Put Option Activity Highlights
On 26 February 2026, Dixon Technologies witnessed a remarkable surge in put option trading, with 1,318 contracts exchanged at the ₹10,000 strike price. This activity generated a turnover of approximately ₹20.29 crores, reflecting heightened investor interest in downside protection. The open interest for these puts stands at 1,997 contracts, indicating sustained bearish sentiment or hedging strategies ahead of the March expiry.
The underlying stock price at the time was ₹10,454, placing the ₹10,000 strike slightly out-of-the-money. This suggests that traders are positioning for a potential decline of around 4.3% from current levels within the next month. The expiry date of 30 March 2026 is a critical juncture, as option expiry often brings increased volatility and directional bets.
Stock Performance and Technical Context
Dixon Technologies’ stock performance on the day was marginally negative, declining by 0.09%, underperforming the Electronics & Appliances sector which gained 0.23%, and the broader Sensex which rose 0.24%. Notably, the stock has reversed its trend after seven consecutive days of decline, signalling a potential short-term recovery.
However, technical indicators remain cautious. The stock is trading below its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring persistent downward pressure. Additionally, investor participation appears to be waning, with delivery volumes on 25 February falling by 53.66% compared to the five-day average, suggesting reduced conviction among buyers.
Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹13.09 crores, ensuring that option and stock trades can be executed without significant market impact.
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Investor Sentiment and Hedging Implications
The pronounced put option activity at the ₹10,000 strike price suggests that investors are either hedging existing long positions or speculating on a near-term correction. Given the stock’s recent technical weakness and trading below all major moving averages, the bearish positioning is understandable.
Moreover, the open interest build-up indicates that these are not merely short-term speculative trades but potentially strategic hedges or directional bets. The expiry timeline of just over a month adds urgency to these positions, as investors seek protection or profit from anticipated volatility around quarterly results or sector developments.
It is also worth noting that Dixon Technologies’ Mojo Score has recently been downgraded from a Buy to a Hold on 3 November 2025, reflecting a more cautious outlook from fundamental analysts. The current Mojo Score stands at 51.0, with a Market Cap Grade of 2, categorising the stock as a mid-cap with moderate risk and reward potential.
Sector and Market Context
The Electronics & Appliances sector has shown resilience with a positive daily return of 0.23%, outperforming Dixon Technologies on the day. This divergence may indicate company-specific concerns or profit-taking by investors in Dixon amid broader sector strength.
Given the stock’s sizeable market capitalisation of ₹63,106.28 crores, it remains a significant player within the mid-cap universe. However, the recent decline in delivery volumes and the stock’s inability to breach key moving averages suggest that investor confidence is currently subdued.
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Outlook and Investor Considerations
Investors should weigh the increased put option activity as a signal of caution. While the stock has shown a short-term bounce after a prolonged decline, the technical and fundamental indicators remain mixed. The downgrade to Hold by MarketsMOJO analysts reflects tempered expectations amid sector volatility and company-specific challenges.
For those holding long positions, the surge in put options could be viewed as a prudent hedge against downside risk, especially with the ₹10,000 strike price offering a buffer below current market levels. Conversely, traders with a bearish outlook may find the current option premiums attractive for speculative short-term plays.
Given the stock’s liquidity and market cap, institutional investors can execute sizeable trades without undue price impact, but the falling delivery volumes suggest retail participation may be waning. This dynamic could lead to increased volatility as expiry approaches.
Overall, Dixon Technologies remains a stock to watch closely in the coming weeks, with option market activity providing valuable insights into investor sentiment and potential price trajectories.
Summary
Dixon Technologies’ position as the most active stock in put options trading highlights a growing bearish or hedging stance among investors. The ₹10,000 strike price put options expiring on 30 March 2026 have attracted significant volume and open interest, signalling expectations of near-term downside or volatility. Despite a recent technical rebound, the stock’s trading below all major moving averages and a downgrade to Hold suggest caution. Investors should monitor option market trends alongside fundamental developments to navigate this mid-cap Electronics & Appliances stock effectively.
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