Dixon Technologies Sees Heavy Put Option Activity Amid Bearish Sentiment

Heavy Put Option Trading Highlights Investor Caution

On 21 Jan 2026, Dixon Technologies recorded a remarkable 4,426 put option contracts traded at the ₹10,500 strike price, generating a turnover of ₹320.64 lakhs. The open interest for these puts stands at 3,473 contracts, underscoring sustained investor interest in downside protection or speculative bearish bets. The underlying stock price closed at ₹10,456, just below the strike price, indicating that the puts are positioned close to the money, which often attracts hedging activity.

This level of put option activity is significant given the stock’s recent price action. Dixon Technologies hit a new 52-week low of ₹10,560 on the same day, marking a continuation of its downward trajectory. The stock has declined by 4.16% over the past two trading sessions, underperforming the broader Consumer Durables - Electronics sector, which itself fell by 2.06% on the day.

Technical Weakness Fuels Bearish Sentiment

Technically, Dixon Technologies is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a clear bearish trend. This comprehensive weakness across multiple timeframes often prompts investors to seek downside protection through put options or to position for further declines.

Additionally, delivery volumes have dropped sharply, with only 1.21 lakh shares delivered on 20 Jan, a 56.35% decline compared to the five-day average. This falling investor participation may indicate waning conviction among buyers, further supporting the bearish outlook.

Market Cap and Mojo Score Reflect Mid-Cap Status and Neutral Outlook

Dixon Technologies is classified as a mid-cap stock with a market capitalisation of approximately ₹63,599 crore. The company’s Mojo Score currently stands at 57.0, with a Mojo Grade of Hold, downgraded from Buy on 3 Nov 2025. This downgrade reflects a reassessment of the company’s near-term prospects amid the recent price weakness and sector headwinds.

Expiry Patterns and Strike Price Concentration

The put options expiring on 27 Jan 2026 have attracted the most attention, with the ₹10,500 strike price dominating volume and open interest. This expiry is just days away, suggesting that traders are positioning for a near-term correction or hedging existing long positions against further downside risk.

The concentration of activity at this strike price, which is marginally above the current market price, indicates a strategic choice by investors to balance premium costs with effective downside protection. The open interest of 3,473 contracts at this strike price is substantial, signalling that many market participants expect the stock to test or breach this level before expiry.

Sector and Broader Market Context

While Dixon Technologies has underperformed its sector, the broader Consumer Durables - Electronics segment has also faced pressure, declining 2.06% on the day. The Sensex, by comparison, was relatively stable, down just 0.08%, highlighting sector-specific challenges rather than a broad market sell-off.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹20.29 crore based on 2% of the five-day average. This liquidity facilitates active options trading and allows institutional investors to implement complex hedging strategies efficiently.

Investor Implications and Outlook

The surge in put option activity at Dixon Technologies signals a cautious or bearish stance among investors, likely driven by the stock’s technical weakness and recent price declines. For existing shareholders, this may suggest the need to consider protective strategies or reassess exposure amid uncertain near-term prospects.

Conversely, for traders, the active put market offers opportunities to capitalise on volatility or to hedge against further downside. The proximity of the strike price to the current market value and the impending expiry date create a dynamic environment for options strategies.

Conclusion: Bearish Positioning Dominates Near-Term Sentiment

Dixon Technologies’ recent put option activity highlights a market environment where investors are increasingly wary of further declines. The stock’s technical indicators, coupled with falling delivery volumes and a downgrade in Mojo Grade to Hold, reinforce a cautious outlook.

While the company remains a significant player in the Electronics & Appliances sector with a sizeable market cap, the current trading patterns suggest that investors are prioritising risk management and downside protection. Monitoring the stock’s price action around the ₹10,500 level and the expiry on 27 Jan 2026 will be crucial for gauging whether this bearish sentiment persists or if a reversal emerges.

Key Metrics at a Glance:

• Stock Price (21 Jan 2026): ₹10,456


• Put Option Strike Price: ₹10,500


• Put Contracts Traded: 4,426


• Put Option Turnover: ₹320.64 lakhs


• Put Option Open Interest: 3,473 contracts


• Market Cap: ₹63,598.66 crore (Mid Cap)


• Mojo Score: 57.0 (Hold, downgraded from Buy on 3 Nov 2025)


• Sector Performance (21 Jan 2026): -2.06%


• Sensex Performance (21 Jan 2026): -0.08%

Investors should continue to monitor option market dynamics alongside fundamental and technical developments to navigate the evolving landscape effectively.

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