Hindustan Zinc’s Volatile Week: -1.28% Amid Mixed Option Activity and Institutional Interest

29 December 2025: New 52-Week High Amid Intraday Volatility

Hindustan Zinc Ltd began the week on a volatile note, reaching a new 52-week high of Rs.656.25 during intraday trading, representing a 3.06% gain from the previous close. The stock opened with a strong gap up of 2.57%, signalling robust buying interest. However, this momentum was short-lived as the stock reversed sharply to hit an intraday low of Rs.614.75, a 3.46% decline from the prior close, before settling with a net loss of 2.87% at Rs.618.50. This intraday swing reflected a tug of war between bullish enthusiasm and profit-taking pressures.

Despite the intraday setback, the stock’s five-day consecutive gains prior to this day had accumulated to a 10.48% rally, supported by trading above all key moving averages. Institutional interest was evident, with delivery volumes rising 5.72% over the five-day average and traded value exceeding ₹368 crore. The Metals - Non Ferrous sector gained 3.09% on the day, outperforming Hindustan Zinc’s 1.84% intraday gain before the reversal, while the Sensex declined 0.41%, highlighting sector-specific dynamics.

30 December 2025: Steady Gains and Active Call Option Market

The stock rebounded on 30 December, closing at Rs.625.25, up 1.09% from the previous close. Trading volume was moderate at 5.58 lakh shares, with a traded value of ₹176.66 crore, underscoring sustained liquidity. Institutional participation remained strong, as delivery volumes surged 125.54% compared to the five-day average, indicating genuine accumulation rather than speculative trading.

Call option activity was particularly notable, with 4,248 contracts traded at the ₹630 strike expiring the same day, generating a turnover of ₹77.02 lakhs. This concentration near the current price reflected bullish positioning, despite the stock’s slight underperformance relative to the sector’s 0.81% gain. The stock maintained its position above all major moving averages, signalling continued technical strength.

31 December 2025: High Value Trading Amid Price Decline and Put Option Surge

On the last trading day of 2025, Hindustan Zinc saw one of the highest value turnovers in the equity market, with 29.14 lakh shares traded worth approximately ₹179.51 crore. Despite this liquidity, the stock closed lower at Rs.612.30, down 2.07%, underperforming both the Metals - Non Ferrous sector (-0.76%) and the Sensex (+0.83%). Intraday volatility was evident with a low of Rs.610.30, marking a 2.4% drop from the previous close.

Put option activity intensified significantly, with heavy volumes at strike prices ₹600, ₹610, and ₹620 for the January 2026 expiry. The 600 strike alone had 1,716 contracts traded and an open interest of 2,187 contracts, signalling increased bearish hedging or speculative bets on downside risk. This surge in put buying contrasted with the stock’s technical position, which remained above its 20-day and longer moving averages but dipped below the 5-day average, indicating short-term weakness.

Delivery volumes declined by 25.38% relative to the five-day average, suggesting reduced conviction among long-term holders amid the price drop. The stock’s large-cap status and liquidity continue to make it a preferred choice for institutional investors, but the mixed signals highlight a cautious market environment.

1 January 2026: Consolidation with Minor Decline

Trading on 1 January was subdued, with the stock closing marginally lower at Rs.611.80, down 0.08%. Volume was thin at 1.70 lakh shares, reflecting the holiday period and reduced market participation. The Sensex gained 0.14%, while the Metals - Non Ferrous sector showed mixed performance. The stock remained above its longer-term moving averages but below the 5-day average, indicating ongoing short-term consolidation.

2 January 2026: Strong Rebound Outpaces Sensex

Hindustan Zinc closed the week on a positive note, rallying 2.75% to Rs.628.60 on moderate volume of 2.99 lakh shares. This gain outpaced the Sensex’s 0.81% rise, signalling renewed buying interest. The stock’s recovery from recent lows and sustained trading above key moving averages suggest a stabilising technical outlook. The rebound followed the heavy put option activity and price weakness earlier in the week, indicating that some of the bearish pressure may have eased.

Key Takeaways

Positive Signals: The stock’s ability to reach a new 52-week high and maintain trading above all major moving averages reflects underlying technical strength. Institutional interest remains robust, as evidenced by rising delivery volumes and high traded values. The rebound on 2 January suggests resilience and potential for stabilisation after short-term weakness.

Cautionary Signals: Intraday volatility and sharp reversals highlight susceptibility to profit-taking and market sentiment shifts. Heavy put option activity near current price levels indicates hedging and bearish positioning, signalling investor caution. The stock’s underperformance relative to the Sensex over the week (-1.28% vs +1.35%) suggests it is facing sector-specific or company-specific headwinds.

Conclusion

Hindustan Zinc Ltd’s week was characterised by significant price swings, strong institutional participation, and mixed signals from the options market. While the stock demonstrated technical resilience by hitting a 52-week high and sustaining above key moving averages, the intraday reversals and heavy put option volumes reveal a cautious investor stance. The stock’s modest weekly decline contrasted with the Sensex’s gains, underscoring the nuanced market environment facing the non-ferrous metals sector. Going forward, monitoring price action around key support levels and option market dynamics will be crucial to understanding the stock’s near-term trajectory.

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