Hindustan Zinc Ltd Sees Surge in Call Option Activity Amid Bullish Market Sentiment

Strong Price Performance and Market Context

On 27 Jan 2026, Hindustan Zinc Ltd hit a new 52-week high of ₹733, marking a notable intraday gain of 4.91%. The stock has been on an upward trajectory, delivering a 7.39% return over the past two trading sessions. This performance aligns with the broader non-ferrous metals sector, which gained 2.6% on the day, outperforming the Sensex’s modest 0.37% rise. The stock’s market capitalisation stands at a robust ₹3,04,222.97 crores, categorising it firmly as a large-cap entity with strong liquidity and investor participation.

Hindustan Zinc’s price currently trades above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a sustained bullish trend. Delivery volumes have also increased, with 80.93 lakh shares delivered on 23 Jan, a 14.68% rise compared to the five-day average, indicating rising investor conviction.

Call Option Activity Highlights

The derivatives market reveals heightened interest in Hindustan Zinc’s call options, particularly for contracts expiring on 27 Jan 2026 and 24 Feb 2026. The most actively traded call options include:

• Strike price ₹720 expiring 27 Jan 2026: 3,530 contracts traded, turnover of ₹242.59 lakhs, open interest at 1,384 contracts.


• Strike price ₹750 expiring 24 Feb 2026: 3,618 contracts traded, turnover of ₹1,541.02 lakhs, open interest at 3,383 contracts.


• Strike price ₹710 expiring 27 Jan 2026: 3,640 contracts traded, turnover of ₹470.87 lakhs, open interest at 1,094 contracts.

The underlying stock price at ₹720.8 closely aligns with the strike prices of these call options, suggesting that traders are positioning for further upside in the near term. The substantial open interest, especially in the February expiry at the ₹750 strike, indicates a strong bullish sentiment extending beyond the immediate expiry cycle.

Implications of Elevated Call Option Turnover and Open Interest

High turnover and open interest in call options typically reflect investor optimism about the underlying stock’s prospects. In Hindustan Zinc’s case, the turnover of over ₹1,500 lakhs in the February ₹750 strike call option is particularly noteworthy, signalling aggressive positioning for a price rally above this level within the next month. The concentration of contracts near the current market price also suggests that traders expect the stock to maintain or exceed its recent highs.

Such activity often precedes significant price moves, as option buyers hedge or speculate on anticipated catalysts. For Hindustan Zinc, these could include favourable commodity price trends, operational efficiencies, or positive sectoral developments in non-ferrous metals.

Mojo Score Upgrade Reflects Improving Fundamentals

Adding to the bullish narrative, Hindustan Zinc’s MarketsMOJO score has improved to 71.0, earning a ‘Buy’ grade as of 9 Oct 2025, upgraded from a previous ‘Hold’. This upgrade reflects enhanced financial metrics, operational performance, and market positioning. The company’s market cap grade remains at 1, indicating its status as a large-cap stock with strong institutional interest and liquidity.

The upgrade is supported by consistent earnings growth, stable cash flows, and favourable commodity price dynamics, which underpin the stock’s positive outlook. Investors should note that the stock’s day change of 2.43% on 27 Jan 2026 further confirms the strengthening momentum.

Expiry Patterns and Investor Positioning

Examining expiry dates reveals that the bulk of call option activity is concentrated around the near-term expiry of 27 Jan 2026 and the subsequent 24 Feb 2026 cycle. The January expiry shows strong interest at strike prices just below and at the current market price (₹710 and ₹720), while the February expiry features a higher strike price of ₹750 with significant open interest and turnover.

This pattern suggests a two-phase bullish strategy among traders: immediate upside capture in the short term, followed by a more ambitious price target in the medium term. The elevated open interest in February’s ₹750 strike indicates confidence that the stock will surpass this level within the next month, potentially driven by positive sectoral catalysts or company-specific developments.

Sectoral and Market Comparison

Hindustan Zinc’s performance is in line with the broader non-ferrous metals sector, which has gained 2.6% on the day, outperforming the Sensex’s 0.37% rise. The stock’s 3.05% one-day return surpasses the sector average of 2.35%, highlighting its relative strength. This outperformance is supported by rising investor participation and robust liquidity, with the stock capable of handling trade sizes up to ₹44.41 crores based on 2% of the five-day average traded value.

Investor Takeaway

Hindustan Zinc Ltd’s active call option market, combined with its recent price highs and upgraded fundamental scores, presents a compelling case for bullish investors. The concentration of call options near the current price and at higher strikes for upcoming expiries indicates strong market expectations of further price appreciation.

However, investors should remain mindful of commodity price volatility and global economic factors that could impact the non-ferrous metals sector. While the current technical and fundamental signals are positive, prudent risk management remains essential.

Overall, Hindustan Zinc’s blend of strong liquidity, rising investor participation, and positive derivatives market positioning makes it a stock to watch closely in the coming weeks.

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