Put Option Volumes and Open Interest Highlight Bearish Positioning
On 7 September 2026, Reliance Industries recorded notable volumes in put options expiring on 29 September 2026. The strike price of ₹1,320 saw the highest number of contracts traded, with 2,928 contracts exchanging hands, generating a turnover of ₹2.78 crores. Open interest at this strike remains elevated at 10,115 contracts, indicating sustained investor interest in downside protection or speculative bearish bets.
Close behind, the ₹1,300 strike price put options traded 1,997 contracts with a turnover of ₹1.15 crores and an open interest of 11,509 contracts. The underlying stock price at the time stood at ₹1,317.20, placing these strike prices just below or near the current market value, which is typical for investors seeking to hedge against moderate declines or position for a pullback.
Stock Price Movement and Technical Context
Reliance Industries’ share price has been trading in a narrow band, fluctuating by just ₹0.30 on the day, reflecting subdued volatility. The stock closed marginally lower by 0.34%, slightly outperforming the oil sector’s 0.58% decline and the broader Sensex’s 0.24% fall. Technical indicators show the stock trading above its 5-day, 20-day, and 50-day moving averages but remaining below the 100-day and 200-day averages, suggesting a mixed medium-term trend.
Investor participation has waned recently, with delivery volumes on 4 September falling by 22.55% compared to the five-day average, signalling cautious sentiment. Despite this, liquidity remains robust, with average traded value supporting sizeable trades up to ₹45.1 crores, ensuring that option market activity is supported by adequate underlying stock liquidity.
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 status as of 11 May 2026. This reflects a deteriorating outlook based on a combination of fundamental and technical factors, including valuation concerns and sector headwinds. The company’s large-cap status and dominant position in the oil industry provide some stability, but the recent shift in sentiment is mirrored in the options market’s increased put activity.
Expiry Patterns and Investor Strategies
The concentration of put option activity at strike prices ₹1,300 and ₹1,320, both expiring on 29 September 2026, suggests investors are positioning for potential downside risks over the coming weeks. This could be driven by macroeconomic uncertainties, oil price volatility, or company-specific factors such as earnings expectations or regulatory developments.
Such elevated open interest in puts near the money often indicates hedging by long shareholders seeking protection against a price drop or speculative traders anticipating a correction. The relatively high turnover in these strikes also points to active repositioning ahead of the expiry, which could lead to increased volatility as the date approaches.
Comparative Sector and Market Context
Within the oil sector, Reliance Industries remains a bellwether stock, and its option market activity often presages broader sector sentiment. The sector’s 0.58% decline on the day contrasts with Reliance’s smaller loss, but the put-heavy options flow may signal caution among investors about near-term prospects. This is particularly relevant given global energy market uncertainties and domestic policy shifts impacting oil companies.
Compared to the Sensex’s modest 0.24% decline, Reliance’s performance and option activity underscore a nuanced investor stance—balancing the company’s strong fundamentals against emerging risks.
Implications for Investors
For investors, the heavy put option volumes and open interest at strikes just below the current price highlight a cautious or defensive posture. Those holding Reliance shares might consider the increased cost of hedging or the potential for downside volatility in the near term. Conversely, traders looking to capitalise on volatility could monitor these strikes for potential price swings as expiry nears.
Given the stock’s current technical positioning and the downgrade in Mojo Grade to Sell, a prudent approach would be to closely watch market developments and option market signals for confirmation of trend direction.
Outlook Ahead of 29 September Expiry
As the 29 September 2026 expiry approaches, the options market will likely remain a key barometer of investor sentiment towards Reliance Industries. The substantial open interest in put options at ₹1,300 and ₹1,320 strikes suggests that downside protection remains a priority for many market participants. Any significant price movement below these levels could trigger further option-related activity, potentially amplifying volatility.
Investors should also consider broader macroeconomic factors, including crude oil price trends, currency fluctuations, and domestic policy changes, which could influence Reliance’s stock performance and option market dynamics in the coming weeks.
