Inox Wind Ltd Sees Heavy Put Option Activity Amid Bearish Market Sentiment

Intense Put Option Activity Highlights Bearish Positioning

On 16 February 2026, Inox Wind Ltd (NSE: INOXWIND) emerged as the most active stock in put options trading, with the 100 strike price put contracts dominating volumes. A total of 5,696 contracts were traded, generating a turnover of ₹720.86 lakhs. The open interest for these puts stands at 1,246 contracts, reflecting sustained interest from market participants betting on or hedging against further downside.

The underlying stock price closed near ₹99.07, just below the 100 strike, indicating that these puts are positioned close to the money, which often suggests traders expect or are protecting against a decline below this level. The expiry date of 24 February 2026 is imminent, adding urgency to these bearish bets.

Price Action and Volatility Confirm Downside Pressure

Inox Wind Ltd’s share price has been under considerable pressure, hitting a new 52-week low of ₹97.83 on the day. The stock has underperformed its sector by -6.92% and the broader Sensex by a notable margin, with a one-day return of -6.98% compared to the sector’s -0.93% and Sensex’s modest 0.22% gain.

Over the past four consecutive trading sessions, the stock has declined by -11.86%, underscoring a clear downtrend. Intraday volatility has been elevated at 5.62%, calculated from the weighted average price, reflecting heightened uncertainty and active trading near the lows. The weighted average price itself skewed towards the day’s low, indicating selling pressure dominated the session.

Technical indicators reinforce this bearish momentum, with Inox Wind trading below all major moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained downtrend and weak investor confidence.

Rising Investor Participation Amid Declining Prices

Interestingly, delivery volumes have risen slightly, with 24.45 lakh shares delivered on 13 February, a 1.19% increase over the five-day average delivery volume. This suggests that despite the price decline, investor participation is increasing, possibly due to short sellers or hedgers entering the market.

Liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹1.72 crore based on 2% of the five-day average traded value. This liquidity facilitates active options and equity trading, enabling market participants to implement complex hedging or speculative strategies.

Mojo Score Downgrade Reflects Weakening Fundamentals

Inox Wind’s recent downgrade from a Hold to a Sell rating by MarketsMOJO on 9 October 2025 aligns with the deteriorating price action and bearish options activity. The company’s Mojo Score currently stands at 36.0, indicating weak fundamentals and limited upside potential. The Market Cap Grade is 3, categorising it as a small-cap stock with moderate liquidity and market presence.

This downgrade reflects concerns over the company’s financial health, sector challenges, and technical weakness, which have likely contributed to the surge in put option interest as investors seek downside protection or speculative opportunities.

Expiry Patterns and Strike Price Concentration

The concentration of put option volume at the 100 strike price for the 24 February expiry is particularly telling. This strike is just above the current market price, suggesting that traders are positioning for a potential drop below this level or are hedging existing long positions against further losses.

Such near-the-money put activity often precedes significant price moves, as it reflects a consensus view of increased downside risk in the short term. The open interest of 1,246 contracts further confirms that this is not merely speculative day trading but a more sustained bearish stance.

Sector and Market Context

The Heavy Electrical Equipment sector has shown mixed performance recently, but Inox Wind’s underperformance by nearly 7% relative to its peers highlights company-specific challenges. The broader market’s modest gains on the day contrast sharply with Inox Wind’s decline, underscoring the stock’s vulnerability.

Investors should note that the stock’s technical weakness, combined with the surge in bearish options activity, may signal further downside risk or at least elevated volatility in the near term. This environment favours cautious positioning and close monitoring of price and volume developments.

Investor Implications and Outlook

For investors currently holding Inox Wind Ltd shares, the pronounced bearish sentiment reflected in the options market and the technical deterioration suggest caution. The stock’s failure to hold key moving averages and the fresh 52-week low point to a challenging near-term outlook.

Those seeking to hedge downside risk may find the active put options at the 100 strike price a viable tool, while speculative traders might consider the elevated volatility and open interest as opportunities for directional bets.

However, given the company’s Sell rating and weak Mojo Score, investors should carefully evaluate their exposure and consider alternative investments within the Heavy Electrical Equipment sector or broader market that offer stronger fundamentals and technical setups.

Summary

Inox Wind Ltd’s recent market activity reveals a clear shift towards bearish positioning, with heavy put option volumes concentrated at the 100 strike price ahead of the 24 February expiry. The stock’s sharp decline, new 52-week low, and technical weakness reinforce this negative sentiment. Investors should remain vigilant and consider hedging or reallocating capital in light of these developments.

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