Adani Ports Sees Surge in Put Option Activity Amid Bearish Market Sentiment

Heavy Put Option Volume Highlights Bearish Positioning

On 23 January 2026, Adani Ports emerged as the most active stock in put options trading, with 15,530 contracts exchanged at the 1300 strike price for the expiry date of 27 January 2026. This volume translated into a turnover of approximately ₹989.22 lakhs, underscoring the substantial interest in downside protection or speculative bearish bets. The open interest at this strike stands at 760 contracts, indicating that a sizeable number of traders are maintaining or initiating positions anticipating further downside.

The underlying stock price was ₹1307.5 at the time, hovering just above the 1300 strike, which suggests that traders are positioning for a potential breach of this key support level. The weighted average price of traded options clustered near the intraday low, reinforcing the notion of increased put buying as the stock price declined.

Price Action and Volatility Confirm Market Caution

Adani Ports’ share price has been under pressure, falling by 7.55% on the day, in line with the transport infrastructure sector’s decline of 7.70%. The stock touched an intraday low of ₹1295, down 8.43%, and traded below all major moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a bearish technical setup. The intraday volatility was elevated at 5.42%, reflecting heightened uncertainty and rapid price swings.

Investor participation has also risen, with delivery volumes reaching 8.71 lakh shares on 22 January, a 3.01% increase over the five-day average. This suggests that market participants are actively adjusting their holdings amid the recent price weakness. Liquidity remains adequate, with the stock capable of handling trade sizes up to ₹4.83 crore based on 2% of the five-day average traded value, facilitating smooth execution of large option and equity trades.

Mojo Score Upgrade Reflects Mixed Market View

Adani Ports currently holds a Mojo Score of 57.0 with a Mojo Grade of Hold, upgraded from Sell on 8 September 2025. Despite the recent downgrade in price momentum and increased bearish option activity, the fundamental assessment remains cautiously neutral. The company’s large market capitalisation of ₹3,22,093 crore and its dominant position in the transport infrastructure sector provide a solid base, but near-term headwinds are evident.

The market cap grade is 1, indicating a very large-cap status, which typically attracts institutional interest and provides relative stability. However, the recent price action and option market dynamics suggest that investors are hedging against potential further declines or volatility spikes.

Expiry Patterns and Strike Price Significance

The 27 January 2026 expiry is attracting concentrated put option activity at the 1300 strike price, which is close to the current market price. This strike acts as a psychological and technical support level. The high volume and turnover at this strike imply that traders expect the stock to test or breach this level imminently. Such positioning can be interpreted as a hedge against downside risk or outright bearish speculation.

Open interest data reveals that while 760 contracts remain outstanding, the fresh volume of 15,530 contracts traded on the day indicates a surge in new positions. This could be driven by institutional investors seeking protection for their long equity holdings or traders anticipating a correction following the recent two-day gain reversal.

Sectoral Context and Broader Market Impact

The transport infrastructure sector has been under pressure, with the port sub-sector declining by 8.01% on the day. Adani Ports’ performance is broadly in line with sector trends, reflecting macroeconomic concerns such as slowing trade volumes, regulatory scrutiny, or rising interest rates impacting capital-intensive infrastructure stocks.

In contrast, the Sensex declined by a modest 0.77%, highlighting the sector-specific weakness that is driving the stock’s volatility and option market activity. Investors are likely recalibrating risk exposure within this space, favouring defensive or hedged positions amid uncertain economic conditions.

Investor Implications and Outlook

The surge in put option activity at a strike price near the current market level, combined with the stock’s breach of key moving averages and elevated volatility, signals a cautious outlook for Adani Ports in the near term. 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 view may find the current option premiums attractive for speculative positions, given the heightened volatility and potential for further downside. However, the stock’s large-cap status and fundamental strength suggest that any correction could be temporary, with long-term prospects tied to infrastructure growth and trade volumes.

Market participants should monitor the expiry on 27 January closely, as option expiry dynamics could induce additional price swings. The interplay between open interest unwinding and fresh positioning will be critical in determining the stock’s direction in the coming days.

Conclusion

Adani Ports & Special Economic Zone Ltd is currently at a technical and sentiment crossroads, with significant put option activity reflecting investor caution and hedging demand. While the fundamental outlook remains stable, near-term price action is likely to be volatile as the stock tests key support levels. Investors and traders alike should remain vigilant and consider option market signals as part of their risk management and investment decision-making process.

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