Kalyan Jewellers Sees Heavy Put Option Activity Ahead of February Expiry

Put Option Activity Highlights

The most active put options for Kalyan Jewellers India Ltd (stock code: 1003479) are concentrated at the ₹420 strike price, with 1,825 contracts traded recently. This activity generated a turnover of approximately ₹225.37 lakhs, reflecting significant investor interest in downside protection or speculative bearish bets. Open interest at this strike stands at 1,443 contracts, indicating sustained positions held by traders as the 24 February expiry approaches.

The underlying stock price currently hovers around ₹438.25, suggesting that the ₹420 strike puts are slightly out-of-the-money but close enough to be relevant for hedging or directional plays. The elevated put option volume relative to calls points to a cautious or defensive stance among market participants, possibly anticipating near-term volatility or a correction.

Stock Performance and Technical Context

On the trading day of 10 February 2026, Kalyan Jewellers underperformed its sector by 0.43%, slipping 0.72% lower. This decline followed two consecutive days of gains, signalling a potential trend reversal. The stock’s price remains above its 5-day and 20-day moving averages but below the longer-term 50-day, 100-day, and 200-day averages, reflecting a mixed technical picture with short-term strength offset by longer-term resistance.

Investor participation has notably increased, with delivery volumes on 9 February reaching 87.38 lakh shares — a staggering 429.93% rise compared to the five-day average. This surge in delivery volume suggests heightened conviction among buyers and sellers alike, possibly contributing to the increased options activity as traders seek to hedge or capitalise on expected price moves.

Market Capitalisation and Sector Positioning

Kalyan Jewellers is classified as a mid-cap company with a market capitalisation of ₹45,230.62 crores, operating within the Gems, Jewellery and Watches industry. The sector has shown resilience but remains sensitive to consumer sentiment and discretionary spending trends, factors that could influence near-term stock performance and options market dynamics.

Mojo Score and Analyst Ratings

Kalyan Jewellers currently holds a Mojo Score of 50.0, categorised as a 'Hold' rating, an upgrade from a previous 'Sell' grade issued on 19 January 2026. This shift reflects a more neutral stance from analysts, balancing the company’s stable fundamentals against recent price volatility and sector headwinds. The market cap grade is 2, indicating mid-cap status with moderate liquidity and institutional interest.

Despite the recent downgrade in short-term price momentum, the stock’s liquidity remains robust, with an average traded value sufficient to support trade sizes up to ₹16.68 crores based on 2% of the five-day average. This liquidity facilitates active options trading and allows investors to implement complex hedging or speculative strategies efficiently.

Investor Sentiment and Hedging Implications

The pronounced put option activity at the ₹420 strike price suggests that investors are either hedging existing long positions or positioning for a potential downside move. Given the stock’s current price near ₹438, these puts offer a buffer against declines exceeding roughly 4%, a level that may be psychologically significant for traders.

Such bearish positioning is not uncommon ahead of key expiry dates, as market participants seek to manage risk amid uncertain macroeconomic conditions and sector-specific challenges. The gems and jewellery sector often experiences volatility linked to consumer demand fluctuations, gold price movements, and regulatory changes, all of which can influence investor behaviour.

Expiry Patterns and Future Outlook

The 24 February 2026 expiry is attracting significant open interest in put options, which may foreshadow increased volatility or a directional shift in the stock price. Traders often use options expiry dates as focal points for repositioning, and the concentration of activity at the ₹420 strike suggests a key support level to watch in the coming weeks.

While the stock’s short-term technical indicators show some resilience, the longer-term moving averages remain overhead resistance, implying that any sustained rally will require stronger buying momentum. Conversely, a breach below the ₹420 level could trigger further downside, validating the bearish sentiment embedded in the options market.

Conclusion

Kalyan Jewellers India Ltd’s recent surge in put option trading highlights a cautious mood among investors, with significant hedging and speculative activity centred on the ₹420 strike price ahead of the February expiry. The stock’s mixed technical signals, combined with rising delivery volumes and sector sensitivities, suggest that market participants are preparing for potential near-term volatility.

Investors should monitor open interest trends and price action closely, as these will provide valuable clues about the evolving sentiment and risk appetite. While the company’s fundamentals remain stable enough to warrant a 'Hold' rating, the options market activity underscores the importance of prudent risk management in the current environment.

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