Put Option Activity Highlights
On 2 July 2026, Reliance Industries emerged as the most active stock in put options trading, with 3,432 contracts exchanged at the ₹1,300 strike price expiring on 28 July 2026. This activity generated a turnover of ₹459.03 lakhs, underscoring substantial investor interest in downside protection or speculative bearish bets. The open interest at this strike stands at 10,046 contracts, indicating a sizeable build-up of positions that could influence price dynamics as expiry approaches.
Underlying Stock Performance and Technical Context
Reliance Industries closed near ₹1,300.4, hovering just 3.65% above its 52-week low of ₹1,253.2. The stock has underperformed its sector by 0.6% on the day, with a 1-day return of -0.51%, contrasting with the Oil sector’s modest gain of 0.06% and the Sensex’s 0.28% rise. Notably, the share price is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling persistent downward momentum and technical weakness.
Investor participation has also waned, with delivery volumes on 1 July falling sharply by 52.69% compared to the 5-day average, registering 39.94 lakh shares. Despite this, liquidity remains adequate, with the stock’s traded value supporting sizeable transactions up to ₹34.06 crores based on 2% of the 5-day average traded value.
Mojo Score and Analyst Sentiment
Reliance Industries currently holds a Mojo Score of 41.0, categorised as a Sell rating, a downgrade from its previous Hold grade as of 11 May 2026. This reflects a deteriorating outlook from a fundamental and technical perspective, reinforcing the bearish sentiment evident in the options market. The company remains a large-cap stalwart with a market capitalisation of ₹17,75,333 crores, but recent trends suggest caution among investors.
Implications of Put Option Concentration at ₹1,300 Strike
The concentration of put options at the ₹1,300 strike price, which closely aligns with the current market price, suggests that traders are positioning for a potential decline or seeking to hedge existing long exposures. The sizeable open interest indicates that many investors expect the stock to test or breach this level by expiry, or at least want protection against downside risk.
Such heavy put activity often precedes increased volatility, especially as the expiry date nears. Market participants should monitor changes in open interest and volume in the coming weeks to gauge whether bearish bets are being unwound or intensified. Additionally, the stock’s proximity to its 52-week low adds to the risk of further downside pressure.
Sector and Market Context
The oil sector has faced headwinds recently due to fluctuating crude prices and global economic uncertainties. Reliance Industries, as a key player, is not immune to these pressures. Its underperformance relative to the sector and broader market indices highlights the challenges it faces. Investors’ increased use of put options may also reflect concerns about macroeconomic factors impacting oil demand and refining margins.
Investor Strategy and Risk Considerations
For investors holding Reliance shares, the current environment suggests prudence. The elevated put option activity can be interpreted as a signal to reassess risk exposure or consider protective strategies such as buying puts or employing collars. Conversely, speculative traders might view the put volume as an opportunity to capitalise on potential volatility spikes.
Given the stock’s technical weakness and the downgrade in its Mojo Grade, a cautious stance is warranted. Monitoring upcoming quarterly results, crude oil price movements, and sector developments will be critical in forming a comprehensive view on the stock’s trajectory.
Conclusion
Reliance Industries Ltd’s pronounced put option activity at the ₹1,300 strike price ahead of the 28 July 2026 expiry underscores a growing bearish sentiment among market participants. Coupled with technical underperformance and a recent downgrade to a Sell rating, the stock faces near-term headwinds. Investors should remain vigilant, balancing hedging strategies with an eye on broader sector trends and market catalysts.
