ABB India Sees Heavy Put Option Activity Amid Bearish Sentiment

Put Option Activity Highlights

On 23 February 2026, ABB India Ltd (NSE: ABB), a heavyweight in the heavy electrical equipment industry, recorded substantial put option volumes concentrated around the 5800 and 5900 strike prices, both expiring on 24 February 2026. The 5900 strike saw the highest number of contracts traded at 8,473, generating a turnover of ₹6.07 crores, while the 5800 strike followed closely with 7,885 contracts and ₹2.94 crores turnover. Open interest figures stood at 665 and 1,069 contracts respectively, indicating sustained investor interest in these strikes.

The underlying stock closed at ₹5,870, hovering just below the 5900 strike, which suggests that traders are positioning for potential downside or hedging against near-term volatility. The heavy put option activity at these strike prices, close to the current market value, is often interpreted as a bearish signal or a protective strategy by market participants.

Price Performance and Market Context

ABB India Ltd underperformed its sector on the day, declining by 2.37%, compared to a sector drop of 1.15%, and a Sensex gain of 0.38%. The stock touched an intraday low of ₹5,842, down 2.42%, with weighted average traded volumes skewed towards the lower price range, indicating selling pressure. Despite this, ABB remains above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, reflecting a longer-term uptrend that contrasts with the short-term bearish sentiment expressed through options.

Investor participation has surged dramatically, with delivery volumes on 20 February reaching 10.08 lakh shares, a staggering 1,336.61% increase over the five-day average. This spike in delivery volume suggests that institutional investors may be actively adjusting their positions, possibly in response to evolving market conditions or company-specific developments.

Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹12.02 crores comfortably, ensuring that option and equity trades can be executed without significant market impact.

Mojo Score and Analyst Ratings

ABB India Ltd currently holds a Mojo Score of 55.0, categorised as a 'Hold' rating, an improvement from its previous 'Sell' grade as of 29 January 2026. This upgrade reflects a cautious optimism among analysts, balancing the company’s strong market capitalisation of ₹1,26,857 crores against recent price weakness and sector headwinds. The market cap grade of 1 confirms ABB’s status as a large-cap stock, attracting institutional interest but also subject to broader market dynamics.

Interpreting the Put Option Surge

The concentration of put option trades at the 5800 and 5900 strikes expiring imminently suggests that traders are either hedging existing long positions or speculating on a near-term correction. The open interest levels, while moderate, indicate that these positions are not fleeting but rather part of a strategic stance. Given the stock’s current price near these strikes, the options market is pricing in a probability of downside risk or increased volatility in the coming days.

Such activity is not uncommon in large-cap stocks within cyclical sectors like heavy electrical equipment, where macroeconomic factors such as infrastructure spending, interest rate movements, and global supply chain disruptions can influence investor sentiment rapidly.

Sector and Market Comparison

Compared to the broader heavy electrical equipment sector, ABB’s 1.87% one-day decline outpaced the sector’s 0.75% fall, signalling relative weakness. Meanwhile, the Sensex’s modest 0.38% gain highlights a divergence between ABB’s performance and the overall market trend. This divergence may be driving the increased put option interest as investors seek downside protection amid sector-specific concerns.

Investors should also note that ABB’s trading volumes and liquidity metrics support active participation, making it a viable candidate for tactical option strategies. However, the mixed signals from technical indicators and option market activity warrant a cautious approach.

Investor Takeaways and Outlook

For investors in ABB India Ltd, the current surge in put option activity serves as a cautionary signal. While the stock’s technicals remain generally positive over the medium term, the near-term outlook is clouded by increased bearish positioning. Traders should monitor the 5800–5900 price band closely, as a breach below these levels could trigger further downside momentum.

Hedging strategies using put options may be prudent for existing shareholders seeking to protect gains or limit losses amid uncertain market conditions. Conversely, speculative traders might view the elevated put volumes as an opportunity to capitalise on potential volatility spikes.

Given ABB’s large-cap status and significant institutional interest, any fundamental developments or sectoral shifts could quickly influence price direction. Staying abreast of macroeconomic indicators, infrastructure policy updates, and quarterly earnings will be essential for informed decision-making.

Conclusion

ABB India Ltd’s recent option market activity highlights a nuanced market sentiment, blending long-term confidence with short-term caution. The heavy put option volumes near current trading levels underscore a defensive stance among investors, reflecting concerns over near-term risks despite the stock’s overall uptrend. As expiry approaches on 24 February 2026, market participants will be watching closely for price action around key strike prices to gauge the next directional move.

Investors should balance technical signals, option market data, and fundamental factors when considering positions in ABB India Ltd, ensuring that risk management remains a priority in a volatile environment.

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