Angel One Ltd Sees Heavy Put Option Activity Amid Bearish Market Sentiment

Angel One’s Market Performance and Put Option Surge

Angel One Ltd (NSE: ANGELONE), with a market capitalisation of approximately ₹21,386.31 crores, has been under pressure in recent sessions. The stock has declined by 2.58% on the day, underperforming its sector by 2.24%, and has recorded a consecutive five-day fall totalling an 8.93% loss. Intraday, the share price touched a low of ₹2343, down 2.79%, with the weighted average traded volume skewed towards the lower price range, indicating selling pressure.

Technically, Angel One is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — reinforcing the bearish momentum. Investor participation has notably increased, with delivery volumes on 29 Dec rising by over 100% compared to the five-day average, suggesting heightened activity from both retail and institutional players.

Put Option Activity Highlights Bearish Positioning

The most active put option for Angel One is at the 2300 strike price, expiring on 30 Dec 2025. On this expiry date, 5,707 contracts were traded, generating a turnover of ₹77.90 lakhs. Open interest stands at 623 contracts, reflecting sustained interest in downside protection or speculative bearish bets. The underlying stock price at ₹2353.2 is just above the strike price, indicating that traders are positioning for a potential decline below this level.

Such concentrated put activity near the current market price often signals hedging by long investors or outright bearish bets by traders anticipating further downside. The volume and open interest data suggest that market participants are actively managing risk or speculating on a near-term correction.

Sector and Market Context

Angel One operates within the capital markets sector, which has seen mixed performance recently. While the broader Sensex managed a marginal gain of 0.04% on the day, Angel One’s sector declined by 0.22%, highlighting relative weakness. The stock’s 1-day return of -2.32% contrasts sharply with the sector and benchmark indices, underscoring its current vulnerability.

Given the company’s Mojo Score of 54.0 and a Mojo Grade upgrade from Sell to Hold on 9 Dec 2025, the stock is in a transitional phase. The market appears cautious, balancing the recent upgrade against ongoing technical weakness and increased bearish option positioning.

Implications for Investors and Traders

The surge in put option activity at the 2300 strike price expiry on 30 Dec 2025 suggests that investors are either hedging existing long positions or speculating on further downside. The open interest of 623 contracts, while not extraordinarily high, is significant given the stock’s current liquidity and trading volumes.

Angel One’s liquidity profile supports sizeable trades, with a 2% threshold of the five-day average traded value allowing for trade sizes up to ₹2.54 crores without significant market impact. This liquidity facilitates active options trading and dynamic hedging strategies by institutional investors.

From a risk management perspective, the persistent decline over five sessions and the stock’s position below key moving averages warrant caution. Investors holding Angel One shares should consider the implications of rising put option volumes as a signal of increased downside risk or market uncertainty.

Technical and Fundamental Outlook

Technically, the stock’s failure to hold above short- and long-term moving averages indicates a bearish trend. The rising delivery volumes suggest that investors are actively repositioning, possibly reducing exposure or locking in profits. The Mojo Grade upgrade to Hold reflects some fundamental improvement or stabilisation, but the market’s reaction remains tepid.

Angel One’s capital markets industry exposure means it is sensitive to broader economic and regulatory developments. Any adverse news or sectoral headwinds could exacerbate the current downtrend, while positive catalysts might help reverse the bearish sentiment.

Expiry Patterns and Market Sentiment

The 30 Dec 2025 expiry date for the put options coincides with the end of the calendar year, a period often marked by portfolio rebalancing and risk adjustments. The concentration of put contracts at the 2300 strike price suggests that traders are bracing for potential volatility or a correction in the near term.

Such expiry dynamics can lead to increased price swings as traders unwind or roll over positions. The current open interest and turnover figures indicate that Angel One is a focal point for options traders seeking to capitalise on or protect against downside moves.

Conclusion: Navigating Angel One’s Current Market Landscape

Angel One Ltd’s recent trading patterns and option market activity highlight a cautious investor stance amid a weak technical backdrop. The heavy put option volume at the 2300 strike price expiry on 30 Dec 2025 underscores a bearish tilt or hedging demand, reflecting concerns over further downside risk.

While the Mojo Grade upgrade to Hold signals some fundamental stabilisation, the stock’s underperformance relative to its sector and the broader market suggests that investors should remain vigilant. Those holding Angel One shares may consider monitoring option market trends closely as a barometer of sentiment and risk, while traders might find opportunities in the heightened volatility around expiry.

Overall, Angel One’s current market environment demands a balanced approach, weighing the potential for recovery against the clear signals of bearish positioning and technical weakness.

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