Put Option Activity Highlights
Data from the options market reveals that put contracts with strike prices of ₹900 and ₹910 have emerged as the most actively traded for HDFC Bank. Specifically, the ₹900 strike put options saw 5,024 contracts traded, generating a turnover of ₹392.37 lakhs and an open interest of 5,494 contracts. Meanwhile, the ₹910 strike put options recorded 4,615 contracts traded, with a turnover of ₹451.81 lakhs and an open interest of 2,410 contracts. These figures underscore a significant build-up of bearish bets or hedging strategies ahead of the March expiry.
The underlying stock price currently stands at ₹900, placing these strike prices at-the-money or slightly out-of-the-money, which typically attracts heightened option activity as traders position for potential downside or protection against further declines.
Price Performance and Technical Context
HDFC Bank’s stock has underperformed its private sector banking peers, falling by 0.84% on the latest trading day compared to a sector decline of 0.36% and a Sensex drop of 0.18%. Over the past three trading sessions, the stock has lost 2.56%, reflecting sustained selling pressure. Technical indicators reinforce this bearish sentiment, with the share price trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a downtrend across multiple timeframes.
Investor participation has also intensified, as evidenced by a delivery volume of 2.09 crore shares on 25 February 2026, marking a 60.37% increase over the five-day average delivery volume. This heightened liquidity supports the active options market and suggests that market participants are increasingly positioning themselves for potential volatility or downside risk in HDFC Bank’s shares.
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Mojo Score and Analyst Ratings
HDFC Bank currently holds a Mojo Score of 48.0, placing it in the ‘Sell’ grade category as of 9 February 2026, a downgrade from its previous ‘Hold’ rating. The bank’s market capitalisation stands at a robust ₹13,97,669 crore, categorising it as a large-cap stock. Despite its size and sector leadership, the downgrade reflects concerns over valuation, momentum, and near-term earnings prospects.
Implications of Put Option Activity
The concentration of put option trades at strike prices close to the current market value suggests that investors are either hedging existing long positions or speculating on a further decline in HDFC Bank’s share price. Open interest data indicates that the ₹900 strike put options have a significantly higher outstanding position, which may act as a support level if sellers look to unwind positions near expiry.
Such bearish positioning is not uncommon in volatile market phases, especially when broader macroeconomic factors or sector-specific headwinds weigh on banking stocks. The private sector banking segment has faced challenges including margin pressures, asset quality concerns, and regulatory scrutiny, which may be contributing to cautious investor sentiment.
Sector and Market Context
While HDFC Bank has underperformed its sector peers, the private sector banking industry remains a critical engine of growth for the Indian economy. Investors will be closely monitoring upcoming quarterly results, credit growth trends, and policy developments that could influence the bank’s trajectory. The Sensex’s modest decline of 0.18% on the day indicates a broadly cautious market environment, with investors favouring defensive positioning.
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Investor Takeaways
For investors, the current surge in put option activity at near-the-money strikes signals a cautious outlook on HDFC Bank’s short-term prospects. Those 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 bias might view the elevated open interest and turnover in puts as an opportunity to capitalise on potential weakness ahead of the March expiry.
It is also important to monitor how the stock reacts as expiry approaches, particularly if the price gravitates towards the ₹900 strike level where significant open interest exists. A breach below this level could trigger further downside, while a rebound might see put sellers closing positions, reducing volatility.
Conclusion
HDFC Bank’s recent options market activity reflects a growing bearish sentiment amid a challenging technical and fundamental backdrop. The concentration of put option trades near current market prices, combined with a downgrade in Mojo Grade and underperformance relative to sector peers, suggests investors are bracing for potential near-term volatility. Market participants should closely watch price action and expiry dynamics to gauge the evolving risk-reward profile of this large-cap banking stock.
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