Strong Call Option Volume Highlights Investor Confidence
On the expiry date of 30 Dec 2025, Hindustan Zinc witnessed a remarkable 4,248 call option contracts traded at the ₹630 strike price. This activity generated a turnover of ₹77.02 lakhs, underscoring substantial investor interest in leveraged bullish bets. The open interest for these contracts stood at 1,132, indicating a solid base of outstanding positions that may influence price movements in the near term.
The underlying stock price was ₹620.10 at the time, placing the ₹630 strike price slightly out-of-the-money but within striking distance, which often attracts speculative and hedging activity ahead of expiry. This pattern suggests that market participants are positioning for a potential upside move in Hindustan Zinc’s shares.
Price and Volume Trends Support Bullish Outlook
Despite underperforming its sector by 0.36% on the day, Hindustan Zinc’s price has demonstrated resilience by trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day. This technical strength is often interpreted as a positive signal by traders and investors alike.
Further bolstering the bullish narrative is the surge in delivery volume, which reached 92.23 lakh shares on 29 Dec 2025, marking a 125.54% increase compared to the five-day average. Such rising investor participation indicates growing conviction in the stock’s prospects, potentially driven by favourable fundamentals or sectoral tailwinds in the non-ferrous metals industry.
Liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes up to ₹20.43 crore based on 2% of the five-day average traded value. This ensures that large institutional trades and option-related hedging can be executed without significant market impact.
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Mojo Score Upgrade Reflects Improving Fundamentals
Hindustan Zinc’s MarketsMOJO score currently stands at 65.0, categorised as a ‘Hold’ rating, an improvement from its previous ‘Sell’ grade as of 09 Oct 2025. This upgrade reflects a positive shift in the company’s financial and operational metrics, although the stock remains cautious for investors seeking aggressive upside.
The company’s market capitalisation is substantial at ₹2,61,336 crore, placing it firmly in the large-cap segment. However, its market cap grade is rated at 1, indicating that while the company is large, it may not be among the highest quality or most liquid stocks in its sector. This nuanced view is important for investors balancing growth potential with risk.
Sector and Market Context
Operating within the non-ferrous metals industry, Hindustan Zinc is exposed to global commodity price fluctuations and domestic demand cycles. The sector’s one-day return of 0.81% outpaced Hindustan Zinc’s 0.23% gain, suggesting some relative underperformance. Meanwhile, the Sensex marginally declined by 0.02%, highlighting a mixed market environment.
Nonetheless, the stock’s technical positioning above all major moving averages and the surge in delivery volumes indicate that investors are selectively bullish on Hindustan Zinc, possibly anticipating sectoral recovery or company-specific catalysts such as production ramp-ups or cost efficiencies.
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Expiry Patterns and Investor Positioning
The concentration of call option activity at the ₹630 strike price with expiry on 30 Dec 2025 suggests that investors are targeting a near-term price appreciation of approximately 1.6% from the current underlying value. This is a typical strategy for traders expecting a positive catalyst or sustained momentum in the stock.
Open interest of 1,132 contracts at this strike price indicates that many investors are holding onto bullish positions rather than merely speculating intraday. This can lead to increased gamma and delta hedging by market makers, potentially amplifying price movements as expiry approaches.
Such positioning often precedes volatility spikes, especially if the stock price approaches or breaches the strike price. Investors should monitor volume and open interest changes closely to gauge shifts in market sentiment.
Balancing Risks and Opportunities
While the call option activity and technical indicators point to a cautiously optimistic outlook for Hindustan Zinc, investors must remain mindful of sectoral risks such as commodity price volatility, regulatory changes, and global economic conditions that could impact earnings.
The ‘Hold’ Mojo Grade reflects this balanced view, signalling that while the stock has upside potential, it may not yet be a definitive buy for all investor profiles. Those considering exposure should weigh the recent upgrade against the company’s valuation and broader market trends.
In summary, Hindustan Zinc’s active call option market and improving fundamentals make it a stock to watch closely in the coming weeks, especially as expiry dates and quarterly results approach.
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