Adani Enterprises Sees Surging Put Option Activity Amid Bearish Market Sentiment

Surge in Put Option Volumes Reflects Bearish Market Sentiment

On 23 January 2026, Adani Enterprises witnessed an extraordinary surge in put option contracts, with 13,591 contracts traded at the ₹1,900 strike and 13,833 contracts at the ₹2,000 strike, making these the most actively traded put options on the National Stock Exchange. The combined turnover for these strikes exceeded ₹2,686 lakhs, underscoring the substantial capital flowing into bearish bets on the stock.

The open interest figures further reinforce this trend, with 766 contracts open at the ₹1,900 strike and 1,009 contracts at ₹2,000, indicating sustained investor interest in downside protection or speculative short positions as the expiry date approaches.

Price Action and Volatility Support Bearish Outlook

Adani Enterprises’ underlying share price closed near ₹1,901 on the day of heavy put activity, having hit a new 52-week low of ₹1,895.6 intraday. The stock underperformed its diversified sector peers by 5.94%, with a day’s low reflecting a steep 9.14% drop. This sharp decline was accompanied by elevated intraday volatility of 5.76%, calculated from the weighted average price, signalling heightened uncertainty and risk aversion among investors.

Technical indicators also point to a bearish trend, with the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — suggesting sustained downward momentum. The sector itself declined by 2.72%, but Adani Enterprises’ sharper fall highlights company-specific pressures.

Fundamental Deterioration and Market Cap Concerns

Adani Enterprises, a large-cap diversified conglomerate with a market capitalisation of ₹2,39,966 crores, has seen its Mojo Score deteriorate to 20.0, earning a Strong Sell grade as of 1 December 2025, down from a previous Sell rating. This downgrade reflects concerns over the company’s financial health, operational challenges, and valuation risks.

The market cap grade of 1 further emphasises the stock’s vulnerability despite its large-cap status, signalling weak investor confidence and potential for further downside. The day’s trading volume and liquidity remain adequate, with delivery volumes of 2.88 lakh shares on 22 January 2026, although this represents a 13.46% decline against the five-day average, indicating waning investor participation.

Expiry Patterns and Investor Positioning

The concentration of put option activity at the ₹1,900 and ₹2,000 strikes, both close to the current market price, suggests investors are positioning for a potential further decline or hedging existing long exposures. The expiry on 27 January 2026 is imminent, which often leads to increased option volumes as traders adjust or close positions.

Given the stock’s recent volatility and downward trajectory, these strike prices represent critical support levels where investors expect the stock to test or breach. The high open interest at these strikes indicates that many market participants are either speculating on a drop below these levels or seeking insurance against downside risk.

Comparative Sector and Market Performance

Adani Enterprises’ 1-day return of -8.45% starkly contrasts with the diversified sector’s decline of -2.48% and the broader Sensex’s modest fall of -0.91%. This divergence highlights company-specific challenges that are not fully reflected in sector or market indices.

Investors should note that the stock’s liquidity remains sufficient for sizeable trades, with a 2% threshold of the five-day average traded value supporting trade sizes up to ₹4.49 crores. This liquidity facilitates active options trading and allows institutional players to implement complex hedging strategies.

Implications for Investors and Traders

The pronounced put option activity signals a cautious or bearish stance among market participants towards Adani Enterprises. Investors holding long positions may consider protective strategies such as buying puts or tightening stop-loss levels to mitigate downside risk. Conversely, traders with a bearish outlook might view the current option volumes as confirmation of a potential further decline, presenting opportunities for short selling or put writing strategies.

However, the stock’s large-cap status and diversified business model mean that any recovery or positive news flow could quickly alter market sentiment. Close monitoring of price action around the ₹1,900 and ₹2,000 levels will be crucial in the coming days, especially as the January expiry approaches.

Conclusion

Adani Enterprises Ltd is currently under significant bearish pressure, as evidenced by the heavy put option volumes and deteriorating technical and fundamental indicators. The stock’s recent 52-week low, coupled with a downgrade to a Strong Sell Mojo Grade, underscores the challenges ahead. Investors and traders should remain vigilant, employing risk management strategies while assessing alternative investment opportunities within the diversified sector and broader market.

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