Rs 735 and Rs 745 Puts Draw Heavy Interest as HDFC Bank Ltd. Trades Near 52-Week Low

Put Options Event and Cash Market Context

On 24 Mar 2026, HDFC Bank Ltd. witnessed heavy put option trading ahead of the 30 Mar expiry. The Rs 745 strike saw 2,881 contracts traded with a turnover of ₹122.96 lakhs and open interest of 1,655 contracts. Similarly, the Rs 735 strike recorded 2,218 contracts traded, turnover of ₹61.36 lakhs, and open interest of 1,002 contracts. Other strikes such as Rs 720 and Rs 700 also showed notable activity, with 3,207 and 3,448 contracts traded respectively.

The underlying stock closed at Rs 751.30, having gained 1.04% on the day, but remains close to its 52-week low of Rs 741.05. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained downtrend. Delivery volumes have declined by 1.9% against the 5-day average, suggesting reduced investor participation despite the recent price uptick — does this divergence hint at cautious sentiment beneath the surface?

Strike Price Analysis: Moneyness and Distance

The Rs 745 put strike lies approximately 0.85% out-of-the-money (OTM) relative to the current price of Rs 751.30, while the Rs 735 strike is about 2.17% out-of-the-money. The Rs 720 and Rs 700 strikes are further out, at roughly 4.1% and 6.9% below the current price respectively. This distribution of put activity clustered around strikes just below the current price suggests a focus on downside protection rather than aggressive bearish bets.

Notably, the Rs 760 strike, which is in-the-money (ITM) by about 1.15%, also saw the highest number of contracts traded at 3,506, with a turnover of ₹273.24 lakhs and open interest of 3,149 contracts. This ITM put activity could indicate a combination of protective hedging and potential spread strategies, but given the stock's proximity to its lows, it may also reflect cautious positioning against further declines.

Interpreting the Put Activity: Hedging, Bearish Positioning, or Put Writing?

Put options inherently carry ambiguous signals. The concentration of activity in strikes slightly below the current price, combined with the stock's recent modest gains and proximity to a 52-week low, points towards a predominant hedging motive. Investors holding long positions may be buying OTM puts to protect against a pullback to support levels near Rs 735 or Rs 720 — is this a prudent shield against volatility or a sign of waning confidence?

Alternatively, the sizeable volume at the Rs 760 ITM strike could also reflect put writing, where sellers collect premium expecting the stock not to fall below that level by expiry. However, the relatively high open interest and turnover at lower strikes suggest fresh buying rather than predominantly put selling. The absence of a strong rally and the stock trading below all major moving averages further supports the interpretation that the put activity is more protective than bullish.

Open Interest and Contracts: Fresh Positioning or Adjustments?

The ratio of contracts traded to open interest varies across strikes. For the Rs 745 strike, 2,881 contracts traded against an open interest of 1,655, yielding a ratio of approximately 1.74:1. The Rs 735 strike shows a similar pattern with 2,218 contracts traded and 1,002 open interest (2.21:1). These ratios indicate a significant amount of fresh activity rather than mere position rollovers or adjustments.

At the Rs 760 ITM strike, the ratio is about 1.11:1 (3,506 contracts traded vs. 3,149 open interest), suggesting a mix of fresh trades and existing positions. The elevated open interest at this strike points to a well-established level of interest, possibly from institutional players managing risk or engaging in spread strategies.

Cash Market Context: Technicals and Delivery Volumes

HDFC Bank Ltd. remains below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a persistent downtrend. The stock’s recent 1.04% gain on 24 Mar 2026 partially reverses a four-day losing streak but has not yet broken technical resistance.

Delivery volumes have declined by 1.9% compared to the 5-day average, indicating that the recent price moves are not strongly supported by investor participation. This lack of conviction in the rally may explain why put buyers are active: the rally is vulnerable to a pullback, and protective puts offer a hedge against such a scenario.

Conclusion: Protective Hedging Dominates Amid Technical Weakness

The put option activity in HDFC Bank Ltd. on 24 Mar 2026 is characterised by concentrated volumes at strikes just below the current price and a notable presence at an ITM strike. This pattern, combined with the stock’s position near its 52-week low and below all major moving averages, suggests that the majority of put buying is likely protective hedging rather than outright bearish speculation.

Put writing at the ITM strike may also be present, reflecting some bullish premium collection, but the overall data points to cautious positioning amid technical weakness. The declining delivery volumes and subdued investor participation reinforce the notion that the recent price gains lack strong conviction, prompting investors to seek downside protection.

With puts active and calls active on the same stock, buy, sell, or hold HDFC Bank Ltd.? The full analysis cuts through the options noise.

Key Data at a Glance

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