Reliance Industries Sees Heavy Put Option Activity Ahead of March Expiry

Overview of Put Option Activity

Data from the options market reveals that Reliance Industries has been the most active stock in put options trading, with multiple strike prices seeing substantial volumes and open interest. The expiry date for these contracts is 30 March 2026, less than three weeks away, intensifying focus on near-term price movements.

The strike prices with the highest put option activity include ₹1,360, ₹1,370, ₹1,390, ₹1,430, and ₹1,300. Among these, the ₹1,360 strike saw the largest number of contracts traded at 3,133, generating a turnover of ₹213.67 lakhs and an open interest of 2,040 contracts. The ₹1,430 strike followed closely with 2,966 contracts traded, turnover of ₹511.04 lakhs, and open interest of 1,434 contracts.

Notably, the ₹1,300 strike price recorded the highest open interest at 5,596 contracts, despite a relatively lower turnover of ₹67.73 lakhs. This suggests a significant build-up of bearish bets or hedges at this lower strike, indicating investor expectations of potential downside risk below the current market price.

Market Context and Stock Performance

Reliance Industries has underperformed its sector by 0.27% on the day, with a one-day return of -0.33% compared to the Oil sector’s -0.45% and the Sensex’s -0.32%. The stock has been on a two-day losing streak, falling 1.29% cumulatively, signalling some near-term weakness. Its current price is above the 5-day moving average but remains below the 20-day, 50-day, 100-day, and 200-day moving averages, reflecting a mixed technical picture with longer-term downward pressure.

Investor participation appears to be waning, as delivery volume on 10 March dropped sharply by 54.63% to 64.08 lakh shares compared to the five-day average. Despite this, liquidity remains adequate for sizeable trades, with a 2% threshold of the five-day average traded value equating to ₹70.28 crore.

Implications of Put Option Concentration

The concentration of put options at strike prices near and below the current market value suggests that investors are positioning for a potential decline or are actively hedging existing long exposures. The ₹1,300 strike, in particular, stands out as a key level of interest, with open interest exceeding 5,500 contracts. This level is approximately 7% below the current price, indicating a cautious outlook on Reliance’s near-term price trajectory.

High turnover at the ₹1,430 strike price, which is slightly above the current market price, also points to protective puts being purchased to guard against a pullback. The sizeable open interest and trading volumes across multiple strikes reflect a broad-based hedging strategy rather than speculative short-term bets alone.

Rating Downgrade and Market Sentiment

MarketsMOJO recently downgraded Reliance Industries from Hold to Sell on 25 February 2026, assigning a Mojo Score of 47.0 and a Market Cap Grade of 1, signalling weak fundamentals and deteriorating outlook. This downgrade aligns with the increased bearish positioning seen in the options market and the stock’s recent underperformance relative to its sector and benchmark indices.

Investors should note that Reliance’s large market capitalisation of ₹19,06,793 crore and its dominant position in the oil sector do not insulate it from near-term volatility. The combination of technical weakness, falling investor participation, and heavy put option activity suggests a cautious stance is warranted.

Expiry Patterns and Strategic Considerations

With the 30 March expiry approaching, the elevated open interest in put options may lead to increased volatility as traders adjust or unwind positions. The clustering of open interest around ₹1,300 and ₹1,360 strikes could create support zones, but also potential pressure points if the stock breaches these levels.

For investors and traders, monitoring the changes in open interest and volume in the days leading up to expiry will be critical to gauge market sentiment shifts. The current data implies that downside protection is being prioritised, possibly reflecting concerns over oil price fluctuations, regulatory developments, or broader market uncertainties impacting the energy sector.

Conclusion: Cautious Outlook for Reliance Industries

The surge in put option activity across multiple strike prices for Reliance Industries Ltd ahead of the March expiry underscores a growing bearish sentiment and hedging demand among market participants. Coupled with a recent downgrade to Sell and technical indicators signalling weakness, investors should approach the stock with caution in the near term.

While Reliance remains a heavyweight in the oil sector with substantial market capitalisation, the current options market positioning suggests that downside risks are being actively managed. Traders and investors would be well advised to monitor open interest trends and price action closely as expiry approaches, adjusting their strategies accordingly to mitigate potential volatility.

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