One 97 Communications Sees Heavy Put Option Activity Amid Bearish Sentiment

Intense Put Option Trading Highlights Bearish Outlook

On 19 February 2026, One 97 Communications Ltd emerged as the most active stock in put options trading, with 3,025 contracts changing hands at the ₹1160 strike price expiring on 24 February 2026. This volume translated into a turnover of approximately ₹339.28 lakhs, underscoring the substantial interest in downside protection or speculative bearish bets. The open interest for these puts stands at 1,233 contracts, indicating that a sizeable number of traders are maintaining their bearish positions or hedges as expiry approaches.

The underlying stock price at the time was ₹1163.30, just marginally above the strike price, suggesting that traders are positioning for a potential decline below this level in the near term. Such activity often precedes heightened volatility and can be indicative of market participants’ expectations of a price correction or increased downside risk.

Price Performance and Technical Context

One 97 Communications Ltd underperformed its Financial Technology sector by 2.65% on the day, with the stock price falling 2.70% to close near ₹1163.30. The intraday low touched ₹1165.60, marking a 2.83% drop from the previous close. This decline followed two consecutive days of gains, signalling a possible trend reversal in the short term.

From a technical standpoint, the stock price remains above its 5-day and 200-day moving averages but is trading below the 20-day, 50-day, and 100-day moving averages. This mixed technical picture suggests that while short-term momentum may be weakening, the longer-term trend has not yet fully deteriorated. However, the recent dip below key intermediate moving averages could invite further selling pressure if the stock fails to regain these levels.

Investor participation has also waned, with delivery volumes on 18 February falling by 18.37% to 15.41 lakh shares compared to the 5-day average. This decline in delivery volume may reflect reduced conviction among buyers, adding to the cautious sentiment prevailing in the market.

Market Capitalisation and Sectoral Positioning

With a market capitalisation of ₹74,680.77 crore, One 97 Communications Ltd is classified as a mid-cap stock within the Financial Technology (Fintech) sector. Despite its sizeable market cap, the company’s Mojo Score has recently been downgraded from a Buy to a Hold rating as of 24 December 2025, with a current score of 68.0. This downgrade reflects a more cautious outlook on the stock’s near-term prospects, factoring in valuation concerns and sector headwinds.

The company’s Market Cap Grade is 2, indicating moderate size relative to its peer group. This positioning means that while the stock is liquid enough for sizeable trades—supported by a 2% average traded value threshold allowing for Rs 9.05 crore trade sizes—it remains vulnerable to sector-specific volatility and investor sentiment shifts.

Implications of Put Option Activity for Investors

The heavy put option activity at the ₹1160 strike price suggests that market participants are either hedging existing long positions or speculating on a near-term decline in One 97 Communications Ltd’s share price. Put options provide a form of insurance against downside risk, and the elevated open interest indicates that many investors are preparing for potential volatility around the upcoming expiry date.

Given the stock’s recent underperformance relative to its sector and the broader Sensex—which declined by 0.13% on the same day—the bearish positioning is understandable. The Financial Technology sector itself has been facing headwinds from regulatory scrutiny and competitive pressures, which may be weighing on investor sentiment.

For traders, the concentration of put contracts near the current stock price could act as a magnet for price movement, as option writers and holders adjust their positions in response to market developments. This dynamic often leads to increased volatility in the days leading up to expiry, presenting both risks and opportunities for active investors.

Comparative Sector and Market Performance

On 19 February 2026, the Financial Technology sector recorded a modest decline of 0.21%, underperforming the Sensex’s marginal fall of 0.13%. One 97 Communications Ltd’s sharper drop of 2.70% highlights its relative weakness within the sector. This divergence may be attributed to company-specific factors such as earnings outlook, competitive positioning, or investor concerns about valuation.

Despite the recent downgrades and price weakness, the stock’s liquidity remains robust, supported by consistent trading volumes and a sizeable market cap. This liquidity is crucial for institutional investors seeking to enter or exit positions without excessive market impact.

Outlook and Investor Considerations

Investors should closely monitor the stock’s price action in the coming days, especially as the 24 February expiry approaches. The concentration of put options at the ₹1160 strike price may create a support zone, but a breach below this level could trigger accelerated selling pressure. Conversely, a rebound above key moving averages could alleviate some bearish sentiment and restore confidence.

Given the recent downgrade from Buy to Hold and the current Mojo Score of 68.0, a cautious approach is warranted. Investors may consider hedging strategies or selective profit-taking to manage risk. Additionally, evaluating alternative stocks within the Financial Technology sector or broader mid-cap universe could provide better risk-adjusted opportunities.

Overall, the heightened put option activity serves as a valuable barometer of market sentiment, signalling that traders are bracing for potential near-term volatility in One 97 Communications Ltd’s shares.

Summary

One 97 Communications Ltd’s surge in put option trading at the ₹1160 strike price ahead of the 24 February 2026 expiry highlights a growing bearish stance among investors. The stock’s recent underperformance relative to its sector and the broader market, combined with technical weakness and declining investor participation, supports this cautious outlook. While liquidity remains adequate for sizeable trades, the downgrade to a Hold rating and mixed technical signals suggest that investors should remain vigilant and consider hedging or alternative investments in the Financial Technology space.

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