NMDC Sees Robust Call Option Activity as Stock Hits New 52-Week High

Call Option Activity Highlights

On 23 December 2025, NMDC's call options with a strike price of ₹80 expiring on 30 December 2025 emerged as the most actively traded contracts. A total of 5,631 contracts exchanged hands, generating a turnover of approximately ₹372.49 lakhs. The open interest for these contracts stood at 3,180, signalling sustained market participation and positioning ahead of the expiry date.

The underlying stock price was recorded at ₹79.68, closely aligned with the ₹80 strike price, indicating that traders are positioning for potential upward movement or hedging strategies near this critical level. The concentration of activity in this strike price suggests a bullish sentiment among option traders, anticipating the stock to maintain or surpass this threshold in the near term.

Price Performance and Technical Indicators

NMDC's stock price reached an intraday high of ₹80.25 on the day, marking a fresh 52-week peak. This milestone comes after the stock recorded gains over the previous two sessions, accumulating a return of 4.55% during this period. Despite this, the stock underperformed its sector benchmark, with the Minerals & Mining sector advancing by 2.52% on the same day, while NMDC's one-day return was 1.55%.

From a technical perspective, NMDC is trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment across multiple timeframes often reflects sustained positive momentum and investor confidence in the stock's medium to long-term prospects.

Sector and Market Context

The Minerals & Mining sector has shown resilience, with a 2.52% gain on the day, contrasting with the broader Sensex index which declined by 0.19%. NMDC's market capitalisation stands at ₹70,105.95 crores, categorising it as a mid-cap stock within the sector. The sector's performance and NMDC's relative positioning highlight the stock's role as a key player amid ongoing market dynamics.

Investor Participation and Liquidity

Investor engagement in NMDC has been notable, with delivery volumes reaching 92.83 lakhs on 22 December 2025. This figure represents a 42.83% rise compared to the five-day average delivery volume, indicating heightened investor interest and confidence. The stock's liquidity is sufficient to support sizeable trades, with the capacity to handle trade sizes up to ₹1.8 crores based on 2% of the five-day average traded value.

Dividend Yield and Investor Appeal

NMDC offers a dividend yield of 4.2% at the current price level, which adds an attractive income component for investors seeking steady returns alongside capital appreciation. This yield is competitive within the Minerals & Mining sector and may contribute to the stock's appeal among income-focused market participants.

Expiry Patterns and Market Positioning

The concentration of call option activity at the ₹80 strike price with expiry on 30 December 2025 suggests that market participants are closely monitoring this level as a potential breakout or consolidation point. The open interest data supports the view that traders are positioning for a possible continuation of the recent upward trend or are hedging existing exposures in anticipation of volatility around the expiry.

Such patterns often reflect a blend of speculative and hedging strategies, with investors balancing risk and reward as the expiry date approaches. The proximity of the underlying price to the strike price further emphasises the significance of this level in the current market context.

Comparative Sector Analysis

While NMDC's one-day return of 1.55% trails the sector's 2.52% gain, the stock's recent two-day rally and new 52-week high indicate a positive trajectory. The broader Minerals & Mining sector's performance has been supported by factors such as commodity price movements and demand outlooks, which also influence NMDC's market dynamics.

Investors analysing NMDC alongside its sector peers may consider the stock's liquidity, dividend yield, and technical positioning as key factors in assessing its relative attractiveness within the mid-cap segment.

Outlook and Market Implications

NMDC's recent price action, combined with the surge in call option activity, highlights a market environment where investors are positioning for potential gains while managing risk ahead of the December expiry. The stock's ability to sustain levels above key moving averages and maintain liquidity supports its role as a focal point within the Minerals & Mining sector.

Market participants should continue to monitor open interest trends and price movements around the ₹80 strike price, as these may provide insights into evolving investor sentiment and potential directional shifts in the near term.

Summary

In summary, NMDC Ltd has demonstrated notable market interest through its call option activity and price performance. The stock's new 52-week high, combined with strong delivery volumes and a competitive dividend yield, underscores its significance within the mid-cap Minerals & Mining space. As expiry approaches, the concentration of open interest at the ₹80 strike price will remain a key indicator for traders and investors alike.

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