Maruti Suzuki Sees Heavy Put Option Activity Amid Bearish Sentiment

Intense Put Option Trading Highlights Bearish Sentiment

Maruti Suzuki, a leading player in the Indian automobile sector, has seen a remarkable spike in put option volumes, particularly for contracts expiring on 24 February 2026. The most actively traded put options include strikes at ₹14,000, ₹14,500, ₹15,000, ₹14,400, and ₹13,000, with the underlying stock price hovering around ₹14,455 as of the latest data.

The ₹14,000 strike put option leads with 8,904 contracts traded, generating a turnover of approximately ₹890.4 lakhs and an open interest of 2,910 contracts. Close behind, the ₹14,500 strike recorded 6,846 contracts traded with a turnover of ₹1,289.44 lakhs and an open interest of 2,479. The ₹15,000 strike also saw substantial activity with 1,691 contracts traded and turnover of ₹558.56 lakhs.

Lower strike prices such as ₹14,400 and ₹13,000 have also attracted considerable interest, with 2,968 and 2,128 contracts traded respectively. This broad distribution of put option activity across strikes suggests a layered approach by investors to hedge or speculate on potential downside risks.

Stock Performance and Market Context

Maruti Suzuki’s stock has been under pressure, declining by 3.04% on the day and underperforming its sector by 0.57%. The stock has experienced a consecutive seven-day fall, resulting in a cumulative loss of 10.32% over this period. Intraday lows touched ₹14,353, marking a 3.52% drop from previous levels. The weighted average price indicates that most volume traded near the day’s low, reinforcing bearish momentum.

Despite trading above its 200-day moving average, Maruti Suzuki remains below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term weakness. The broader Automobiles - Passenger Cars sector has also declined by 2.08%, reflecting sector-wide challenges.

Investor participation has notably increased, with delivery volumes surging to 6.74 lakh shares on 28 January 2026, a 206.39% rise compared to the five-day average. This heightened activity underscores growing market interest amid the stock’s recent volatility.

Implications of Put Option Activity

The surge in put option volumes at strikes near and below the current market price indicates a cautious or bearish stance among traders and institutional investors. Put options serve as a hedge against potential declines or as speculative bets on falling prices. The concentration of open interest at ₹14,000 and ₹14,500 strikes, both close to the current stock price, suggests that market participants are bracing for further downside or volatility in the near term.

Moreover, the substantial turnover in these contracts, amounting to several crores, highlights the liquidity and active interest in Maruti Suzuki’s options market. This activity often precedes significant price movements, as option traders adjust their positions in response to evolving market conditions.

Mojo Score and Analyst Ratings

Maruti Suzuki currently holds a Mojo Score of 62.0, categorised as a Hold, reflecting a cautious outlook. This represents a downgrade from a previous Buy rating assigned on 12 January 2026. The downgrade aligns with the recent price weakness and increased bearish sentiment observed in the options market.

The company’s market capitalisation stands at a robust ₹4,53,494.27 crores, placing it firmly in the large-cap category. Despite the recent setbacks, Maruti Suzuki remains a key player in the automobile sector, though investors are advised to monitor technical and fundamental developments closely.

Sector and Market Comparison

Comparing Maruti Suzuki’s performance with the broader market, the Sensex declined by 0.48% on the same day, while the automobile sector’s passenger car segment fell by 2.08%. Maruti’s sharper decline of 3.04% indicates relative underperformance, which may be contributing to the increased demand for downside protection via put options.

Liquidity metrics suggest that the stock is sufficiently liquid to accommodate sizeable trades, with a 2% threshold of the five-day average traded value equating to approximately ₹20.36 crores. This liquidity supports active options trading and facilitates efficient price discovery.

Outlook and Investor Considerations

Given the sustained decline in Maruti Suzuki’s share price and the pronounced put option activity, investors should exercise caution. The current technical setup, combined with the bearish positioning in the options market, suggests that downside risks remain elevated in the near term.

However, the stock’s large-cap status and dominant market position in the automobile industry provide a degree of fundamental support. Investors may consider monitoring upcoming earnings, sectoral trends, and broader economic indicators before making decisive moves.

For traders, the active options market offers opportunities to hedge existing positions or speculate on volatility. The concentration of open interest near current price levels indicates that option premiums may remain elevated, reflecting market uncertainty.

Expiry Patterns and Strategic Implications

The expiry date of 24 February 2026 is a focal point for option traders, with volumes and open interest peaking as expiry approaches. This pattern is typical as market participants adjust their portfolios to manage risk or capitalise on anticipated price moves.

Investors should be aware that option expiry can lead to increased volatility, especially when open interest is concentrated at specific strike prices. The clustering of put options around ₹14,000 to ₹15,000 suggests these levels may act as key support or resistance zones in the coming weeks.

Strategically, traders might look to combine option positions with underlying stock holdings to optimise risk-reward profiles. For example, protective puts can limit downside while allowing participation in potential rebounds.

Conclusion

Maruti Suzuki India Ltd’s recent surge in put option activity underscores a growing bearish sentiment and heightened hedging demand among investors. The stock’s underperformance relative to its sector and the broader market, coupled with technical weakness, has prompted market participants to seek downside protection ahead of the February expiry.

While the company’s fundamentals remain solid, the current market dynamics warrant a cautious approach. Investors and traders alike should closely monitor price action, option market signals, and sector developments to navigate the evolving landscape effectively.

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