Reliance Industries Sees Heavy Put Option Activity Ahead of March Expiry

Put Option Activity Highlights

Data from the derivatives segment reveals that put options on Reliance Industries with expiry on 30 March 2026 have seen robust volumes and open interest across several strike prices near the current underlying value of ₹1,414.2. The most actively traded put strikes include ₹1,390, ₹1,410, ₹1,300, ₹1,350, and ₹1,450, with contract volumes ranging from 2,083 to 2,648 and open interest levels peaking at 6,331 contracts for the ₹1,300 strike.

Turnover figures further underscore the intensity of trading, with the ₹1,450 strike alone accounting for ₹7.85 crores in premium turnover, the highest among the put strikes. The ₹1,410 and ₹1,390 strikes follow closely with ₹3.69 crores and ₹2.71 crores respectively. This concentration of activity around strikes both below and slightly above the current market price points to a nuanced market view, blending hedging with speculative bearish positioning.

Market Context and Stock Performance

Reliance Industries has outperformed its oil sector peers by 0.82% on the day, registering a 1.77% gain compared to the sector’s 0.84% and the Sensex’s decline of 0.37%. The stock has been on a two-day winning streak, delivering a cumulative return of 5.34% over this period. Intraday, it touched a high of ₹1,419.5, marking a 2.17% rise. However, technical indicators show the stock trading above its 5-day moving average but below its 20-day, 50-day, 100-day, and 200-day averages, signalling a mixed momentum picture.

Investor participation has also increased notably, with delivery volumes on 5 March rising by 35.38% to 1.36 crore shares compared to the five-day average. Liquidity remains ample, supporting trade sizes up to ₹64.98 crores comfortably, which facilitates the heavy options activity observed.

Interpreting the Put Option Interest

The elevated open interest at the ₹1,300 and ₹1,350 strikes, with 6,331 and 5,210 contracts respectively, suggests that a significant number of market participants are either hedging existing long positions or speculating on a downside move. The ₹1,300 strike, trading well below the current price, indicates protection against a sharp correction, while the ₹1,350 strike offers a nearer-term hedge.

Meanwhile, the ₹1,450 strike, which is slightly above the current market price, has also attracted substantial put buying, with 2,648 contracts traded and an open interest of 2,698. This could reflect a strategy to lock in gains or protect against a mild pullback after recent gains. The high turnover at this strike, nearly ₹7.85 crores, highlights the premium investors are willing to pay for downside protection at this level.

Overall, the distribution of put option activity across these strikes paints a picture of cautious investor sentiment, with a tilt towards risk management amid uncertain near-term price direction.

Reliance’s Mojo Score and Market Position

Reliance Industries currently holds a Mojo Score of 47.0, categorised as a Sell, having been downgraded from Hold on 25 February 2026. The downgrade reflects deteriorating fundamentals or technical signals as assessed by MarketsMOJO’s proprietary analytics. The company’s market cap grade stands at 1, indicating its status as a large-cap heavyweight with a market capitalisation of ₹18,80,743 crores.

This rating shift aligns with the cautious stance evident in the options market, where investors appear to be positioning defensively despite the stock’s recent outperformance relative to its sector.

Expiry Patterns and Implications for Investors

The expiry date of 30 March 2026 is approaching, and the concentration of put option activity around this date suggests that investors are actively recalibrating their risk exposures. The clustering of open interest near the current price level and slightly out-of-the-money strikes indicates that market participants are preparing for potential volatility or a correction in the coming weeks.

For investors holding long positions in Reliance Industries, the surge in put buying could be interpreted as a warning signal to consider protective strategies such as buying puts or tightening stop-loss levels. Conversely, traders with a bearish outlook may view the heavy put volumes as confirmation of downside momentum building up, potentially targeting the ₹1,300 to ₹1,350 range as key support zones.

Given the stock’s mixed technical signals and the downgrade in Mojo Grade, a cautious approach is advisable. Monitoring open interest changes and premium movements in these put strikes will be critical to gauge evolving market sentiment as expiry nears.

Conclusion: Bearish Hedging Dominates Ahead of March Expiry

Reliance Industries Ltd’s options market activity ahead of the 30 March 2026 expiry reveals a pronounced tilt towards bearish hedging and speculative put buying. Despite the stock’s recent gains and outperformance relative to its sector, investors appear wary of near-term downside risks, as evidenced by the substantial open interest and turnover in put options at strikes ranging from ₹1,300 to ₹1,450.

The downgrade in Mojo Grade to Sell and the stock’s positioning below key longer-term moving averages reinforce the cautious outlook. Market participants should closely monitor the evolving options landscape and underlying price action to navigate potential volatility and adjust their portfolios accordingly.

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