Bharti Airtel Sees Heavy Put Option Activity Amid Bearish Market Sentiment

Put Option Activity Highlights

On 27 February 2026, Bharti Airtel witnessed a significant surge in put option volumes, with 3,587 contracts traded at the ₹1,900 strike price for the expiry dated 30 March 2026. This activity generated a turnover of approximately ₹66.31 crores, reflecting substantial investor interest in downside protection or speculative bearish bets. The open interest for these puts stands at 2,054 contracts, indicating that a sizeable number of positions remain open and could influence price dynamics as expiry approaches.

The underlying stock price closed at ₹1,883.60, marginally below the ₹1,900 strike, which suggests that these puts are near-the-money and thus carry significant intrinsic value potential if the stock declines further. This proximity often attracts traders looking to hedge existing long positions or to capitalise on anticipated downward moves.

Market and Sector Context

Bharti Airtel’s share price has been under pressure, falling 2.12% on the day, in line with the broader telecommunication services sector which declined by 2.19%. The stock touched an intraday low of ₹1,882, marking a 2.47% drop from previous levels. Notably, the share price is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend and weak technical momentum.

Investor participation has also intensified, with delivery volumes rising to 60.1 lakh shares on 26 February, a 49.9% increase compared to the five-day average. This heightened activity underscores growing market interest and possibly increased hedging demand amid volatility.

Despite the recent downgrading of Bharti Airtel’s Mojo Grade from Buy to Hold on 29 December 2025, the company maintains a Mojo Score of 58.0, reflecting a moderate outlook. The market capitalisation remains robust at ₹10,86,964 crores, categorising it firmly as a large-cap stock with significant liquidity, capable of supporting sizeable trades up to ₹31.31 crores based on average traded value.

Implications of Heavy Put Option Trading

The concentration of put option activity at the ₹1,900 strike price suggests that investors are bracing for potential downside risks in Bharti Airtel’s share price over the coming month. Put options serve as a hedge against falling prices or as a speculative instrument to profit from declines. The sizeable open interest and turnover indicate that market participants are either protecting long positions or positioning for a bearish scenario.

Given the stock’s current trading below all key moving averages and the sector’s negative momentum, this put buying could reflect a cautious stance amid concerns over competitive pressures, regulatory challenges, or broader macroeconomic factors impacting the telecom industry.

Technical and Fundamental Considerations

Technically, Bharti Airtel’s failure to hold above its short- and long-term moving averages points to a weakening trend. The 5-day average has been breached decisively, and the 200-day moving average, often considered a critical support level, remains out of reach. This technical backdrop supports the rationale for increased put option interest as traders seek downside protection.

Fundamentally, while Bharti Airtel remains a dominant player in the telecom services sector with a large market cap and solid delivery volumes, the downgrade from Buy to Hold by MarketsMOJO on 29 December 2025 signals tempered expectations. The Mojo Score of 58.0 and a Market Cap Grade of 1 reflect a moderate quality rating, suggesting that while the company is stable, it may face near-term headwinds that warrant caution.

Expiry Patterns and Investor Strategy

The expiry date of 30 March 2026 for the active put options provides a timeline for investors’ risk horizon. With roughly a month remaining, traders are likely positioning for potential volatility or a correction in the stock price. The strike price of ₹1,900, slightly above the current market price, acts as a psychological and technical barrier, making these puts attractive for hedging or speculative purposes.

Investors should monitor open interest trends and price movements closely as expiry approaches, as shifts in these metrics can signal changes in market sentiment or trigger price adjustments. The interplay between put option activity and underlying stock performance will be crucial in assessing the near-term outlook for Bharti Airtel.

Comparative Sector Performance and Outlook

Bharti Airtel’s 1-day return of -2.45% slightly underperformed the telecom sector’s decline of -2.15% and the broader Sensex’s fall of -0.81%. This relative weakness highlights the stock’s vulnerability amid sectoral headwinds. The telecom services sector continues to face challenges including pricing pressures, regulatory scrutiny, and capital expenditure demands for network expansion and 5G rollout.

Investors should weigh these factors alongside the technical signals and option market activity when considering their exposure to Bharti Airtel. The current put option interest may serve as an early warning of increased risk or a prudent hedging measure in a volatile environment.

Conclusion

In summary, the surge in put option trading in Bharti Airtel Ltd at the ₹1,900 strike price expiring on 30 March 2026 reflects a cautious and somewhat bearish stance among investors. The stock’s technical weakness, coupled with a downgrade to Hold and sectoral pressures, supports the view that market participants are seeking protection or positioning for downside risk. While Bharti Airtel remains a large-cap heavyweight with strong liquidity, the current market signals advise careful monitoring and risk management ahead of the upcoming expiry.

Investors should continue to track open interest trends, price action, and sector developments to gauge the evolving sentiment and adjust their strategies accordingly.

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