Rs 1,300 Puts Draw 4,488 Contracts on Reliance Industries Ltd as Stock Trades Below Key Moving Averages

Put Options Event and Cash Market Context

On 13 Apr 2026, Reliance Industries Ltd saw heavy put option activity concentrated around the Rs 1,300 strike for the 28 Apr 2026 expiry. The 4,488 contracts traded at this strike represent the largest single strike volume among puts, with a turnover of approximately ₹409.3 lakhs. Other notable strikes included Rs 1,320 (3,093 contracts) and Rs 1,310 (2,111 contracts), indicating broad interest in put options slightly below and near the current price of Rs 1,314.80.

The stock itself opened with a gap down of 2.15%% and touched an intraday low of Rs 1,311, closing with a 2.47%% loss. This decline was in line with the Oil sector's fall of 2.56%% and the broader Sensex's 1.76%% drop. Importantly, Reliance Industries Ltd is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a bearish technical setup. Is this put activity a reflection of growing bearish conviction or a strategic hedge against further downside?

Strike Price Analysis: Moneyness and Intent

The Rs 1,300 put strike sits approximately 1.1%% out-of-the-money (OTM) relative to the current stock price of Rs 1,314.80. The Rs 1,310 and Rs 1,320 strikes are near-the-money (NTM) and slightly in-the-money (ITM) respectively, given the underlying price. The concentration of contracts at these strikes suggests that market participants are positioning around a price range just below or near the current level.

OTM puts, such as those at Rs 1,300, are often purchased as protective hedges by investors holding long stock positions, especially when the underlying is in a downtrend but not collapsing. Conversely, ITM and ATM puts can indicate directional bearish bets, as buyers pay higher premiums expecting a further decline. However, the presence of significant open interest at Rs 1,300 (8,713 contracts) compared to the traded volume (4,488 contracts) suggests a mix of fresh buying and existing positions being adjusted.

Given the proximity of these strikes to the current price and the expiry date less than three weeks away, the put activity likely reflects a combination of protective hedging and cautious bearish positioning rather than outright speculative short bets. Could this be a tactical move to guard against a pullback to key support levels?

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

Put option activity can be ambiguous. The Rs 1,300 strike puts are OTM but close to the current price, and the stock is in a downtrend, which could suggest bearish positioning. However, the sizeable open interest and turnover at this strike also align with hedging behaviour, where long holders seek protection against further declines without necessarily expecting a sharp fall.

Put writing, or selling puts to collect premium, is less likely here given the high turnover and open interest on the buy side. Put writers typically prefer strikes further OTM to benefit from time decay, and the current premium levels at Rs 1,300 are relatively elevated due to recent volatility. The data thus leans more towards protective hedging and cautious bearish bets rather than bullish put selling.

Moreover, the stock's position below all major moving averages supports the view that investors are wary of further downside risk. Yet, the absence of a sharp spike in put open interest relative to traded contracts suggests that fresh bearish bets are being balanced by hedging activity. Is this a sign of investors bracing for a technical correction rather than a fundamental breakdown?

Open Interest and Contracts Analysis

The Rs 1,300 strike shows an open interest of 8,713 contracts, which is nearly double the day's traded volume of 4,488 contracts. This ratio indicates that a significant portion of the activity is fresh, but also that many positions are being carried over from previous sessions. The Rs 1,320 and Rs 1,310 strikes have open interest levels of 2,756 and 2,682 contracts respectively, with traded volumes of 3,093 and 2,111 contracts, suggesting active repositioning around these strikes.

Such a pattern is consistent with a market where investors are adjusting hedges and possibly rolling positions closer to the money as expiry approaches. The relatively balanced open interest and volume ratios imply neither a panic sell-off nor a complacent market, but rather a measured approach to risk management.

Cash Market Technical Context

Reliance Industries Ltd is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, a bearish technical configuration that often signals downward momentum. The stock's 1-day return of -2.66%% outpaces the sector's decline of -2.61%% and the Sensex's -1.76%%, indicating relative weakness.

Delivery volumes have risen slightly by 1.01%% against the 5-day average, reaching 1.16 crore shares on 10 Apr, which suggests that the recent decline is accompanied by genuine investor participation rather than purely speculative moves. This delivery-backed selling pressure may be the catalyst for the increased put activity, as investors seek downside protection.

Conclusion: Protective Hedging Amid Bearish Technicals

The heavy put option activity at the Rs 1,300 strike on Reliance Industries Ltd reflects a market balancing act. While the stock's decline and position below all major moving averages point to bearish technical momentum, the strike price proximity and open interest patterns suggest that much of the put buying is likely protective hedging by existing long holders rather than outright bearish speculation.

Put writing appears limited, and the data does not support a strong conviction of a sharp downside move. Instead, investors seem to be managing risk in a volatile environment, possibly bracing for a technical correction or consolidation phase. With puts active and calls active on the same stock, buy, sell, or hold Reliance Industries Ltd? The full analysis cuts through the options noise.

Key Data at a Glance

Limited Period Only. Get Started for only Rs. 16,999 - Get MojoOne for 2 Years + 1 Year Absolutely FREE! (72% Off) Get 72% Off →

Options trading involves risk and is not suitable for all investors. Please consider your investment objectives and risk tolerance before engaging in options transactions.