Godrej Properties Sees Heavy Put Option Activity Amid Bearish Sentiment

Surge in Put Option Trading

On 5 January 2026, Godrej Properties Ltd (NSE: GODREJPROP) emerged as the most active stock in put options trading, with the 27 January 2026 expiry seeing a remarkable volume of 7,831 contracts traded at the ₹2,100 strike price. This activity generated a turnover of approximately ₹1,060.18 lakhs, underscoring the substantial interest in downside protection or speculative bearish bets on the stock.

The open interest for these put options stands at 694 contracts, indicating that a sizeable number of traders are maintaining their bearish positions or hedges as the expiry date approaches. The underlying stock price at the time was ₹2,102.5, hovering just above the strike price, which suggests that market participants are bracing for potential downside or volatility in the near term.

Stock Performance and Technical Context

Interestingly, Godrej Properties has outperformed its Realty sector peers by 0.94% on the day, with a 1-day return of 1.91% compared to the sector’s 1.04%. The stock has also recorded a consecutive four-day gain, delivering a cumulative return of 6.31% during this period. On 5 January, the stock touched an intraday high of ₹2,123.5, marking a 2.66% increase from the previous close.

From a technical standpoint, the stock price is trading above its 5-day, 20-day, and 100-day moving averages, signalling short- to medium-term strength. However, it remains below the 50-day and 200-day moving averages, which may indicate resistance levels and a lack of sustained long-term momentum. This mixed technical picture could be contributing to the cautious stance reflected in the heavy put option activity.

Investor participation appears to be waning slightly, with delivery volume on 2 January falling by 9.42% against the 5-day average, despite the stock’s recent gains. Liquidity remains adequate, with the stock supporting trade sizes of up to ₹1.34 crore based on 2% of the 5-day average traded value.

Mojo Score and Market Sentiment

Godrej Properties carries a Mojo Score of 9.0, categorised as a Strong Sell, reflecting deteriorated fundamentals and negative market outlook. This is a downgrade from its previous Sell rating, which was revised on 3 November 2025. The company’s market capitalisation stands at ₹62,681 crore, placing it in the mid-cap segment, but its Market Cap Grade is a low 2, indicating limited strength relative to peers.

The bearish sentiment is further corroborated by the heavy put option activity, which often serves as a hedge against potential price declines or a speculative bet on downside moves. The ₹2,100 strike price is particularly noteworthy as it sits just below the current market price, suggesting traders are positioning for a possible correction or volatility around this level.

Expiry Patterns and Investor Strategies

The expiry date of 27 January 2026 is critical, as options traders typically adjust their positions in the final weeks leading up to expiry. The concentration of put contracts at the ₹2,100 strike price indicates a focal point for market expectations. Investors may be using these puts to hedge existing long positions or to speculate on a pullback given the stock’s recent run-up and technical resistance.

Given the stock’s mixed technical signals and the broader Realty sector dynamics, the surge in put option volume could also reflect concerns about sector-specific headwinds such as regulatory changes, interest rate fluctuations, or slowing demand in the real estate market.

Balancing Recent Gains with Caution

While Godrej Properties has demonstrated resilience with a four-day winning streak and outperformance relative to its sector, the heavy put option activity signals that investors remain cautious. The stock’s inability to decisively break above its 50-day and 200-day moving averages may be limiting bullish conviction, prompting traders to seek downside protection.

Moreover, the Realty sector’s inherent cyclicality and sensitivity to macroeconomic factors such as interest rates and government policies continue to weigh on investor sentiment. The current put option interest could be a reflection of these broader concerns, as well as company-specific risks highlighted by the Strong Sell Mojo Grade.

Investors should closely monitor price action around the ₹2,100 level and expiry dynamics in the coming weeks to gauge whether the bearish positioning will translate into actual price declines or if the stock can sustain its recent momentum.

Outlook and Investor Considerations

Given the mixed signals from technical indicators, recent price performance, and the pronounced put option activity, a cautious approach is advisable. Investors holding long positions may consider protective strategies such as buying puts or tightening stop-loss levels to mitigate downside risk. Conversely, traders with a bearish outlook might view the current option activity as an opportunity to capitalise on potential corrections.

Fundamental investors should also weigh the company’s deteriorated Mojo Grade and low Market Cap Grade against sector trends and macroeconomic factors before making allocation decisions. The mid-cap status of Godrej Properties adds an element of volatility that may not suit all risk profiles.

Conclusion

Godrej Properties Ltd’s recent surge in put option trading ahead of the January expiry highlights a growing bearish sentiment and hedging activity despite short-term price gains. The ₹2,100 strike price has become a key level for market participants, reflecting uncertainty about the stock’s near-term direction. With a Strong Sell Mojo Grade and mixed technical signals, investors should remain vigilant and consider risk management strategies as the expiry date approaches.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →