P I Industries Sees Heavy Put Option Activity Amid Bearish Market Sentiment

Intense Put Option Trading Highlights Bearish Sentiment

On 13 February 2026, P I Industries Ltd emerged as the most active stock in put options, with 5,062 contracts traded at the ₹3,100 strike price expiring on 24 February 2026. This surge in put option volume generated a turnover of approximately ₹844.13 lakhs, underscoring substantial investor interest in downside protection or speculative bearish bets. The open interest for these puts stands at 1,516 contracts, indicating that a sizeable number of traders are maintaining or building bearish positions as the expiry date approaches.

The underlying stock price at the time was ₹3,106.90, placing the ₹3,100 strike close to the money and making these puts particularly relevant for hedging or directional plays. The concentration of activity at this strike price suggests that market participants are bracing for potential downside or volatility in the near term.

Price Action and Technical Indicators Confirm Downtrend

P I Industries has been under pressure in recent sessions, underperforming its sector and broader benchmarks. The stock has declined by 5.28% over the past two trading days, with a notable gap down of 5.81% at the open on 13 February 2026. Intraday lows touched ₹3,035, marking a significant dip from recent levels. The weighted average price of traded shares skewed towards the lower end of the day’s range, signalling selling dominance.

Technically, the stock is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — reinforcing the bearish trend. This technical weakness aligns with the increased put option activity, as investors seek to hedge existing long positions or speculate on further declines.

Sectoral and Market Context

The Pesticides & Agrochemicals sector itself has been facing headwinds, with a sectoral decline of 2.22% on the day. P I Industries’ 3.44% single-day loss notably outpaced the sector’s fall of 1.43% and the Sensex’s 0.98% decline, highlighting its relative weakness. Rising investor participation is evident, with delivery volumes on 12 February reaching 1.82 lakh shares — a 37.45% increase over the five-day average — suggesting active repositioning by market participants.

Mojo Score and Ratings Reflect Deteriorating Fundamentals

MarketsMOJO assigns P I Industries a Mojo Score of 26.0, categorising it as a Strong Sell. This rating was upgraded from a Sell to Strong Sell on 8 September 2025, reflecting a marked deterioration in the company’s financial and operational outlook. The stock’s market capitalisation stands at ₹47,205.58 crores, placing it in the mid-cap segment, but its Market Cap Grade is a low 2, indicating limited strength relative to peers.

These fundamental concerns, combined with technical weakness and bearish options positioning, suggest that investors are increasingly cautious about the stock’s near-term prospects.

Put Options as a Hedge and Speculative Tool

The surge in put option activity at the ₹3,100 strike price is consistent with both hedging and speculative strategies. Long investors may be purchasing puts to protect against further downside risk, especially given the stock’s recent underperformance and negative technical signals. Conversely, traders with a bearish outlook might be buying puts to capitalise on expected declines, given the stock’s vulnerability relative to sector and market benchmarks.

Open interest of 1,516 contracts at this strike indicates that these positions are not merely transient but are being held or accumulated, which could amplify volatility as expiry approaches.

Liquidity and Trading Dynamics

P I Industries remains sufficiently liquid for sizeable trades, with a 2% threshold of the five-day average traded value supporting trade sizes up to ₹1.95 crores. This liquidity facilitates active options and equity trading, allowing investors to implement complex hedging or directional strategies without significant market impact.

Implications for Investors

Investors holding P I Industries shares should be mindful of the growing bearish sentiment reflected in the options market and technical indicators. The strong put option activity near the current price level suggests that downside risk is being actively priced in. Those with long exposure may consider protective strategies such as buying puts or tightening stop-loss levels to mitigate potential losses.

Meanwhile, traders seeking to capitalise on volatility could explore put options as a means to benefit from further declines or hedge existing positions. However, given the stock’s mid-cap status and sectoral headwinds, careful risk management remains essential.

Outlook and Market Positioning

While P I Industries operates in a vital sector with long-term growth potential, current market dynamics and deteriorating fundamentals have weighed on its near-term outlook. The stock’s underperformance relative to the Pesticides & Agrochemicals sector and broader indices, combined with the strong sell rating and bearish options positioning, indicate that investors should approach with caution.

Monitoring open interest trends and price action in the coming days will be crucial to gauge whether the bearish momentum sustains or if a reversal emerges ahead of the 24 February expiry.

Conclusion

The pronounced put option activity in P I Industries Ltd ahead of the February expiry highlights a clear shift towards bearish sentiment and risk aversion among investors. Coupled with technical weakness and a strong sell fundamental rating, the stock faces significant headwinds in the short term. Market participants should weigh these factors carefully when considering exposure to PIIND, balancing potential downside risks with sectoral and company-specific developments.

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