Put Option Activity Highlights
On 25 March 2026, Reliance Industries Ltd (NSE: RELIANCE) recorded substantial put option volumes for contracts expiring on 30 March 2026. The most actively traded put options were at strike prices of ₹1,410 and ₹1,400, closely aligned with the underlying stock price of ₹1,421.20. Specifically, 2,189 contracts were traded at the ₹1,410 strike, generating a turnover of ₹12.08 crores, while the ₹1,400 strike saw even heavier activity with 3,570 contracts traded and a turnover of ₹13.57 crores.
Open interest figures further underscore the concentration of bearish bets at these strikes. The ₹1,400 put option holds an open interest of 10,974 contracts, indicating a significant build-up of positions that could be used either for hedging existing long exposure or speculating on a downside move. The ₹1,410 strike also maintains a notable open interest of 3,317 contracts.
Market Context and Stock Performance
Reliance Industries, a large-cap heavyweight in the oil sector with a market capitalisation of approximately ₹19.1 lakh crores, has been trading in a relatively narrow range over recent sessions. The stock has gained 0.6% over the past two days, with a 1-day return of 0.43%, slightly lagging the broader Sensex gain of 1.38% on 25 March 2026. The sector itself was up 0.47% on the day, placing Reliance’s performance broadly in line with its peers.
Technical indicators reveal a mixed picture. The stock price currently trades above its 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term strength. However, it remains below the longer-term 100-day and 200-day moving averages, suggesting that the broader trend has yet to fully confirm a sustained uptrend. Delivery volumes have risen by 3.42% compared to the 5-day average, with 96.67 lakh shares delivered on 24 March, reflecting rising investor participation.
Implications of Put Option Concentration
The heavy put option activity near the current price level is indicative of increased hedging or bearish sentiment among market participants. Investors holding long positions in Reliance may be purchasing puts as insurance against a potential pullback, especially with the expiry date approaching. Alternatively, traders could be positioning for a downside move, anticipating profit from a decline below the ₹1,400–₹1,410 range.
Given the stock’s recent gains and the narrow trading range of ₹7.80, the elevated put volumes suggest a cautious stance. The open interest concentration at the ₹1,400 strike is particularly noteworthy, as it represents a key psychological and technical support level. Should the stock breach this level decisively, it could trigger further downside pressure, potentially validating the bearish bets.
Reliance’s Mojo Score and Analyst Sentiment
Reliance Industries currently holds a Mojo Score of 47.0, categorised as a Sell rating, a downgrade from its previous Hold grade on 25 February 2026. This shift reflects a deterioration in the company’s quality metrics and trend assessments, signalling caution to investors. The downgrade aligns with the observed increase in put option activity, reinforcing the narrative of heightened risk perception.
Despite the stock’s large-cap status and dominant position in the oil sector, the recent technical and sentiment signals suggest that investors should remain vigilant. The combination of a Sell Mojo Grade and concentrated put option interest points to a market expectation of potential volatility or correction in the near term.
Expiry Patterns and Strategic Considerations
With the 30 March 2026 expiry imminent, option traders are likely adjusting their positions to manage risk or capitalise on expected price movements. The clustering of put options at strikes just below the current market price is a common pattern ahead of expiry, as investors seek to hedge against downside while maintaining upside exposure.
For investors and traders, monitoring the open interest changes and volume spikes in these strikes will be crucial in the coming days. A sustained increase in put open interest combined with declining stock prices could confirm a bearish trend, whereas a drop in put volumes or a price rebound above the ₹1,410 level might alleviate downside concerns.
Conclusion: Cautious Outlook for Reliance Industries
In summary, Reliance Industries Ltd is currently experiencing significant put option activity concentrated at strike prices near ₹1,400 and ₹1,410 ahead of the March expiry. This pattern, coupled with a recent downgrade to a Sell Mojo Grade and mixed technical signals, suggests that investors are adopting a cautious or defensive stance. While the stock has shown resilience with modest gains and rising delivery volumes, the elevated bearish positioning implies that downside risks remain present.
Market participants should closely watch the stock’s price action relative to these key strike levels and expiry dynamics to gauge the evolving sentiment. For long-term investors, the current environment calls for prudent risk management, while traders may find opportunities in the volatility expected around expiry.
