Hindustan Zinc Ltd Sees Robust Call Option Activity Ahead of January Expiry

Robust Call Option Activity Highlights Bullish Positioning

On 14 Jan 2026, Hindustan Zinc Ltd witnessed significant call option trading activity, particularly for contracts expiring on 27 Jan 2026. The strike prices of ₹640 and ₹650 attracted the highest volumes, with 4,788 and 4,862 contracts traded respectively. The turnover for these strikes was substantial, amounting to ₹1338.46 lakhs for the ₹640 strike and ₹1120.91 lakhs for the ₹650 strike. Open interest figures further corroborate this bullish positioning, standing at 4,408 contracts for the ₹640 strike and 4,955 contracts for the ₹650 strike.

The underlying stock price at ₹646.20 is currently trading just 1.74% below its 52-week high of ₹656.35, underscoring the proximity to a key resistance level. The concentration of call option activity at strikes near the current market price suggests that traders are positioning for a potential breakout above this level in the coming weeks.

Price and Technical Momentum Support Positive Outlook

Hindustan Zinc has demonstrated consistent strength over recent sessions, gaining 9.21% over the last four trading days. On 14 Jan 2026, the stock touched an intraday high of ₹647.25, marking a 2.76% increase on the day and outperforming the broader Sensex, which was essentially flat with a marginal decline of 0.02%. The stock’s performance is also in line with its sector, Non-Ferrous Metals, which gained 2.85% on the same day.

Technically, Hindustan Zinc is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a strong upward trend. This technical strength is likely encouraging traders to take bullish positions through call options, anticipating further price appreciation.

Despite the positive price action, investor participation has shown some moderation. Delivery volumes on 13 Jan 2026 were recorded at 22.56 lakh shares, down 48.19% compared to the five-day average delivery volume. This dip in delivery volume suggests that while short-term speculative interest is high, longer-term investor conviction may be consolidating.

Fundamental and Market Context

Hindustan Zinc Ltd operates in the Non-Ferrous Metals industry, a sector that has shown resilience amid fluctuating commodity prices. The company holds a large-cap market capitalisation of ₹2,73,547.15 crores, reflecting its dominant position in the zinc production space. Its current Mojo Score stands at 65.0, with a Mojo Grade of Hold, upgraded from Sell on 9 Oct 2025. This upgrade reflects improved fundamentals and market sentiment, although the stock still carries a Market Cap Grade of 1, indicating room for growth relative to its peers.

The stock’s liquidity profile supports active trading, with a 5-day average traded value sufficient to accommodate trade sizes of up to ₹15.95 crores without significant price impact. This liquidity is crucial for options traders who require efficient execution for large volumes.

Expiry Patterns and Strike Price Concentration

The expiry date of 27 Jan 2026 has attracted the bulk of call option interest, suggesting that traders are focusing on short-term catalysts or events that could drive the stock price higher within the next two weeks. The clustering of open interest and traded contracts around the ₹640 and ₹650 strikes indicates that these levels are viewed as critical thresholds for potential price movement.

Given the underlying price of ₹646.20, the ₹640 strike is slightly in-the-money, while the ₹650 strike is just out-of-the-money. The high open interest at these strikes implies that market participants are betting on the stock sustaining or surpassing these levels by expiry, which would result in profitable payoffs for call option holders.

Sectoral and Broader Market Comparison

Within the Non-Ferrous Metals sector, Hindustan Zinc’s performance is notable. The sector gained 2.85% on the day, outpacing the Sensex’s flat performance. Hindustan Zinc’s 5.07% day change and sustained gains over multiple sessions highlight its relative strength. This outperformance is likely to attract further speculative interest, particularly in derivatives markets where leverage amplifies potential returns.

Investor Implications and Outlook

The surge in call option volumes and open interest at near-the-money strikes, combined with the stock’s technical strength and recent upgrade in Mojo Grade, suggests a cautiously optimistic outlook for Hindustan Zinc Ltd. Traders appear to be positioning for a potential breakout above the ₹650 level, which could unlock further gains in the short term.

However, the decline in delivery volumes signals that some investors may be adopting a wait-and-watch approach, possibly awaiting confirmation of sustained momentum or clarity on sectoral drivers such as metal prices and global demand.

For investors considering exposure to Hindustan Zinc, the current environment offers an opportunity to capitalise on positive momentum while remaining mindful of the stock’s Hold rating and the inherent volatility in commodity-linked equities.

Summary

In summary, Hindustan Zinc Ltd’s active call option market, strong price performance, and technical positioning underscore a bullish sentiment among traders. The concentration of activity around the ₹640 and ₹650 strikes for the 27 Jan 2026 expiry highlights key levels to watch. While fundamentals have improved, reflected in the recent Mojo Grade upgrade, investors should balance optimism with caution given the sector’s cyclical nature and fluctuating investor participation.

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