Maruti Suzuki Sees Heavy Put Option Activity Amid Bearish Sentiment

Put Option Surge Highlights Investor Caution

Data from the derivatives market reveals that Maruti Suzuki’s put options with a strike price of ₹15,600 have witnessed a remarkable 7,252 contracts traded, generating a turnover of ₹27.09 crores. The open interest currently stands at 886 contracts, indicating sustained interest in downside protection. This level of activity is significant given the underlying stock price of ₹15,561 as of 23 January 2026, placing the strike price just slightly out-of-the-money.

The concentration of put option trades at this strike price and expiry date suggests that market participants are positioning for a potential decline or are actively hedging existing long exposures. The expiry on 27 January 2026 is imminent, which often leads to heightened volatility and strategic option plays as traders adjust their portfolios ahead of the deadline.

Recent Price Performance and Technical Context

Maruti Suzuki’s stock has been under pressure, falling by 1.35% on the day and underperforming its sector by 0.48%. Over the past four consecutive trading sessions, the share price has declined by 3.7%, reflecting a weakening trend. While the stock remains above its 200-day moving average, it is trading below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term bearish momentum.

Investor participation has also waned, with delivery volumes dropping by 15.89% compared to the five-day average, suggesting reduced conviction among buyers. Despite this, liquidity remains adequate, with a traded value sufficient to support sizeable transactions up to ₹13.66 crores, ensuring that option and stock trades can be executed without significant market impact.

Sector and Market Comparison

Maruti Suzuki operates within the automobile sector, a segment that has experienced mixed performance amid global supply chain challenges and fluctuating consumer demand. The stock’s 1-day return of -1.33% contrasts with the sector’s decline of -0.67% and the broader Sensex’s modest fall of -0.28%, underscoring relative weakness in the company’s shares.

With a market capitalisation of ₹4,96,976 crores, Maruti Suzuki remains a heavyweight in the large-cap space. However, its current Mojo Score of 65.0 and a Mojo Grade downgraded from Buy to Hold on 12 January 2026 reflect a more cautious outlook from analysts. The downgrade signals tempered expectations amid recent volatility and the stock’s inability to sustain upward momentum.

Implications of Put Option Activity

The heavy put option volume at the ₹15,600 strike price suggests that investors are either hedging against further downside or speculating on a near-term correction. Put options provide a form of insurance, allowing holders to sell shares at the strike price, thus limiting losses if the stock declines. The open interest of 886 contracts indicates that this is not merely speculative day trading but a more sustained positioning.

Such activity often precedes increased volatility, especially as the expiry date approaches. Traders and institutional investors may be adjusting their portfolios in response to recent price weakness and broader market uncertainties, including potential shifts in interest rates, raw material costs, and consumer sentiment impacting automobile sales.

Outlook and Strategic Considerations

Given the current technical and derivatives market signals, investors should approach Maruti Suzuki with caution. The Hold rating and lowered Mojo Grade reflect the need to monitor upcoming earnings, sector developments, and macroeconomic factors closely. While the stock remains fundamentally strong as a market leader, the recent bearish positioning in options markets cannot be ignored.

For traders, the put option activity offers opportunities to hedge existing long positions or to speculate on a potential pullback. For long-term investors, it may be prudent to await clearer signs of trend reversal or confirmation of sustained demand recovery before increasing exposure.

Conclusion: Navigating Near-Term Risks

Maruti Suzuki’s elevated put option activity ahead of the 27 January expiry highlights a cautious market stance amid recent price declines and technical weakness. While the company’s large-cap status and market leadership provide a solid foundation, the current environment calls for vigilance as investors weigh downside risks against potential recovery catalysts.

Monitoring option market trends alongside fundamental developments will be key for market participants seeking to navigate the evolving landscape. The interplay between technical signals and derivatives positioning offers valuable insights into investor sentiment and potential price trajectories in the near term.

Unlock special upgrade rates for a limited period. Start Saving Now →