Put Option Activity Highlights
On 27 February 2026, HDFC Bank's put options at the ₹900 strike price for the 30 March 2026 expiry emerged as the most actively traded contracts in the market. A total of 1,879 contracts changed hands, generating a turnover of approximately ₹185.5 lakhs. Open interest at this strike stands at 6,183 contracts, indicating sustained investor interest in downside protection or speculative bearish bets.
The underlying stock price closed at ₹895.05, just below the ₹900 strike, suggesting that traders are positioning for a potential decline or increased volatility in the near term. The concentration of put option activity near the current market price often reflects hedging by long holders or speculative plays anticipating further weakness.
Price and Technical Context
HDFC Bank has been under pressure recently, with the stock declining for four consecutive sessions, resulting in a cumulative loss of 3.19%. The stock traded within a narrow range of ₹6.55 on the day, reflecting subdued volatility but persistent selling interest. Notably, the share price is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish technical setup.
Investor participation has risen, as evidenced by a delivery volume of 2.49 crore shares on 26 February, marking a 58.7% increase over the five-day average delivery volume. This heightened activity suggests that market participants are actively adjusting their positions amid the prevailing downtrend.
Liquidity remains robust, with the stock capable of supporting trade sizes up to ₹55.96 crore based on 2% of the five-day average traded value, ensuring that option and equity trades can be executed efficiently without significant market impact.
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Mojo Score and Market Sentiment
HDFC Bank currently holds a Mojo Score of 48.0, categorised as a Sell rating by MarketsMOJO, reflecting a downgrade from its previous Hold status on 9 February 2026. The downgrade aligns with the deteriorating technical indicators and increased bearish positioning observed in the options market.
The bank’s market capitalisation stands at a substantial ₹13,83,280 crore, placing it firmly in the large-cap segment. Despite its size and sector leadership, the stock’s recent underperformance relative to the private sector banking industry and the broader Sensex index highlights investor caution.
Sector and Benchmark Comparison
On the day of analysis, HDFC Bank’s share price declined by 0.47%, slightly outperforming the private sector bank sector’s fall of 0.59% and the Sensex’s 0.54% drop. This relative resilience, however, has not prevented the accumulation of bearish bets through put options, signalling that market participants may be bracing for further downside or volatility.
The stock’s consistent trading below all key moving averages contrasts with the sector’s mixed technical picture, suggesting that HDFC Bank is currently a laggard within its peer group.
Expiry Patterns and Investor Positioning
The expiry date of 30 March 2026 for the most active put options is significant, as it falls at the end of the current financial quarter. This timing often sees increased hedging activity as institutional investors adjust portfolios ahead of quarterly results and macroeconomic updates.
The concentration of open interest at the ₹900 strike price, just above the current market price, indicates that investors are either protecting long equity positions or speculating on a decline below this level. The sizeable open interest of 6,183 contracts suggests that this strike price is a key psychological and technical level for market participants.
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Implications for Investors
The surge in put option activity at a strike price near the current market level, combined with the stock’s technical weakness and downgrade in Mojo Grade, suggests that investors should exercise caution. The bearish positioning may reflect concerns over near-term earnings, macroeconomic headwinds, or sector-specific challenges.
Long-term investors might consider this an opportunity to reassess their exposure, especially given the stock’s underperformance relative to the sector and broader market. Meanwhile, traders and hedgers can utilise the active options market to manage risk or capitalise on anticipated volatility.
It is also important to monitor upcoming quarterly results and macroeconomic developments, which could either alleviate or exacerbate the current bearish sentiment.
Conclusion
HDFC Bank’s recent put option activity underscores a growing bearish sentiment among market participants, with significant open interest and turnover concentrated at the ₹900 strike price for the 30 March 2026 expiry. The stock’s technical weakness, downgrade to a Sell rating, and relative underperformance within the private sector banking space reinforce the cautious outlook.
Investors should closely watch price action and option market dynamics in the coming weeks to gauge whether this bearish positioning translates into further downside or if a reversal is imminent.
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