Maruti Suzuki Sees Heavy Put Option Activity Amid Bearish Sentiment

Surge in Put Option Trading

Data from the derivatives market reveals that Maruti Suzuki’s put options with a strike price of ₹15,000 expiring on 24 February 2026 have witnessed exceptionally high trading volumes. A total of 10,478 contracts were traded, generating a turnover of approximately ₹7.97 crores. The open interest stands at 2,902 contracts, indicating sustained interest in downside protection or speculative bearish bets.

The underlying stock price at the time of analysis was ₹15,054, placing the ₹15,000 strike put options slightly in-the-money. This proximity to the current market price suggests that traders are positioning for a potential near-term decline or are actively hedging existing long positions against downside risk.

Price Performance and Technical Indicators

Maruti Suzuki’s stock has been on a downward trajectory, losing 2.49% over the last three consecutive trading sessions. On 16 February 2026, the stock declined by 1.49%, underperforming the automobile sector by 0.27%. Despite trading above its 200-day moving average, the stock 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 on 13 February falling by 31.63% compared to the five-day average. This decline in delivery volume suggests reduced conviction among buyers, further corroborating the bearish sentiment reflected in the options market.

Market Capitalisation and Mojo Score

Maruti Suzuki India Ltd is a large-cap stock with a market capitalisation of ₹4,72,515.63 crores. The company’s Mojo Score currently stands at 62.0, categorised as a ‘Hold’ rating. This represents a downgrade from a previous ‘Buy’ rating issued on 12 January 2026, reflecting a more cautious outlook by analysts amid recent price weakness and sector headwinds.

Implications of Heavy Put Option Activity

The surge in put option volumes at the ₹15,000 strike price suggests that market participants are either hedging against further downside or speculating on a decline in Maruti Suzuki’s share price. Put options provide a form of insurance for long investors, allowing them to limit losses if the stock falls below the strike price by expiry.

Given the stock’s recent underperformance relative to its sector and the broader Sensex, which rose by 0.43% on the same day, the bearish positioning in options is notable. The automobile sector itself declined by 1.26%, indicating sector-wide pressures that may be weighing on Maruti Suzuki’s outlook.

Expiry Patterns and Investor Behaviour

The 24 February 2026 expiry is attracting significant open interest, which often leads to increased volatility as traders adjust positions ahead of the deadline. The concentration of put options at the ₹15,000 strike price, close to the current market level, may result in price support or resistance zones forming around this level in the coming days.

Investors should monitor changes in open interest and volume in both puts and calls to gauge shifts in market sentiment. A sustained increase in put open interest accompanied by declining stock prices would reinforce the bearish narrative, while a reversal could signal a potential recovery.

Liquidity and Trading Considerations

Maruti Suzuki’s stock remains sufficiently liquid for sizeable trades, with a five-day average traded value supporting trade sizes up to ₹8.38 crores based on 2% of average volume. This liquidity facilitates active participation by institutional and retail investors alike, enabling efficient price discovery and risk management through derivatives.

Outlook for Maruti Suzuki

While Maruti Suzuki remains a dominant player in the Indian automobile industry, the recent downgrade in its Mojo Grade from ‘Buy’ to ‘Hold’ reflects growing uncertainty. Investors should weigh the risks posed by sectoral challenges, including supply chain disruptions and fluctuating demand, against the company’s strong market position and large-cap status.

The heavy put option activity signals that market participants are bracing for potential near-term volatility. Those holding long positions may consider protective strategies, while traders looking for opportunities might explore the evolving technical setup around key moving averages and strike prices.

Overall, the stock’s current technical and derivatives market signals suggest a cautious stance, with a watchful eye on upcoming earnings, sector developments, and broader market trends.

Comparative Market Context

In comparison to the broader market, Maruti Suzuki’s 1.37% one-day decline on 16 February contrasts with the Sensex’s modest 0.43% gain, underscoring stock-specific pressures. The automobile sector’s 1.26% fall further contextualises the challenges faced by the company, highlighting the importance of sectoral dynamics in shaping investor sentiment.

Investors should also consider the stock’s positioning relative to its moving averages. Trading above the 200-day moving average typically indicates long-term strength, but the current weakness below shorter-term averages suggests a potential correction or consolidation phase.

Conclusion

Maruti Suzuki India Ltd’s prominence in put option trading ahead of the 24 February expiry reflects heightened bearish sentiment and hedging activity. The stock’s recent price underperformance, declining investor participation, and technical indicators point to a cautious outlook. Market participants should closely monitor derivatives activity and price movements to navigate the evolving risk landscape effectively.

Given the company’s large-cap stature and significant market presence, developments in Maruti Suzuki’s stock will continue to attract attention from both institutional and retail investors seeking to balance growth prospects with risk management.

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