Maruti Suzuki Sees Heavy Put Option Activity Amid Mixed Market Signals

Put Option Surge Highlights Investor Caution

On 3 February 2026, Maruti Suzuki witnessed a significant surge in put option activity, with 5,757 contracts changing hands at the 14,000 strike price expiring on 24 February 2026. The turnover for these contracts stood at ₹24.48 crores, reflecting substantial investor interest in downside protection or speculative bearish bets. Open interest at this strike remains elevated at 2,293 contracts, underscoring sustained positioning ahead of expiry.

This heightened put activity contrasts with the stock’s underlying value of ₹14,647, suggesting that traders are hedging against a potential pullback towards or below the 14,000 level. The strike price is approximately 4.7% below the current market price, indicating a moderately bearish stance among option traders.

Stock Performance and Technical Context

Maruti Suzuki’s share price has been on a modest upward trajectory, gaining 3.21% over the past two days, including a notable gap-up opening of 5.67% on 3 February. The stock touched an intraday high of ₹15,281, a 6.24% rise from the previous close. However, despite this short-term strength, the stock underperformed its sector, the Automobiles - Passenger Cars segment, which gained 2.22% on the day, while Maruti Suzuki lagged by 0.59% relative to the sector.

Technically, the stock trades above its 200-day moving average, a long-term bullish indicator, but remains below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling some near-term resistance and consolidation. This mixed technical picture may be prompting investors to seek downside protection via put options.

Sector and Market Dynamics

The broader market environment also plays a role in the cautious positioning. The Sensex posted a 2.83% gain on the day, outpacing both Maruti Suzuki and its sector. Meanwhile, delivery volumes for Maruti Suzuki have declined by 10.77% compared to the five-day average, indicating waning investor participation despite the price gains. Liquidity remains adequate, with the stock’s traded value supporting sizeable trades up to ₹25.71 crores comfortably.

Mojo Score and Rating Update

Maruti Suzuki currently holds a Mojo Score of 65.0, reflecting a moderate outlook with a Hold grade. This represents a downgrade from a previous Buy rating assigned on 12 January 2026, signalling a more cautious stance by analysts. The downgrade likely reflects the mixed technical signals and the increased put option activity, which may be interpreted as a warning sign of potential near-term volatility or correction.

The company remains a large-cap heavyweight with a market capitalisation of ₹4,61,165.70 crores, maintaining its status as a key player in the Indian automobile sector. Despite the Hold rating, the stock’s liquidity and market depth continue to make it a popular choice for institutional and retail investors alike.

Put Options as a Hedging and Sentiment Indicator

The surge in put option volume at the 14,000 strike price is a classic example of investors seeking to hedge existing long positions or speculate on a price decline. Given the stock’s recent gains and gap-up opening, the put buying could be interpreted as a protective measure against a potential pullback or increased volatility ahead of the February expiry.

Put options provide a form of insurance, allowing holders to limit downside risk while maintaining upside exposure. The substantial open interest and turnover at this strike suggest that many market participants are positioning for a scenario where the stock price may test lower support levels in the coming weeks.

Expiry Patterns and Market Implications

The 24 February 2026 expiry is attracting significant attention, with Maruti Suzuki’s put options leading the activity charts. This expiry falls just before the end of the financial year, a period often characterised by portfolio rebalancing and increased volatility. Investors may be using options to manage risk or express directional views amid uncertain macroeconomic or sector-specific developments.

Given the stock’s current price of ₹14,647 and the put strike at 14,000, the market is pricing in a roughly 4.7% downside buffer. This level may act as a psychological support, with option traders closely monitoring price action around this threshold in the coming weeks.

Comparative Sector Performance and Investor Sentiment

While the Automobiles - Passenger Cars sector has gained 2.22% recently, Maruti Suzuki’s relative underperformance and falling delivery volumes suggest a divergence in investor sentiment. This could be due to company-specific concerns, valuation considerations, or broader market rotation into other automobile stocks.

Investors should weigh these factors carefully, considering both the stock’s long-term fundamentals and the near-term technical and options market signals. The mixed indicators warrant a balanced approach, with hedging strategies such as put options playing a key role in risk management.

Investor Takeaway and Outlook

Maruti Suzuki’s active put option trading ahead of the February expiry highlights a cautious investor stance despite recent price gains. The combination of a Hold rating, mixed technical signals, and significant put buying suggests that market participants are preparing for potential volatility or a correction in the near term.

Investors holding Maruti Suzuki shares should consider protective strategies such as put options to hedge downside risk, especially given the stock’s proximity to key moving averages and the broader market environment. Meanwhile, those looking for entry points may want to monitor price action around the 14,000 strike level and expiry outcomes closely.

Overall, while Maruti Suzuki remains a large-cap stalwart in the automobile sector, the current options market activity and technical backdrop call for a measured approach, balancing upside potential with prudent risk management.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →