Key Events This Week
5 Jan: Heavy put option activity at 2,100 strike amid bullish price start
8 Jan: Sharp price decline of 2.22% on increased selling volume
9 Jan: Further put option surge at 2,000 and 2,040 strikes; stock closes near weekly low
9 Jan: Technical indicators confirm bearish momentum; Mojo Grade downgraded to Strong Sell
5 January: Early Week Optimism Amid Heavy Put Option Activity
Godrej Properties began the week on a positive note, rallying 2.80% to close at Rs.2,123.85, outperforming the Sensex which declined 0.18%. This gain was accompanied by a surge in put option volumes at the 2,100 strike price, with 7,831 contracts traded and a turnover exceeding ₹1,060 lakhs. The open interest of 694 contracts indicated sustained bearish hedging despite the stock’s upward momentum.
This divergence between the equity’s strength and the derivatives market suggested investor caution, with many positioning for potential downside or volatility ahead of the January expiry. The stock traded above its 5-day, 20-day, and 100-day moving averages, yet remained below longer-term averages, reflecting a mixed technical backdrop.
6-7 January: Modest Gains Amid Market Weakness
On 6 January, the stock edged up 0.11% to Rs.2,126.20 despite the Sensex falling 0.19%. Volume declined sharply to 12,588 shares, signalling reduced trading activity. The following day, 7 January, saw a further 0.62% gain to Rs.2,139.35, marking the week’s high close. The Sensex marginally recovered by 0.03%, but overall market sentiment remained subdued.
These modest gains reflected short-term resilience, but the low volumes and persistent bearish option positioning hinted at underlying fragility. The stock’s intraday high of Rs.2,165.30 on 9 January would later be tested by selling pressure.
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8 January: Sharp Decline Signals Growing Bearish Pressure
The stock reversed sharply on 8 January, falling 2.22% to Rs.2,091.75 on increased volume of 18,504 shares. This decline coincided with a 1.41% drop in the Sensex, reflecting broader market weakness. The stock’s intraday low of Rs.2,086.85 indicated heightened selling interest, and it breached several short-term moving averages, signalling a shift in momentum.
Delivery volumes declined by 28.41% compared to the five-day average, suggesting waning conviction among long-term holders. The heavy put option activity observed earlier in the week appeared prescient as the stock began to test critical support levels near Rs.2,100.
9 January: Bearish Momentum Confirmed by Technicals and Put Option Surge
On the final trading day of the week, Godrej Properties closed at Rs.1,993.10, down 4.72%, marking the week’s low and underperforming the Sensex’s 0.89% decline. Put option volumes surged again, with 6,669 contracts traded at the 2,000 strike and 2,210 at the 2,040 strike, generating combined turnover exceeding ₹1,300 lakhs and open interest of over 2,100 contracts.
The stock traded below all key moving averages, confirming a bearish trend. Technical indicators such as MACD and KST oscillators signalled sustained downward momentum, while the Mojo Score was downgraded to 3.0 with a Strong Sell grade. Despite some longer-term bullish RSI signals, the short-term outlook remained negative.
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Daily Price Comparison: Godrej Properties vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-05 | Rs.2,123.85 | +2.80% | 37,730.95 | -0.18% |
| 2026-01-06 | Rs.2,126.20 | +0.11% | 37,657.70 | -0.19% |
| 2026-01-07 | Rs.2,139.35 | +0.62% | 37,669.63 | +0.03% |
| 2026-01-08 | Rs.2,091.75 | -2.22% | 37,137.33 | -1.41% |
| 2026-01-09 | Rs.1,993.10 | -4.72% | 36,807.62 | -0.89% |
Key Takeaways
Positive Signals: The stock showed early resilience with gains on the first three trading days, outperforming the Sensex and its sector peers. Longer-term technical indicators such as the monthly RSI and historical returns remain supportive, reflecting underlying fundamental strength and growth potential.
Cautionary Signals: Heavy put option activity at critical strike prices throughout the week highlighted growing bearish sentiment and hedging demand. The stock’s failure to sustain gains, coupled with sharp declines on 8 and 9 January, confirmed a shift to bearish momentum. The downgrade to a Strong Sell Mojo Grade and technical indicators trading below key moving averages reinforce the risk of further downside.
Investor participation has declined, as evidenced by reduced delivery volumes, suggesting waning conviction among long-term holders. The clustering of open interest near Rs.2,000 strike price will be a key level to watch for potential support or further breakdown.
Conclusion
Godrej Properties Ltd experienced a challenging week marked by a 3.53% decline amid a broader market downturn. Early optimism was tempered by sustained bearish option market activity and deteriorating technical momentum. The stock’s underperformance relative to the Sensex and its sector peers, combined with a Strong Sell rating, signals elevated near-term risks.
While longer-term fundamentals and some technical indicators offer a degree of support, the prevailing market sentiment and price action suggest caution. Investors should monitor key support levels around Rs.2,000 and the evolving derivatives landscape closely. The coming weeks will be critical in determining whether the stock can stabilise or face further pressure amid sector headwinds and market volatility.
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