Adani Enterprises Sees Heavy Put Option Activity Amid Bearish Sentiment

Put Option Activity Highlights

On the expiry date of 27 January 2026, Adani Enterprises witnessed a surge in put option contracts, with 2,850 contracts traded at the ₹1900 strike price. This activity generated a turnover of ₹139.23 lakhs, reflecting substantial investor interest in downside protection or speculative bearish bets. The open interest at this strike stands at 495 contracts, indicating that a sizeable number of positions remain open, potentially influencing price movements as expiry approaches.

The underlying stock closed at ₹1940.5, just 4.75% above its 52-week low of ₹1848, underscoring the proximity to critical support levels. The heavy put option volume at ₹1900 strike suggests that traders are positioning for a possible decline towards or below this level in the near term.

Price and Technical Context

Despite the bearish options activity, Adani Enterprises outperformed its diversified sector peers by 1.41% on the day, closing with a 3.92% gain compared to the sector’s 2.58% rise and the Sensex’s modest 0.37% advance. The stock opened with a gap up of 2.4% and touched an intraday high of ₹1950, a 4.6% increase from the previous close.

However, technical indicators paint a cautious picture. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling persistent downward momentum. This technical weakness aligns with the strong sell mojo grade of 20.0 assigned on 1 December 2025, upgraded from a sell rating, reflecting deteriorating fundamentals and market sentiment.

Investor participation has notably increased, with delivery volumes soaring to 20.21 lakh shares on 23 January, a staggering 487.63% rise over the five-day average. This heightened activity suggests that market participants are actively repositioning their holdings amid uncertainty.

Market Capitalisation and Sector Performance

Adani Enterprises is a large-cap stock with a market capitalisation of ₹2,15,001 crores, operating within the diversified industry and sector. The diversified sector itself gained 2.58% on the day, indicating broad-based strength. Yet, the stock’s underperformance relative to its moving averages and the strong sell mojo grade highlight underlying vulnerabilities.

The stock’s liquidity remains robust, with a trade size capacity of approximately ₹9.92 crores based on 2% of the five-day average traded value, ensuring that investors can enter or exit positions without significant price impact.

Bearish Positioning and Hedging Implications

The concentration of put option activity at the ₹1900 strike price, close to the current market price, suggests that traders are either hedging existing long positions or speculating on a near-term decline. The open interest of 495 contracts at this strike is significant, as it may act as a magnet for price action, with market makers potentially adjusting their hedges accordingly.

Given the stock’s proximity to its 52-week low and the technical weakness across multiple moving averages, the put option activity could be interpreted as a cautious stance by investors anticipating further downside or volatility. This is consistent with the mojo grade downgrade to strong sell, reflecting concerns over the company’s near-term prospects.

Comparative Analysis and Outlook

While Adani Enterprises has shown resilience by outperforming its sector on the day, the broader technical and options market signals point to a cautious outlook. The stock’s strong sell mojo grade, combined with heavy put option volumes, indicates that investors should closely monitor price action around the ₹1900 level and expiry dynamics on 27 January 2026.

Investors holding positions in Adani Enterprises may consider reviewing their exposure and hedging strategies in light of the increased bearish sentiment. The elevated delivery volumes and open interest suggest that market participants are actively recalibrating their risk profiles.

Conclusion: Navigating the Bearish Signals

Adani Enterprises’ heavy put option activity at the ₹1900 strike price on expiry day highlights a pronounced bearish sentiment among traders and investors. Despite short-term price gains and sector outperformance, the stock’s technical indicators and mojo grade suggest caution.

Market participants should watch for price reactions near the ₹1900 level and expiry-related volatility, which could provide trading opportunities or signal further downside risk. The elevated delivery volumes and open interest reinforce the need for prudent risk management and hedging strategies.

As the diversified sector continues to show strength, Adani Enterprises’ relative weakness and bearish positioning may prompt investors to reassess their portfolios and consider alternative investments with more favourable risk-reward profiles.

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