Adani Enterprises Sees Heavy Put Option Activity Amid Bearish Sentiment

Put Option Activity Highlights

On 10 February 2026, Adani Enterprises recorded substantial put option volumes, with two strike prices dominating the activity: ₹2,100 and ₹2,200. The ₹2,200 strike saw the highest number of contracts traded at 8,303, generating a turnover of ₹1430.08 lakhs and an open interest of 3,563 contracts. Meanwhile, the ₹2,100 strike price accounted for 6,265 contracts traded, turnover of ₹572.83 lakhs, and an open interest of 1,872 contracts. These figures underscore a pronounced bearish sentiment, as traders seek downside protection or speculate on a potential decline below these levels.

The underlying stock price stood at ₹2,218 at the time, placing the ₹2,200 strike almost at-the-money and the ₹2,100 strike slightly out-of-the-money. The concentration of put activity near the current market price suggests investors are positioning for a possible correction or increased volatility in the near term.

Price Performance and Technical Context

Adani Enterprises underperformed its sector by 1.72% on the day, with the stock touching an intraday low of ₹2,171, down 3.52%. The weighted average traded price skewed closer to the day’s low, indicating selling pressure. Despite the stock trading above its 5-day, 20-day, and 50-day moving averages, it remains below the 100-day and 200-day averages, signalling mixed technical momentum and potential resistance at higher levels.

Investor participation has been rising, with delivery volumes reaching 6.49 lakh shares on 9 February, a 26.6% increase compared to the five-day average. Liquidity remains adequate, supporting trade sizes up to ₹11.81 crore based on 2% of the five-day average traded value, facilitating active options and equity trading.

Mojo Score and Rating Update

Adani Enterprises currently holds a Mojo Score of 37.0, categorised as a 'Sell' rating by MarketsMOJO, reflecting a downgrade from its previous 'Strong Sell' grade on 1 December 2025. The downgrade indicates a slight improvement in outlook but still signals caution for investors. The company’s market capitalisation stands at a robust ₹2,58,940 crore, classifying it as a large-cap stock within the diversified sector.

The downgrade and moderate Mojo Score align with the observed put option activity, suggesting that while some investors see value, a significant cohort remains wary of near-term downside risks. The stock’s one-day return of -1.51% contrasts with the sector’s positive 0.52% and Sensex’s 0.33% gains, further highlighting relative weakness.

Expiry Patterns and Investor Behaviour

The expiry date for the active put options is 24 February 2026, less than two weeks away. This proximity often intensifies hedging and speculative activity as traders adjust positions ahead of expiry. The elevated open interest at the ₹2,200 strike price suggests that many investors are either hedging existing long positions or speculating on a decline below this level.

Open interest data also reveals that the ₹2,200 strike has nearly double the open interest compared to the ₹2,100 strike, indicating a stronger focus on downside protection closer to the current market price. This pattern is typical when market participants anticipate potential volatility or a correction in the underlying stock.

Implications for Investors

For investors, the heavy put option activity serves as a cautionary signal. While the stock remains liquid and technically supported above short-term moving averages, the bearish positioning and recent downgrade suggest that downside risks cannot be ignored. Investors should monitor price action closely around the ₹2,200 level, which appears to be a critical support zone in the options market.

Hedging strategies using puts at these strike prices may be prudent for existing shareholders seeking to protect gains or limit losses. Conversely, traders looking to capitalise on volatility might consider the elevated premiums and liquidity in these put options as an opportunity for directional bets or spreads.

Sector and Market Context

Adani Enterprises operates within the diversified sector, which has shown mixed performance recently. The stock’s underperformance relative to its sector and the broader Sensex index reflects company-specific challenges and market sentiment. The diversified nature of Adani Enterprises’ business, spanning infrastructure, energy, and logistics, exposes it to multiple macroeconomic factors, including commodity price fluctuations and regulatory developments.

Given the current market environment, investors are increasingly cautious, as reflected in the options market. The put-heavy positioning may also indicate hedging against broader market volatility or sector-specific headwinds.

Outlook and Strategic Considerations

Looking ahead, the expiry on 24 February 2026 will be a key event to watch for shifts in open interest and price action. A breach below the ₹2,200 strike could trigger further downside momentum, while a rebound above short-term moving averages might alleviate bearish pressures.

Investors should weigh the company’s fundamentals, recent rating changes, and technical signals alongside the options market data to formulate a balanced view. The current Mojo Grade of 'Sell' suggests prudence, but the downgrade from 'Strong Sell' hints at potential stabilisation or recovery if positive catalysts emerge.

In summary, the heavy put option activity in Adani Enterprises reflects a cautious market stance, with investors actively hedging or speculating on downside risk. This dynamic, combined with recent price weakness and rating adjustments, underscores the importance of vigilant monitoring and risk management for stakeholders.

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