NMDC Ltd Sees Surge in Call Option Activity Amid Bullish Momentum

Strong Call Option Activity Indicates Investor Optimism

On 26 February 2026, NMDC Ltd emerged as the most active stock in call options trading, with the 85 strike price call options expiring on 30 March 2026 seeing 2,098 contracts traded. This translated into a turnover of ₹321.47 lakhs, reflecting substantial investor interest in leveraged bullish positions. The open interest at this strike price stands at 1,371 contracts, underscoring sustained commitment from market participants ahead of expiry.

The underlying stock price closed at ₹83.39, just 4.39% shy of its 52-week high of ₹86.72, suggesting that the 85 strike call options are positioned close to the money. This proximity often attracts speculative and hedging activity, as traders anticipate a potential breakout above this level in the near term.

Price Momentum and Technical Strength Support Bullish Outlook

NMDC Ltd has demonstrated consistent price appreciation, outperforming its sector by 1.33% on the day and delivering a 1.89% gain compared to the Sensex’s modest 0.24% rise. The stock has recorded gains over the last three consecutive sessions, accumulating a 5.27% return during this period. This positive trend is reinforced by the stock trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling strong technical support and upward momentum.

Investor participation has also intensified, with delivery volumes on 25 February reaching 1.44 crore shares, a 34.41% increase over the five-day average. This heightened activity indicates growing conviction among long-term investors, complementing the speculative interest seen in the options market.

Dividend Yield and Market Capitalisation Bolster Investment Appeal

NMDC Ltd’s current dividend yield stands at an attractive 7.08%, offering investors a healthy income stream alongside capital appreciation potential. The company’s market capitalisation is ₹71,979 crore, categorising it as a mid-cap stock with a Market Cap Grade of 2, which reflects moderate size and liquidity in the Indian equity markets.

Liquidity metrics further support active trading, with the stock’s average traded value over five days enabling trade sizes up to ₹4.11 crore without significant market impact. This liquidity is crucial for institutional investors and traders looking to build or unwind sizeable positions efficiently.

Options Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the ₹85 strike price, just above the current market price, suggests that traders are positioning for a breakout in the coming weeks. The expiry date of 30 March 2026 is less than five weeks away, a timeframe that often sees increased volatility and directional bets as traders adjust their portfolios ahead of expiry.

Open interest data reveals that the 85 strike call options are among the most heavily held, indicating that many investors expect the stock to surpass this level or at least maintain strength near it. This positioning aligns with the stock’s recent technical performance and fundamental outlook.

MarketsMOJO Ratings and Recent Grade Revision

MarketsMOJO currently assigns NMDC Ltd a Mojo Score of 75.0 and a Buy grade, reflecting a positive assessment of the company’s fundamentals, technicals, and market sentiment. Notably, the stock was recently downgraded from a Strong Buy to a Buy on 13 February 2026, signalling a slight moderation in enthusiasm but maintaining an overall favourable stance.

This adjustment may reflect valuation considerations or sector-specific risks, but the stock’s strong price action and derivatives activity suggest that investors remain optimistic about its near-term prospects.

Sector Context and Comparative Performance

Within the Minerals & Mining sector, NMDC Ltd’s recent outperformance is notable. The sector’s 1-day return stood at 0.45%, significantly lower than NMDC’s 1.89% gain, highlighting the stock’s relative strength. This outperformance is supported by the company’s robust fundamentals, including steady production volumes, cost efficiencies, and favourable commodity price trends.

Investors should consider sector dynamics, including regulatory developments and global demand for minerals, which could influence NMDC’s trajectory. However, the current market positioning and derivatives activity suggest that the stock is well-placed to capitalise on positive sector tailwinds.

Risks and Considerations

Despite the bullish signals, investors should remain mindful of potential risks. Commodity price volatility, geopolitical tensions, and changes in government policies could impact NMDC’s operations and profitability. Additionally, the recent downgrade from Strong Buy to Buy indicates some caution among analysts regarding valuation or near-term catalysts.

Options traders should also be aware of the approaching expiry date, which may bring increased volatility and rapid price movements. Prudent risk management and monitoring of open interest changes are advisable for those engaging in derivatives strategies.

Conclusion: Bullish Sentiment Backed by Strong Fundamentals and Technicals

NMDC Ltd’s surge in call option activity, combined with solid price momentum and attractive dividend yield, underscores a growing bullish consensus among investors. The stock’s proximity to its 52-week high, strong delivery volumes, and favourable technical indicators support the view that NMDC is poised for further gains in the near term.

While some caution is warranted given recent rating adjustments and sector risks, the overall market positioning and derivative trends suggest that NMDC remains a compelling opportunity within the Minerals & Mining space for investors seeking mid-cap exposure with income and growth potential.

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