Concentrated Put Option Volumes Signal Bearish Positioning
On 27 April 2026, Reliance Industries Ltd (NSE: RELIANCE) recorded significant put option activity, with the highest number of contracts traded clustered around strike prices of ₹1,320, ₹1,310, ₹1,300, and ₹1,330. The most active strike was ₹1,320, where 10,927 contracts changed hands, generating a turnover of approximately ₹361.14 lakhs. This was closely followed by the ₹1,300 strike, which saw 9,997 contracts traded with a turnover of ₹87.97 lakhs.
The open interest figures further underscore the bearish sentiment, with the ₹1,300 strike commanding the largest open interest of 11,235 contracts, indicating that a substantial number of investors are either hedging downside risk or speculating on a decline below this level. The ₹1,310 strike also showed robust open interest at 3,960 contracts, while the ₹1,320 and ₹1,330 strikes had open interest of 5,730 and 2,497 contracts respectively.
Expiry Patterns and Market Context
All these put options are set to expire on 28 April 2026, just one day after the data snapshot, suggesting that traders are positioning for near-term downside or protection against volatility around this expiry. The underlying stock price at the time was ₹1,325.40, hovering just above the ₹1,320 and ₹1,310 strikes, which are now acting as key psychological and technical support levels.
Reliance Industries is currently trading close to its 52-week low, just 2.8% above the ₹1,290 mark, which adds to the cautious mood. The stock has recently gained after two consecutive days of decline, but remains below all major moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downtrend. This technical backdrop likely explains the surge in put option interest as investors seek downside protection or speculate on further weakness.
Comparative Performance and Sector Dynamics
On the day in question, Reliance Industries posted a marginal decline of 0.17%, underperforming the oil sector which gained 0.56%, and the broader Sensex which rose 0.59%. This relative weakness in a large-cap oil stock is notable given the sector’s overall resilience, and may be contributing to the increased hedging activity observed in the options market.
Investor participation appears to be waning slightly, with delivery volumes on 24 April falling by 1.39% compared to the five-day average, despite the stock’s liquidity remaining adequate for sizeable trades up to ₹45.29 crores. This combination of lower participation and heavy put buying suggests a more defensive stance among market participants.
Mojo Score and Analyst Sentiment
Reliance Industries currently holds a Mojo Score of 41.0, categorised as a Sell rating, having been downgraded from Hold on 25 February 2026. This downgrade reflects deteriorating fundamentals or technical outlooks as assessed by MarketsMOJO, reinforcing the bearish tone evident in the options market. The large-cap oil giant’s market capitalisation stands at a robust ₹18,01,248 crores, but the current sentiment indicates caution among investors despite its size and sector leadership.
Implications for Investors and Traders
The heavy put option activity clustered around strike prices slightly below the current market level suggests that investors are either hedging existing long positions or speculating on a near-term decline in Reliance Industries’ share price. The concentration of open interest at ₹1,300 and ₹1,320 strikes points to these levels as critical support zones to watch in the coming sessions.
Given the stock’s proximity to its 52-week low and its position below key moving averages, traders should be alert to potential volatility around the expiry date. The options data implies that downside risk is being actively managed or anticipated, which could translate into increased price swings or a test of lower support levels.
Outlook and Strategic Considerations
While the recent price action shows some recovery after a brief decline, the overall technical and options market signals remain cautious. Investors with exposure to Reliance Industries may consider reviewing their risk management strategies, particularly in light of the Sell rating and the sizeable put option interest indicating bearish sentiment.
For traders, the expiry on 28 April 2026 represents a key event, with the potential for heightened volatility as positions are squared off or rolled forward. Monitoring open interest changes and strike price concentrations in the days following expiry will be crucial to gauge evolving market expectations.
Conclusion
Reliance Industries Ltd’s prominence as the most active stock in put options trading ahead of the 28 April expiry highlights a significant shift towards defensive positioning and bearish outlooks among investors. The clustering of put contracts at strikes just below the current price, combined with technical weakness and a recent downgrade, paints a picture of caution in one of India’s largest oil sector companies. Market participants should remain vigilant to price movements around critical support levels and expiry dates as the stock navigates this challenging phase.
