Maruti Suzuki Sees Heavy Put Option Activity Amid Bearish Sentiment

Put Option Activity Highlights

On 27 January 2026 expiry, Maruti Suzuki’s put options dominated the derivatives market with several strike prices attracting substantial volumes. The most actively traded put contract was at the ₹15,100 strike, with 3,482 contracts exchanged, generating a turnover of ₹112.19 lakhs. This was closely followed by the ₹14,700 strike with 2,702 contracts and ₹14,800 strike with 2,625 contracts traded. Other notable strikes included ₹15,200 (2,162 contracts) and ₹14,900 (2,359 contracts).

Open interest figures further underscore the bearish sentiment, with the ₹14,800 strike holding the highest open interest at 496 contracts, indicating sustained investor interest in downside protection at this level. The underlying stock price stood at ₹15,239 on the day, hovering just above these key strike prices, suggesting that traders are positioning for a potential near-term decline or increased volatility.

Market Context and Stock Performance

Maruti Suzuki’s stock has been under pressure, falling by 6.57% over the past five trading sessions. On 27 January, it declined by 1.75%, slightly outperforming the broader Automobiles - Passenger Cars sector, which dropped 2.08%. The stock touched an intraday low of ₹15,013, down 2.95% from the previous close. Despite trading above its 200-day moving average, the share price remains below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term weakness.

Investor participation has also waned, with delivery volumes falling by 19.19% compared to the five-day average, indicating reduced conviction among buyers. Liquidity remains adequate, supporting trade sizes up to ₹11.29 crores based on 2% of the five-day average traded value.

Investor Sentiment and Rating Changes

Maruti Suzuki’s Mojo Score currently stands at 65.0, reflecting a Hold rating, a downgrade from a Buy rating issued on 12 January 2026. This adjustment reflects a more cautious stance amid recent price weakness and sector headwinds. The company’s market capitalisation remains robust at ₹4,78,017.67 crores, classifying it as a large-cap stock with a Market Cap Grade of 1, indicating high liquidity and institutional interest.

The downgrade aligns with the increased put option activity, which often signals hedging by longs or outright bearish bets by speculators. The concentration of put contracts around the ₹14,700 to ₹15,200 strikes suggests that investors are bracing for a potential correction or volatility spike in the near term.

Expiry Patterns and Implications

The expiry date of 27 January 2026 is critical, as the clustering of put options near the current stock price could lead to heightened price sensitivity around these levels. Traders holding these puts may exercise or roll over positions depending on the stock’s movement, potentially amplifying volatility. The relatively high open interest at the ₹14,800 strike, combined with significant turnover at the ₹15,100 strike, indicates that these levels are focal points for market participants.

Such activity often precedes directional moves, with put-heavy positioning signalling either protective hedging by long holders or speculative bearish bets. Given the stock’s recent underperformance and technical indicators, the latter appears plausible, though the large-cap status and strong fundamentals may limit downside risk.

Sector and Broader Market Comparison

While Maruti Suzuki has underperformed its sector peers, the broader Sensex index posted a modest gain of 0.37% on the same day. The automobile sector’s passenger car segment declined by 2.08%, reflecting broader concerns over demand and supply chain disruptions. Maruti’s relative outperformance by 0.33% against its sector suggests some resilience, but the persistent five-day decline and falling delivery volumes highlight investor caution.

Technically, the stock’s position above the 200-day moving average provides a long-term support level, but the failure to sustain above shorter-term averages signals potential near-term weakness. This technical backdrop, combined with the heavy put option interest, suggests that investors are hedging against further downside or preparing for a correction.

Outlook and Investor Considerations

Investors should closely monitor the stock’s price action around the key strike prices of ₹14,700 to ₹15,200 as the expiry approaches. The heavy put option volumes and open interest indicate that these levels will be pivotal in determining short-term direction. While the downgrade to Hold and recent price weakness warrant caution, Maruti Suzuki’s large-cap status, strong market capitalisation, and underlying fundamentals provide a degree of stability.

For those considering hedging strategies or speculative plays, the current options market offers insight into prevailing sentiment and potential risk zones. The combination of technical signals and derivatives data suggests a cautious approach, with attention to sector trends and broader market conditions essential for informed decision-making.

Summary

Maruti Suzuki India Ltd’s options market activity reveals a clear tilt towards bearish positioning ahead of the 27 January expiry. Heavy put option volumes at strikes just below and near the current stock price, combined with a recent downgrade and five-day price decline, underscore investor caution. While the stock remains a large-cap heavyweight with solid fundamentals, the derivatives data and technical indicators suggest a watchful stance is prudent in the near term.

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