Put Option Activity Highlights
On 24 December 2025, Bajaj Finance recorded the highest volume of put option contracts traded among its peers, with 5,752 contracts exchanged at the 1020 strike price. The turnover for these contracts reached ₹2.39 crores, reflecting substantial investor interest in downside protection or bearish positioning. Open interest stood at 2,322 contracts, indicating a sustained level of outstanding put options yet to be exercised or closed.
The underlying stock price at the time was ₹1,035.7, placing the 1020 strike price slightly below the current market value. This suggests that market participants may be hedging against a potential near-term decline or positioning for a moderate correction ahead of the option expiry date.
Price Performance and Market Context
Bajaj Finance’s stock price has shown resilience, outperforming its sector by 1.32% on the day of analysis. The stock has recorded gains over two consecutive sessions, accumulating a return of 2.69% during this period. Intraday, the share price touched a high of ₹1,037.4, representing a 2.57% increase from the previous close.
Technical indicators reinforce this positive trend, with the stock trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Such positioning typically signals sustained bullish momentum and investor confidence in the company’s near-term prospects.
Investor participation has also shown signs of strengthening. Delivery volume on 23 December reached 29.08 lakh shares, marking a 1.52% rise compared to the five-day average delivery volume. This increase in delivery volume suggests that investors are committing to longer-term holdings rather than short-term speculative trades.
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Liquidity and Market Capitalisation
Bajaj Finance is classified as a large-cap stock with a market capitalisation of approximately ₹6,45,271 crore. The stock’s liquidity profile supports sizeable trade volumes, with the average traded value over five days allowing for trade sizes up to ₹9.15 crore based on 2% of the average value. This level of liquidity is favourable for institutional investors and traders seeking to execute large orders without significant market impact.
Interpreting the Put Option Interest
The concentration of put option activity at the 1020 strike price, just below the current market price, may reflect a cautious stance among some investors. Put options serve as a tool for hedging against potential downside risk or for speculative bearish bets. The open interest figure of 2,322 contracts indicates that a sizeable number of investors are maintaining these positions as the 30 December expiry approaches.
However, the simultaneous upward price movement and strong technical positioning suggest that the broader market sentiment remains constructive. This juxtaposition could imply that while some investors are seeking protection against volatility or a pullback, others are confident in the stock’s ability to sustain gains.
Sector and Benchmark Comparison
On the day under review, Bajaj Finance’s 1-day return of 2.53% notably outpaced the Non Banking Financial Company (NBFC) sector return of 0.99% and the broader Sensex gain of 0.18%. This relative strength highlights the stock’s appeal amid sectoral and market fluctuations.
Given the NBFC sector’s sensitivity to interest rate movements and credit conditions, Bajaj Finance’s performance may reflect investor confidence in its business model and asset quality. The company’s ability to maintain price levels above key moving averages further supports this view.
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Outlook and Investor Considerations
Investors analysing Bajaj Finance’s option activity should consider the dual signals presented by the put option volume and the stock’s price trajectory. The active put option interest near the 1020 strike price may be interpreted as a prudent risk management measure or a hedge against short-term volatility. Meanwhile, the stock’s technical strength and outperformance relative to its sector and benchmark indices suggest underlying confidence in its fundamentals.
Market participants may wish to monitor the evolution of open interest and price action as the 30 December expiry approaches, as shifts in these metrics could provide further insight into investor sentiment and potential price direction.
Overall, Bajaj Finance remains a focal point for traders and investors within the NBFC sector, combining robust liquidity, sizeable market capitalisation, and active derivatives market participation.
Summary
Bajaj Finance’s prominence in put option trading, particularly at the 1020 strike price expiring at the end of December, underscores a nuanced market stance balancing caution with optimism. The stock’s recent gains, technical positioning above multiple moving averages, and delivery volume trends complement this picture, offering a comprehensive view of its current market dynamics.
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