Godrej Properties Sees Heavy Put Option Activity Amid Bearish Market Sentiment

Intense Put Option Trading Highlights Bearish Positioning

On 9 January 2026, Godrej Properties (NSE: GODREJPROP) emerged as one of the most actively traded stocks in the put options segment. The January 27 expiry contracts at strike prices ₹2,040 and ₹2,000 attracted substantial volumes, with 2,210 and 6,669 contracts traded respectively. This translated into a combined turnover exceeding ₹1.3 crore, underscoring the strong interest in downside protection or speculative bearish bets.

The open interest figures further reinforce this trend, with 450 contracts outstanding at the ₹2,040 strike and a notably higher 1,739 contracts at the ₹2,000 strike. Given the underlying stock price hovered around ₹2,013.7, the concentration of activity near and slightly below the current market price suggests investors are bracing for potential declines or increased volatility in the coming weeks.

Price Action and Technical Weakness

Godrej Properties has underperformed its Realty sector peers, falling 2.27% on the day and registering a 4.11% decline over the last trading session. The stock has been on a downward trajectory for two consecutive days, cumulatively losing 6.03% in that period. Intraday lows touched ₹2,008.4, with weighted average traded prices skewed towards these lower levels, indicating selling pressure.

Technically, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend. This technical deterioration is compounded by a 28.41% drop in delivery volume compared to the five-day average, suggesting waning investor participation and confidence.

Sectoral and Market Context

The Realty sector itself has been under pressure, with the sector index declining 1.67% on the same day, while the broader Sensex index showed marginal losses of 0.19%. Godrej Properties’ sharper decline relative to its sector peers highlights company-specific concerns or profit-taking by investors amid a cautious market environment.

With a market capitalisation of approximately ₹60,509 crore, Godrej Properties is classified as a mid-cap stock. Its Mojo Score currently stands at 3.0, with a Strong Sell grade assigned on 3 November 2025, upgraded from a Sell rating. This downgrade reflects deteriorating fundamentals or technical outlook, which may be influencing the surge in bearish option activity.

Investor Sentiment and Hedging Strategies

The pronounced activity in put options at strike prices close to the current market value suggests investors are either hedging existing long positions or speculating on further downside. The ₹2,000 strike, in particular, has attracted nearly three times the open interest compared to the ₹2,040 strike, indicating a stronger conviction that the stock could breach this level before expiry.

Put options serve as a protective tool against declines, and the elevated turnover of ₹947.43 lakh at the ₹2,000 strike highlights the cost investors are willing to pay for downside insurance. This is consistent with the stock’s recent underperformance and the broader cautious stance in the Realty sector.

Expiry Patterns and Market Implications

The January 27 expiry date is just over two weeks away, a critical period during which market participants will closely monitor quarterly results, sectoral developments, and macroeconomic indicators. The clustering of put option activity around this expiry suggests traders are positioning for potential volatility or negative catalysts in the near term.

Given the stock’s liquidity profile, with a 5-day average traded value sufficient to support trades up to ₹2.74 crore, the market can absorb sizeable option-related hedging flows without excessive price distortion. However, sustained bearish positioning could exert downward pressure on the underlying stock if put writers hedge their exposure by short selling shares.

Fundamental and Technical Outlook

Godrej Properties’ downgrade to a Strong Sell by MarketsMOJO reflects concerns over its earnings prospects, valuation, and technical momentum. The company’s Mojo Grade of 3.0 and Market Cap Grade of 2 further indicate below-average quality and market standing within the Realty sector.

Investors should weigh these factors carefully, especially given the stock’s recent underperformance relative to sector and benchmark indices. The combination of technical weakness, falling investor participation, and heavy put option activity paints a cautious picture for the stock’s short-term trajectory.

Conclusion: Cautious Approach Recommended

In summary, the surge in put option volumes and open interest at strike prices near the current market level, combined with technical weakness and a Strong Sell rating, suggest that Godrej Properties is facing significant bearish pressure. Investors should remain cautious and consider hedging strategies or alternative investments within the Realty sector.

Monitoring upcoming corporate announcements and sectoral trends will be crucial in assessing whether this bearish momentum will persist or if a reversal could materialise. Until then, the elevated put option activity serves as a clear signal of market participants’ guarded outlook on Godrej Properties’ near-term prospects.

Unlock special upgrade rates for a limited period. Start Saving Now →