12,228 Put Contracts at Rs 1,250 Strike on Reliance Industries Ltd as Stock Hits New 52-Week Low

Put Options Event and Cash Market Context

On 15 September 2026, Reliance Industries Ltd saw 12,228 put contracts trade at the Rs 1,250 strike for the 29 September expiry. The turnover for these contracts was substantial at ₹1,076.06 crores, with open interest standing at 5,628 contracts. The underlying stock price was Rs 1,243.80, marginally below the strike, indicating these puts are slightly in-the-money (ITM).

The stock has been on a downward trajectory, losing 6.03% over the past six sessions and hitting a new 52-week low of Rs 1,242.20 today. It trades below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum. Delivery volumes have also declined sharply by 36.41% compared to the five-day average, suggesting waning investor participation in the cash market.

This combination of heavy put activity and weakening cash market performance sets the stage for a nuanced interpretation of the options data — is this a directional bearish bet or a more complex positioning strategy?

Strike Price Analysis: Moneyness and Distance from Underlying

The Rs 1,250 strike sits just about 0.5% above the current stock price of Rs 1,243.80, placing these puts slightly ITM. This proximity suggests that the put buyers are not targeting a distant downside but are positioning for a near-term decline or protection against further losses. The closeness to the underlying price contrasts with out-of-the-money (OTM) puts, which often indicate hedging or speculative bets on a sharp fall.

Given the stock’s recent slide and the strike’s ITM status, the put activity likely reflects a directional bearish stance or a protective hedge for existing long positions that have suffered losses. The Rs 1,250 strike also aligns closely with recent support levels, which may be a technical reference point for traders.

Interpreting the Put Activity: Bearish, Hedging, or Put Writing?

Put option activity can be ambiguous. The three main interpretations are:

• Bearish positioning: Buying ITM or ATM puts on a falling stock typically signals expectation of further declines.
• Protective hedging: Investors holding long stock positions may buy puts to limit downside risk amid volatility.
• Put writing (selling): Collecting premium by selling puts, often a bullish strategy if the seller expects the stock to stay above the strike.

In this case, the large volume of ITM puts combined with the stock’s consistent decline and breach of multiple moving averages points strongly towards bearish positioning or protective hedging rather than put writing. The open interest of 5,628 contracts, while significant, is less than half the day’s traded contracts, indicating a large portion of fresh put buying rather than just rollovers or writing.

Put writing would typically be accompanied by high open interest relative to traded volume and often at OTM strikes, which is not the case here. The premium collected would also be a factor, but given the stock’s fall and strike proximity, the risk for put sellers is elevated.

Open Interest and Contracts Analysis

The ratio of contracts traded (12,228) to open interest (5,628) is approximately 2.17:1, indicating a substantial amount of fresh put buying on the day. This suggests that traders are actively initiating new bearish or protective positions rather than merely adjusting existing ones.

Such fresh positioning at an ITM strike on a declining stock reinforces the interpretation of directional bearishness or hedging. The open interest level is moderate for a large-cap stock like Reliance Industries Ltd, implying room for further accumulation or unwinding in the coming sessions.

Comparatively, the stock’s liquidity and turnover support the feasibility of such sizeable options trades without excessive market impact, making these positions meaningful in the context of overall market sentiment.

Cash Market Context: Technicals and Delivery Volumes

Reliance Industries Ltd is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — a technical configuration that typically signals sustained downward momentum. The stock’s narrow trading range of just Rs 0.3 today despite the new 52-week low suggests a lack of strong buying interest at current levels.

Delivery volumes have dropped by 36.41% compared to the recent average, indicating reduced investor participation in the cash market. This thinning of delivery-backed trading often precedes increased volatility or further price weakness, which may be why put buyers are seeking downside protection or positioning for continued declines — does this signal a deeper correction or a technical pause?

Delivery Volume and Market Participation

The delivery volume of 45.9 lakh shares on 11 September, down significantly from the five-day average, points to cautious investor behaviour. Lower delivery volumes during a downtrend often reflect a lack of conviction among buyers, which can embolden put buyers to either hedge or take bearish positions.

This reduced participation contrasts with the high liquidity in the options market, where large put trades are occurring, highlighting a divergence between cash and derivatives markets that often precedes notable price moves.

Conclusion: Most Likely Interpretation of Put Activity

The heavy put option activity at the Rs 1,250 strike on Reliance Industries Ltd amid a persistent downtrend and new 52-week lows points predominantly to bearish positioning or protective hedging. The strike’s ITM status and the stock’s trading below all major moving averages support this view.

While put writing as a bullish strategy cannot be entirely ruled out, the data does not strongly support it given the fresh volume and open interest dynamics. The declining delivery volumes and narrow price range further suggest that the market is cautious, with put buyers seeking to mitigate risk or capitalise on expected further weakness.

Investors and traders may find it useful to monitor whether the stock stabilises above key support levels or if put activity intensifies, signalling deeper downside. Should Reliance Industries Ltd be viewed as a stock to hedge or a candidate for further downside?

Key Data at a Glance

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