Adani Ports Sees Heavy Put Option Activity Amid Bearish Sentiment Despite Price Gains

Put Option Surge Reflects Growing Bearish Sentiment

On 3 February 2026, Adani Ports witnessed a remarkable spike in put option activity, with 2,907 contracts traded at the ₹1,500 strike price expiring on 24 February 2026. This volume translated into a turnover of approximately ₹549.7 lakhs, underscoring significant investor interest in downside protection or speculative bearish bets. Open interest for these puts stands at 1,273 contracts, indicating sustained positioning rather than a one-off trade.

The underlying stock closed at ₹1,496.7, just 3.05% shy of its 52-week high of ₹1,549, suggesting that while the stock has been resilient, market participants are increasingly wary of a potential pullback. The put option activity at a strike price slightly above the current market price suggests hedging against a moderate decline or a strategic bearish stance.

Stock Performance and Market Context

Adani Ports has delivered an impressive 11.77% return over the last two trading sessions, with a notable 7.28% gain on 3 February alone. The stock opened with a gap up of 5.28% and touched an intraday high of ₹1,520, representing an 8.33% increase from the previous close. It continues to trade above its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a strong technical uptrend.

However, despite this bullish momentum, the stock underperformed its sector benchmark marginally by 0.65% on the day. The transport infrastructure sector itself gained 7.37%, while the broader Sensex rose 2.56%. This relative underperformance, coupled with falling investor participation as evidenced by a 30.74% decline in delivery volume to 12.26 lakh shares on 2 February, may be contributing to the cautious stance reflected in options markets.

Market Capitalisation and Mojo Ratings

Adani Ports commands a substantial market capitalisation of ₹3,46,861.04 crores, categorising it firmly as a large-cap stock. Despite its size and recent price strength, the company’s Mojo Score has deteriorated to 47.0, with a downgrade from a Hold to a Sell rating on 2 February 2026. This downgrade reflects concerns over valuation, momentum, or other fundamental factors that may be influencing investor sentiment and option positioning.

Expiry Patterns and Strike Price Significance

The concentration of put option trades at the ₹1,500 strike price, which is marginally above the current market price, is particularly telling. This strike level acts as a psychological support zone for traders and investors. The expiry date of 24 February 2026 is just three weeks away, intensifying the focus on short-term price movements and volatility expectations.

Such heavy put activity often indicates hedging by institutional investors seeking to protect gains accrued during the recent rally or speculative positioning by traders anticipating a correction. The open interest data confirms that these are not merely intraday trades but part of a broader strategy to manage risk or capitalise on potential downside.

Sectoral and Broader Market Implications

Within the transport infrastructure sector, Adani Ports remains a bellwether stock. Its recent outperformance has been a key driver for sector gains, yet the slight underperformance relative to peers on 3 February and the increased put option interest may signal a cautious outlook among market participants. Investors should monitor whether this bearish positioning intensifies or dissipates as the expiry date approaches.

Moreover, the stock’s liquidity profile supports sizeable trades, with the ability to handle a trade size of approximately ₹8.59 crores based on 2% of the five-day average traded value. This liquidity ensures that option market activity is a reliable indicator of genuine investor sentiment rather than thin-market anomalies.

Investor Takeaways and Outlook

For investors, the heavy put option activity in Adani Ports signals a need for caution despite the stock’s recent rally and technical strength. The downgrade to a Sell rating by MarketsMOJO and the Mojo Score of 47.0 reflect underlying concerns that may not yet be fully priced in. The proximity of the ₹1,500 strike price puts to the current market price suggests that a correction or consolidation phase could be imminent.

Investors holding long positions may consider protective strategies such as buying puts or tightening stop-loss levels. Conversely, traders with a bearish outlook might view the current option activity as confirmation of downside potential in the near term. Monitoring open interest changes and price action as the 24 February expiry approaches will be crucial for timely decision-making.

In summary, while Adani Ports remains a large-cap leader in the transport infrastructure sector with strong liquidity and recent gains, the surge in put option volumes and the downgrade in fundamental ratings highlight a growing risk of near-term volatility and potential price correction.

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