Put Option Activity Highlights
Data from the options market reveals that Bajaj Finance Ltd (BAJFINANCE) has become the most actively traded stock in put options for the upcoming expiry on 24 February 2026. The underlying stock closed at ₹957.85, with significant put option volumes clustered around strike prices of ₹900, ₹940, ₹950, and ₹960. The highest number of contracts traded was at the ₹950 strike, with 4,890 contracts exchanged, generating a turnover of ₹807.22 lakhs and an open interest of 2,597 contracts. Close behind, the ₹900 strike saw 4,599 contracts traded with an open interest of 3,251, indicating strong investor interest in downside protection at this level.
The ₹960 strike price also attracted substantial activity, with 3,138 contracts traded and a turnover of ₹616.85 lakhs, while the ₹940 strike recorded 2,891 contracts and a turnover of ₹395.27 lakhs. These figures underscore a concentrated bearish sentiment clustered just below and slightly above the current market price, suggesting that traders are positioning for potential downside or hedging existing long exposures.
Market Context and Stock Performance
Despite the heavy put option activity, Bajaj Finance Ltd’s stock price has shown resilience, gaining 1.06% over the last trading day but underperforming its sector by 1.2%. The stock touched an intraday low of ₹944.15, down 2.1%, indicating some volatility. Technical indicators show the stock trading above its 5-day and 20-day moving averages but still below its 50-day, 100-day, and 200-day averages, reflecting a mixed trend with potential resistance at higher levels.
Investor participation has notably increased, with delivery volumes rising by 85.33% to 96.58 lakh shares on 3 February 2026 compared to the five-day average. The stock’s liquidity remains robust, supporting trade sizes up to ₹18.3 crore based on 2% of the five-day average traded value, which facilitates active options and equity trading.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Investor Sentiment and Hedging Implications
The concentration of put option volumes at strike prices close to the current market price suggests that investors are increasingly cautious about near-term downside risks. The ₹900 and ₹940 strikes, in particular, have seen elevated open interest, indicating that market participants are either hedging existing long positions or speculating on a potential correction.
Given Bajaj Finance Ltd’s current Mojo Score of 65.0 and a Mojo Grade of Hold—downgraded from Buy on 1 February 2026—there is a clear shift in analyst sentiment. The downgrade reflects concerns over valuation and sector headwinds, which may be influencing the increased put buying as a protective measure. The company’s market capitalisation stands at a substantial ₹5,94,091.46 crore, categorising it as a large-cap stock, which typically attracts institutional hedging activity.
Options Expiry Patterns and Strategic Positioning
The expiry date of 24 February 2026 is a critical juncture for options traders. The clustering of put option activity around the ₹900 to ₹960 strikes indicates that traders are positioning for a range-bound or slightly bearish scenario in the near term. The open interest data, with over 2,000 contracts at multiple strikes, suggests that these levels could act as significant support or resistance zones in the options market.
Such patterns often precede increased volatility as expiry approaches, with traders adjusting their positions based on evolving market conditions. The relatively high turnover in put options compared to calls signals a tilt towards downside protection or bearish speculation, which could translate into increased price swings in the underlying stock.
Holding Bajaj Finance Ltd from Non Banking Financial Company (NBFC)? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Comparative Sector Performance and Outlook
Bajaj Finance Ltd’s recent underperformance relative to its NBFC sector peers, which gained 0.45% on the same day, and the broader Sensex’s 0.23% rise, highlights the stock’s vulnerability amid sector rotation and macroeconomic concerns. The NBFC sector has been grappling with tightening credit conditions and regulatory scrutiny, factors that may be weighing on investor confidence.
Analysts note that while Bajaj Finance Ltd remains a dominant player with strong fundamentals, the current market environment warrants caution. The downgrade from Buy to Hold by MarketsMOJO’s Investment Committee reflects this tempered outlook, emphasising the need for investors to monitor risk closely and consider hedging strategies.
Technical Indicators and Moving Averages
From a technical perspective, the stock’s position above its short-term moving averages (5-day and 20-day) but below longer-term averages (50-day, 100-day, and 200-day) suggests a consolidation phase. This mixed technical picture aligns with the increased put option activity, as traders seek to protect gains or speculate on a potential pullback.
Should the stock breach the ₹900 strike decisively, it could trigger further downside momentum, validating the bearish positioning observed in the options market. Conversely, a rebound above the 50-day moving average could alleviate some concerns and reduce put option demand.
Conclusion: Navigating Bajaj Finance Ltd’s Near-Term Risks
The surge in put option trading for Bajaj Finance Ltd ahead of the 24 February 2026 expiry underscores a cautious market stance. Investors and traders appear to be hedging against downside risks or positioning for a correction within a narrow price band. The stock’s recent downgrade to Hold and its underperformance relative to sector and benchmark indices add to the cautious sentiment.
Market participants should closely monitor open interest trends and price action around key strike prices, particularly ₹900 and ₹950, to gauge the evolving risk-reward profile. Given the stock’s liquidity and active options market, strategic hedging and selective trading could be prudent approaches in the current environment.
Overall, while Bajaj Finance Ltd remains a heavyweight in the NBFC sector, the current options market activity signals that investors are bracing for potential volatility and downside risk in the near term.
Unlock special upgrade rates for a limited period. Start Saving Now →
