Robust Call Option Activity Highlights Investor Sentiment
On 28 January 2026, Hindustan Zinc Ltd recorded an impressive 4,382 call option contracts traded for the 24 February expiry at the ₹750 strike price. This activity generated a turnover of approximately ₹1464.38 lakhs, reflecting significant capital deployment in bullish derivative positions. The open interest for these contracts stands at 3,589, indicating a strong build-up of outstanding positions that could influence price dynamics as expiry approaches.
The underlying stock closed at ₹712.90, just 2.42% shy of its 52-week high of ₹733, suggesting that the ₹750 strike is a near-the-money call option. This proximity to the current market price reveals that traders are positioning for a moderate upside within the next month, betting on the stock to breach this level and potentially deliver gains.
Price Performance and Technical Context
Despite the bullish options activity, Hindustan Zinc underperformed its sector on the day, declining by 2.42%, compared to a sector fall of 0.26%. The stock opened with a gap down of 2.09% and touched an intraday low of ₹705.10, marking a 3.04% dip from the previous close. This short-term weakness follows two consecutive days of gains, signalling a possible trend reversal or profit-taking phase.
However, the stock remains technically strong, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This alignment of moving averages typically indicates a sustained uptrend and provides a solid foundation for further price appreciation. Additionally, rising investor participation is evident, with delivery volumes on 27 January reaching 94.66 lakhs, a 22.86% increase over the five-day average, reflecting heightened interest in accumulating shares.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Mojo Score Upgrade Reflects Improving Fundamentals
Hindustan Zinc’s recent upgrade from a Hold to a Buy rating by MarketsMOJO on 9 October 2025, with a Mojo Score of 71.0, reinforces the positive outlook for the stock. The company’s market capitalisation stands at a robust ₹3,01,117.36 crores, categorising it as a large-cap entity within the non-ferrous metals sector. The upgrade reflects improved financial metrics, operational efficiencies, and favourable sectoral trends that support a bullish stance.
Investors should note that the stock’s liquidity is sufficient to accommodate sizeable trades, with a 2% threshold of the five-day average traded value equating to approximately ₹47.81 crores. This liquidity ensures that both institutional and retail investors can execute positions without significant market impact.
Expiry Patterns and Strike Price Significance
The 24 February 2026 expiry date is attracting considerable attention, with the ₹750 strike price emerging as the focal point for call option buyers. This strike is strategically placed just above the current market price, suggesting that traders expect the stock to test or surpass this level within the next four weeks. The open interest accumulation at this strike price indicates a consensus among market participants about the potential for upward movement.
Such concentrated activity in call options often precedes notable price action, as traders hedge or speculate on anticipated catalysts such as quarterly earnings, commodity price shifts, or macroeconomic developments impacting the non-ferrous metals industry.
Sectoral and Market Context
Within the broader non-ferrous metals sector, Hindustan Zinc’s performance is closely watched due to its dominant market position and operational scale. While the sector has experienced modest volatility, the company’s ability to maintain trading levels above key moving averages and attract bullish derivative interest sets it apart from peers.
Comparatively, the Sensex posted a positive return of 0.52% on the same day, highlighting a divergence between the broader market’s modest gains and Hindustan Zinc’s short-term weakness. This divergence may present a buying opportunity for investors anticipating a sectoral rebound or company-specific catalysts.
Hindustan Zinc Ltd caught your attention? Explore our comprehensive research report with in-depth analysis of this large-cap Non - Ferrous Metals stock – fundamentals, valuations, financials, and technical outlook!
- - Comprehensive research report
- - In-depth large-cap analysis
- - Valuation assessment included
Investor Implications and Outlook
For investors, the current surge in call option activity at the ₹750 strike price offers a clear indication of market expectations for near-term upside. The combination of technical strength, rising delivery volumes, and a recent upgrade to a Buy rating provides a compelling case for considering Hindustan Zinc as a core portfolio holding.
However, the recent price dip and underperformance relative to the sector caution against complacency. Investors should monitor key support levels around ₹705 and watch for any shifts in open interest or volatility that could signal changes in market sentiment.
Given the stock’s liquidity and large-cap status, it remains an attractive candidate for both derivative traders and long-term investors seeking exposure to the non-ferrous metals space, which is poised to benefit from global industrial demand and commodity price stability.
Conclusion
Hindustan Zinc Ltd’s prominence in call option trading ahead of the 24 February expiry highlights a bullish consensus among market participants. While the stock has experienced short-term weakness, its technical positioning, fundamental upgrade, and strong open interest at the ₹750 strike price suggest potential for a positive price trajectory. Investors should weigh these factors carefully, balancing the opportunity for gains with the inherent risks of market volatility in the metals sector.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
