Hindustan Zinc Gains 2.42%: Four Key Factors Driving This Week’s Momentum

23 February 2026: Robust Trading Activity Amid Mixed Technical Signals

Hindustan Zinc Ltd emerged as one of the most actively traded stocks by value on 23 February, registering a total traded volume of 26.52 lakh shares and a turnover exceeding ₹159.83 crores. The stock opened at Rs.607.00, a 2.99% gap-up from the previous close, and despite some early volatility, it closed at Rs.590.95, marking a modest gain of 0.23% for the day. This performance outpaced the Sensex’s 0.39% rise, signalling strong investor interest despite a recent downgrade in the Mojo Grade from Buy to Hold.

Technically, the stock traded above its 5-day, 100-day, and 200-day moving averages, indicating medium- and long-term strength. However, it remained below the 20-day and 50-day averages, suggesting near-term resistance and potential consolidation. Delivery volumes increased by 17.34% over the five-day average, reflecting growing conviction among investors holding positions rather than engaging in intraday trading.

25 February 2026: Intraday High and Sharp Open Interest Surge

On 25 February, Hindustan Zinc demonstrated robust intraday strength, surging 3.39% to close at Rs.618.65, with an intraday high of Rs.616.85. This marked the fourth consecutive day of gains, cumulatively delivering a 5.46% return over this period. The stock outperformed the Metal - Non Ferrous sector’s 2.69% gain and the Sensex’s 0.41% rise, underscoring its strong momentum within the sector.

Simultaneously, the derivatives market saw a sharp 17.97% increase in open interest, rising from 51,814 to 61,123 contracts. This surge, accompanied by a trading volume of 66,368 contracts, suggests fresh long positions being established, reflecting bullish sentiment among traders. The futures segment accounted for a value of approximately ₹64,661 lakhs, while options notional value stood at ₹44,644 crores, highlighting significant market activity.

Despite this momentum, delivery volumes declined by 23.06% compared to the five-day average, indicating that short-term traders and derivatives players were driving the recent gains rather than long-term holders. The stock’s position above key moving averages supports the underlying strength, though resistance near the 20-day and 50-day averages remains a factor to watch.

27 February 2026: Surge in Put Option Activity Ahead of March Expiry

As the 30 March expiry approaches, Hindustan Zinc has become the most actively traded stock in the put options segment. Significant volumes concentrated at the ₹530 and ₹540 strike prices, with 2,165 and 2,121 contracts traded respectively, generated a combined turnover exceeding ₹152 lakhs. These strikes represent discounts of approximately 11.5% and 12.5% to the current stock price of Rs.616.15, signalling cautious or bearish positioning among market participants.

The stock closed the day with a 1.10% gain, outperforming the non-ferrous metals sector’s 0.58% rise and contrasting with the Sensex’s 0.54% decline. However, delivery volumes fell by 20.64% compared to the five-day average, suggesting waning conviction among buyers. The mixed technical picture—with the stock above its 5-day, 20-day, 100-day, and 200-day moving averages but below the 50-day—indicates short-term resistance amid medium- to long-term support.

Daily Price Performance vs Sensex

Key Takeaways

Hindustan Zinc Ltd’s 2.42% weekly gain against the Sensex’s 0.96% decline highlights its relative strength amid a volatile market backdrop. The stock’s outperformance was supported by robust trading volumes, strong intraday rallies, and a notable surge in derivatives open interest, signalling active positioning by traders.

However, the recent downgrade to a Hold rating and mixed technical indicators—particularly resistance near the 20-day and 50-day moving averages—suggest caution. The surge in put option activity at strike prices significantly below the current market level points to hedging or bearish speculation ahead of the March expiry, reflecting some investor wariness.

Delivery volumes showed a declining trend late in the week, indicating that short-term traders and derivatives players are currently driving momentum rather than long-term holders. This divergence between price gains and delivery participation warrants close monitoring for sustainability of the rally.

Conclusion

Overall, Hindustan Zinc Ltd demonstrated resilience and positive momentum during the week, outperforming the broader market and its sector peers. The combination of strong volume, active derivatives positioning, and sustained liquidity underscores its prominence in the non-ferrous metals space. Yet, the mixed technical signals and increased put option activity highlight a cautious market stance as expiry approaches.

Investors and market participants should continue to monitor price action relative to key moving averages and delivery volumes, alongside sector dynamics, to gauge the stock’s medium-term trajectory. The current Mojo Score of 64.0 and Hold rating reflect a balanced view, acknowledging both the stock’s strengths and the risks ahead.

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