrade. The stock’s liquidity and rising delivery volumes provide a favourable environment for active trading, but the mixed signals warrant a measured approach.
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Investor Takeaway and Outlook
The surge in call option volumes at strike prices above the current market level reflects a clear bullish sentiment among traders anticipating a rally in HAL’s shares before the 24 February expiry. The stock’s technical strength, evidenced by its position above all major moving averages and rising delivery volumes, supports this optimism.
However, the downgrade to a Sell rating by MarketsMOJO, driven by a modest Mojo Score of 44.0 and a low Market Cap Grade, signals caution. Investors should consider the potential risks related to valuation pressures or sector-specific headwinds that may temper gains.
For those looking to capitalise on momentum, the active options market provides opportunities to structure trades that benefit from anticipated price moves. Conversely, more conservative investors may prefer to monitor fundamental developments and sector trends before increasing exposure.
Overall, Hindustan Aeronautics Ltd remains a stock of interest with mixed signals from technical and fundamental perspectives, making it essential for investors to balance bullish positioning with prudent risk management.
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