Oberoi Realty Sees Heavy Put Option Activity Amid Bearish Market Sentiment

Heavy Put Option Volumes at Critical Strikes

Data from the derivatives market reveals that Oberoi Realty’s put options with strike prices of ₹1,600 and ₹1,560 have emerged as the most actively traded contracts for the upcoming expiry on 27 January 2026. Specifically, the ₹1,560 strike put saw 3,829 contracts traded, generating a turnover of ₹308.5 lakhs, while the ₹1,600 strike put recorded 3,082 contracts with a turnover of ₹471.4 lakhs. Open interest for these strikes stands at 568 and 500 contracts respectively, indicating sustained investor interest in downside protection or speculative bearish bets.

The underlying stock price currently hovers around ₹1,571.9, placing these strike prices just at or slightly above the market level. This concentration of put activity near the money suggests that traders are positioning for potential further declines or are actively hedging existing long exposures against downside risk.

Price Action and Technical Weakness

Oberoi Realty’s recent price performance corroborates the cautious sentiment evident in options trading. The stock has underperformed its sector by 3.19% today and has declined by 5.06% over the last two trading sessions. It opened sharply lower by 2.35% and touched an intraday low of ₹1,558.9, marking a 5.8% drop from previous levels. Notably, the weighted average price of traded shares has been closer to the day’s low, indicating selling pressure throughout the session.

Technically, Oberoi Realty is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. This technical weakness is likely contributing to the increased demand for protective put options as investors seek to mitigate further losses.

Declining Investor Participation and Liquidity Considerations

Investor participation appears to be waning, with delivery volumes falling by 13.63% compared to the five-day average, registering 1.89 lakh shares on 19 January. Despite this, liquidity remains adequate, with the stock’s traded value supporting a trade size of approximately ₹1.25 crore based on 2% of the five-day average traded value. This liquidity profile ensures that option traders can execute sizeable positions without significant market impact.

Mojo Score Downgrade Reflects Deteriorating Fundamentals

Oberoi Realty’s MarketsMOJO score currently stands at 37.0, categorised as a Sell rating. This represents a downgrade from a previous Hold grade as of 5 January 2026, reflecting deteriorating fundamentals and weakening technical indicators. The company’s market capitalisation is approximately ₹59,905 crore, placing it in the mid-cap segment of the realty sector.

The downgrade is consistent with the bearish positioning observed in the options market, where investors appear to be anticipating further downside or increased volatility in the near term. The stock’s underperformance relative to the broader Sensex, which declined by only 0.50% today, and its sector’s 1.80% drop, underscores the specific challenges facing Oberoi Realty.

Expiry Patterns and Investor Sentiment

The expiry date of 27 January 2026 is approaching rapidly, and the concentration of put option activity at strikes near the current market price suggests that traders are actively managing risk or speculating on a potential correction. The open interest levels, while moderate, indicate that these positions are not merely intraday trades but part of a broader strategic stance.

Such patterns often precede heightened volatility, as market participants adjust their portfolios in response to evolving macroeconomic factors, sectoral trends, and company-specific news. Given the realty sector’s sensitivity to interest rate movements and regulatory developments, Oberoi Realty’s options market activity may be signalling investor caution ahead of key announcements or earnings releases.

Implications for Investors and Traders

For investors holding Oberoi Realty shares, the surge in put option volumes and the stock’s technical weakness suggest a cautious approach is warranted. Protective strategies such as buying puts or employing collars could help mitigate downside risk in the near term. Traders may also consider the elevated premiums on put options as an opportunity to implement bearish spreads or hedge existing long positions.

Conversely, contrarian investors might view the current pessimism as a potential entry point, provided they conduct thorough fundamental analysis and monitor sectoral developments closely. The realty sector’s cyclical nature means that price corrections can sometimes offer attractive valuations for long-term accumulation.

Sector and Market Context

Oberoi Realty’s underperformance relative to the broader realty sector and the Sensex highlights company-specific challenges amid a mixed market environment. While the Sensex declined modestly by 0.50% today, the realty sector fell by 1.80%, reflecting broader concerns over interest rate pressures and demand outlook. Oberoi Realty’s sharper decline of 4.71% in a single day underscores the heightened risk perception among investors.

Given these dynamics, monitoring option market activity alongside price and volume trends can provide valuable insights into evolving investor sentiment and potential inflection points for the stock.

Conclusion

The pronounced increase in put option trading at near-the-money strikes for Oberoi Realty Ltd ahead of the 27 January expiry signals a clear bearish bias among market participants. Coupled with the stock’s technical downtrend, recent downgrade in mojo rating, and underperformance relative to peers, the data suggests investors are bracing for further downside or volatility in the short term. Prudence and active risk management remain essential for stakeholders navigating this evolving landscape.

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