Reliance Industries Sees Heavy Put Option Activity Amid Bearish Hedging Ahead of January Expiry

Heavy Put Option Trading Signals Bearish Sentiment

On 9 January 2026, Reliance Industries witnessed robust activity in its put options segment, with 2,200 contracts traded at the ₹1,470 strike price. This translated into a turnover of ₹269.28 lakhs and an open interest of 2,664 contracts, underscoring a pronounced bearish positioning or hedging strategy among traders. The underlying stock price stood at ₹1,475.6, just marginally above the strike price, indicating that investors are bracing for potential volatility or a price correction in the near term.

The expiry date of 27 January 2026 is approaching rapidly, and the concentration of open interest at this strike price suggests that market participants are actively managing risk or speculating on a downward move. Such activity often precedes significant price movements, as traders adjust their portfolios in response to evolving market conditions.

Technical and Trend Analysis: Mixed Signals

Reliance Industries’ price performance today was largely in line with its sector peers, registering a modest gain of 0.18% compared to the Oil sector’s 0.29% rise and the Sensex’s decline of 0.19%. Notably, the stock has reversed its trend after four consecutive days of decline, signalling a potential short-term recovery.

From a moving averages perspective, the stock price remains above its 100-day and 200-day moving averages, which typically indicates a longer-term bullish trend. However, it is still trading below its 5-day, 20-day, and 50-day moving averages, reflecting short-term weakness and possible resistance levels. This divergence between short- and long-term indicators may be contributing to the increased put option activity as investors hedge against near-term downside risks while acknowledging the stock’s underlying strength.

Rising Investor Participation and Liquidity

Investor participation has notably increased, with delivery volume on 8 January reaching 1.3 crore shares, an 84.68% rise compared to the five-day average delivery volume. This surge in delivery volume suggests heightened interest and conviction among investors, possibly driven by the stock’s recent price action and broader market dynamics.

Liquidity remains robust, with the stock’s traded value supporting trade sizes up to ₹45.72 crore based on 2% of the five-day average traded value. This level of liquidity is favourable for institutional investors and traders looking to execute sizeable positions without significant market impact.

Mojo Score and Rating Update

Reliance Industries currently holds a Mojo Score of 62.0, reflecting a Hold rating, which was downgraded from a Buy on 6 January 2026. This adjustment signals a more cautious outlook by analysts, likely influenced by the recent price volatility and the mixed technical indicators. The company’s market capitalisation stands at a substantial ₹19,93,738.64 crore, categorising it firmly as a large-cap stock with a Market Cap Grade of 1.

The downgrade from Buy to Hold suggests that while the company’s fundamentals remain strong, near-term headwinds and sectoral uncertainties warrant a more measured investment approach. This sentiment aligns with the increased put option activity, as investors seek to protect gains or speculate on potential downside.

Sectoral Context and Broader Market Implications

Operating within the Oil industry, Reliance Industries is subject to fluctuations in global crude prices, regulatory developments, and domestic demand dynamics. The Oil sector has shown modest gains recently, but geopolitical tensions and supply chain disruptions continue to inject uncertainty. Against this backdrop, the surge in put options on Reliance may also reflect broader sectoral hedging strategies as investors navigate these risks.

Comparatively, the Sensex’s slight decline today (-0.19%) contrasts with Reliance’s marginal gain, highlighting the stock’s relative resilience. However, the cautious stance reflected in options trading suggests that market participants remain vigilant about potential volatility ahead.

Expiry Patterns and Investor Behaviour

The concentration of open interest in put options at the ₹1,470 strike price for the 27 January expiry is a critical indicator of investor sentiment. This strike price is close to the current underlying value, making these options particularly sensitive to price movements. Traders often use such options to hedge existing long positions or to speculate on a decline, especially when technical indicators signal short-term weakness.

Open interest of 2,664 contracts at this strike is significant, indicating that a sizeable number of investors are positioning for a potential downturn or are seeking insurance against downside risk. This pattern is consistent with the recent trend reversal after multiple days of decline, as market participants adjust their exposure accordingly.

Investor Takeaways and Outlook

For investors in Reliance Industries, the current surge in put option activity serves as a cautionary signal. While the company’s long-term fundamentals remain robust, the short-term technical indicators and sectoral uncertainties suggest a period of heightened volatility. The downgrade to a Hold rating by MarketsMOJO analysts further reinforces the need for prudence.

Investors should closely monitor price movements around key moving averages and the evolving open interest in options as the 27 January expiry approaches. Those holding long positions may consider protective strategies such as buying puts or employing collars to mitigate downside risk. Conversely, traders with a bearish outlook might find opportunities in the elevated put option volumes and strike price concentrations.

Overall, Reliance Industries remains a pivotal stock within the Oil sector, but the current market signals advocate for a balanced approach that weighs both upside potential and downside protection.

Summary of Key Metrics

• Put option contracts traded: 2,200 at ₹1,470 strike

• Turnover in put options: ₹269.28 lakhs

• Open interest in puts: 2,664 contracts

• Underlying stock price: ₹1,475.6

• Mojo Score: 62.0 (Hold, downgraded from Buy on 6 Jan 2026)

• Market cap: ₹19,93,738.64 crore (Large Cap)

• Delivery volume on 8 Jan: 1.3 crore shares (up 84.68% vs 5-day average)

• Liquidity supports trade size up to ₹45.72 crore

As expiry approaches, the interplay between technical factors, investor sentiment, and sectoral dynamics will be crucial in determining Reliance Industries’ near-term trajectory.

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