Reliance Industries Sees Heavy Put Option Activity Ahead of March Expiry

Heavy Put Option Volumes Concentrated Near Current Price

Data from the options market reveals that Reliance Industries is the most active stock in put options, with substantial contracts traded across multiple strike prices expiring on 30 March 2026. The strike prices of ₹1,320, ₹1,340, ₹1,350, ₹1,370, and ₹1,380 have seen particularly high activity, with the ₹1,350 strike leading in open interest at 4,105 contracts. This level is just about 2% below the current underlying value, indicating that traders are positioning for potential downside or hedging existing long exposures.

The number of contracts traded at these strikes is notable: 1,557 contracts at ₹1,320, 2,148 at ₹1,340, 2,933 at ₹1,350, 2,888 at ₹1,370, and 2,073 at ₹1,380. Turnover figures further underscore the intensity of activity, with the ₹1,370 strike generating ₹4.33 crores and the ₹1,350 strike ₹3.38 crores in premium turnover. The ₹1,380 strike also saw a hefty ₹3.56 crores turnover, reflecting strong interest in downside protection close to the current price.

Market Context and Stock Performance

Reliance Industries, a heavyweight in the oil sector with a market capitalisation of ₹18,20,861 crores, has been trading in line with its sector peers. The Oil Exploration and Refinery sector gained 2.44% on the day, while Reliance itself rose by 2.08%, touching an intraday high of ₹1,378.9, a 2.52% increase. This marks a reversal after three consecutive days of decline, suggesting some short-term recovery.

However, technical indicators remain cautious. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling that the broader trend remains under pressure. Rising delivery volumes, which surged by 213.97% to 2.17 crore shares on 4 March 2026 compared to the five-day average, indicate heightened investor participation and possible repositioning ahead of expiry.

Bearish Positioning and Hedging Strategies Evident

The concentration of put option open interest just below and around the current market price suggests that investors are either hedging long positions or speculating on a near-term correction. The ₹1,350 strike, with the highest open interest of 4,105 contracts, stands out as a key level where traders expect potential support or downside risk.

Additionally, the sizeable turnover at the ₹1,370 and ₹1,380 strikes indicates that some market participants are seeking protection against moderate declines, while the ₹1,320 strike, further out of the money, may represent more speculative bearish bets or deeper hedges.

Reliance’s Mojo Score currently stands at 47.0, with a Mojo Grade of Sell, downgraded from Hold on 25 February 2026. This downgrade reflects deteriorating fundamentals or technical outlook, which may be influencing the increased put option activity. The Market Cap Grade remains at 1, underscoring the stock’s large-cap status but also signalling limited upside from a valuation perspective.

Expiry Patterns and Implications for Investors

With the 30 March 2026 expiry less than a month away, the clustering of put options at these strike prices is a critical indicator for traders and investors. The expiry week often brings heightened volatility as positions are squared off or rolled forward. The current open interest and turnover data suggest that market participants are bracing for potential downside or at least protecting gains amid uncertain macroeconomic or sector-specific factors.

Investors should monitor the stock’s price action relative to these strike prices closely. A breach below ₹1,350 could trigger further downside momentum, while a sustained move above ₹1,380 might alleviate some bearish pressures. The interplay between spot price and option strikes will be pivotal in shaping near-term sentiment.

Sector and Broader Market Comparison

Reliance’s performance today, with a 2.08% gain, slightly lagged the Oil Exploration and Refinery sector’s 2.44% rise but outperformed the Sensex’s 0.53% increase. This relative strength, despite the bearish options positioning, highlights the complex dynamics at play where investors may be balancing optimism on sector fundamentals with caution on stock-specific risks.

The stock’s liquidity remains robust, with an average traded value sufficient to support trade sizes of approximately ₹56.32 crores, ensuring that option and equity traders can execute sizeable positions without undue market impact.

Given the mixed signals from technicals, options activity, and sector trends, investors should adopt a nuanced approach. Those holding long positions might consider protective strategies such as buying puts or employing collars, while speculative traders could explore put spreads to capitalise on potential downside with limited risk.

Outlook and Strategic Considerations

Reliance Industries’ current market environment is characterised by cautious optimism tempered by technical weakness and increased hedging. The downgrade to a Sell grade by MarketsMOJO’s Investment Committee reflects concerns over near-term headwinds, possibly linked to oil price volatility, regulatory developments, or earnings outlook.

Investors should closely monitor the stock’s movement relative to the key put strike prices, especially ₹1,350 and ₹1,370, as these levels are focal points for option expiry dynamics. A decisive move below these could signal a deeper correction, while holding above may restore confidence.

In the broader context, Reliance’s large-cap stature and sector leadership mean it will remain a key barometer for oil sector sentiment. The interplay between equity and options markets provides valuable insights into investor psychology and risk management strategies ahead of the March expiry.

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