Put Option Activity Highlights
On 29 December 2025, Hindustan Zinc Ltd (HINDZINC) emerged as one of the most actively traded stocks in the put options segment. The strike prices attracting the highest put contracts were ₹620 and ₹630, both expiring on 30 December 2025. Specifically, 10,122 contracts were traded at the ₹620 strike, generating a turnover of ₹358.34 lakhs, while the ₹630 strike saw even heavier activity with 11,108 contracts traded, amounting to ₹616.41 lakhs in turnover. Open interest figures stood at 1,420 and 1,044 contracts respectively, indicating sustained interest in these bearish positions.
The underlying stock price at the time was ₹627.30, placing these strike prices close to the money and suggesting that traders are positioning for a potential pullback or increased volatility in the near term. The concentration of put activity near current market levels often reflects hedging strategies by institutional investors or speculative bets on a price correction.
Stock Price Performance and Technical Context
Hindustan Zinc Ltd has recently demonstrated strong price momentum, hitting a new 52-week high of ₹656.35 on the day. The stock opened with a gap up of 2.85% but subsequently experienced a reversal, closing down by 1.85% for the day, underperforming its sector by 0.58% and the broader Sensex by 1.53%. Intraday volatility was evident, with the price swinging between ₹622.25 and ₹656.35.
Technically, the stock remains in a bullish trend, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Rising delivery volumes, which increased by 5.72% to 45.13 lakh shares on 26 December compared to the five-day average, indicate growing investor participation. Liquidity remains robust, supporting sizeable trade volumes with an average daily traded value sufficient for Rs 15.4 crore trade sizes.
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Mojo Score and Analyst Ratings
Hindustan Zinc Ltd currently holds a Mojo Score of 65.0, reflecting a moderate outlook with a Mojo Grade of Hold. This represents an improvement from its previous Sell rating, which was downgraded on 9 October 2025. The stock’s market capitalisation stands at a substantial ₹2,73,336 crore, categorising it firmly as a large-cap entity within the Non-Ferrous Metals industry.
The upgrade in rating suggests that while the stock has shown resilience and positive momentum, caution remains warranted given sectoral headwinds and global commodity price fluctuations. Investors should weigh the stock’s strong fundamentals against the emerging bearish sentiment evident in the options market.
Expiry Patterns and Investor Behaviour
The expiry date of 30 December 2025 is critical, as the surge in put option volumes at strikes ₹620 and ₹630 indicates a clustering of investor interest around these levels. This pattern often signals a market consensus on potential support zones or areas where downside protection is being sought.
Open interest data reveals that despite the heavy trading volumes, a significant number of contracts remain open, implying that investors are maintaining their bearish or hedging positions rather than closing them out. This could be indicative of expectations for increased volatility or a possible correction in the stock price post-expiry.
Sector and Market Context
Within the Non-Ferrous Metals sector, Hindustan Zinc Ltd’s performance is closely watched as a bellwether for metal prices and industrial demand. The sector itself has experienced mixed returns recently, with the stock underperforming its peers marginally on the day. Global economic uncertainties, fluctuating commodity prices, and geopolitical tensions continue to influence investor sentiment.
Against this backdrop, the heightened put option activity may reflect broader concerns about cyclical risks and profit-taking after a sustained rally. Traders and portfolio managers appear to be employing options as a strategic tool to hedge exposure or speculate on near-term downside moves.
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Investor Implications and Outlook
For investors, the current put option activity in Hindustan Zinc Ltd serves as a cautionary signal. While the stock’s fundamentals and technical indicators remain robust, the options market suggests a growing appetite for downside protection. This divergence highlights the importance of monitoring both price action and derivatives data to gauge market sentiment comprehensively.
Long-term investors may view the recent dip as a potential buying opportunity, given the stock’s strong market position and improving Mojo Grade. However, traders and short-term investors should remain vigilant for volatility around the 30 December expiry and consider hedging strategies accordingly.
Overall, Hindustan Zinc Ltd’s options market activity underscores the nuanced balance between optimism and caution prevailing among market participants as the year draws to a close.
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