Put Option Activity Highlights
On 17 September 2026, Reliance Industries emerged as the most active stock in put options trading, with the 1240 strike price put contracts dominating volumes. A total of 4,578 contracts were traded, generating a turnover of ₹312.91 lakhs. Open interest at this strike stands at 4,619 contracts, indicating sustained interest in downside protection or speculative bearish bets.
The underlying stock price at close was ₹1,243, just ₹7 above the 1240 strike, underscoring the relevance of this strike price as a critical support level. The expiry date for these options is 29 September 2026, suggesting that traders are positioning themselves for potential downside moves within the next two weeks.
Technical and Price Context
Reliance Industries is currently trading close to its 52-week low, just 0.76% above the ₹1,235.3 mark. This proximity to a yearly low often triggers increased hedging activity as investors seek to protect long positions or speculate on further declines. Despite this, the stock has outperformed its sector by 0.43% today and has recorded a modest 0.77% gain over the past two consecutive sessions.
However, the stock remains below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a prevailing bearish trend. The narrow trading range of ₹0.6 on the day further reflects subdued volatility, which may precede a directional breakout or breakdown.
Investor Participation and Liquidity
Investor participation has shown signs of rising interest, with delivery volumes on 16 September reaching 65.5 lakh shares, a 2.32% increase over the five-day average. This uptick in delivery volume suggests that investors are either accumulating or liquidating positions with greater conviction amid the current price environment.
Liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes up to ₹29.41 crore based on 2% of the five-day average traded value. This liquidity facilitates active options trading and allows institutional players to execute sizeable hedging strategies efficiently.
Mojo Score and Analyst Ratings
Reliance Industries currently holds a Mojo Score of 41.0, categorised as a Sell rating, a downgrade from its previous Hold status as of 11 May 2026. This rating reflects deteriorating fundamentals or technical outlooks, reinforcing the bearish sentiment evident in the options market. The company remains a large-cap stalwart with a market capitalisation of ₹16,84,801 crore, but recent trends suggest caution among investors.
Implications of Put Option Interest
The heavy put option activity at the 1240 strike price indicates that market participants are either hedging existing long positions or speculating on a decline below this level. Given the stock’s current trading just above this strike, a breach could trigger further downside momentum, potentially accelerating selling pressure.
Put options serve as insurance against price falls, and the elevated open interest suggests that a significant number of investors are preparing for downside risk. This is consistent with the stock’s technical positioning below all major moving averages and its proximity to the 52-week low.
Sector and Market Comparison
While Reliance Industries has outperformed the oil sector by 0.43% today, the sector itself has been under pressure, with a 1-day return of -0.07%. The broader Sensex index gained 0.22%, indicating that Reliance’s relative strength is modest but not sufficient to offset the bearish undertones in its options market.
Investors should weigh these factors carefully, considering the stock’s large-cap status and strategic importance in the oil sector against the evident technical weakness and bearish positioning.
Expiry Patterns and Future Outlook
The 29 September 2026 expiry date for the active put options is critical. As this date approaches, the stock’s price action around the 1240 strike will be closely monitored by traders and investors alike. A sustained move below this level could validate the bearish bets and prompt further downside, while a rebound could see put option interest diminish as hedges are unwound.
Given the current Mojo Grade downgrade and technical indicators, the near-term outlook remains cautious. Investors may consider protective strategies or await clearer signals before increasing exposure.
Conclusion
Reliance Industries Ltd is currently navigating a challenging technical landscape, with significant put option activity signalling heightened bearish sentiment and hedging demand. The concentration of put contracts at the 1240 strike price ahead of the 29 September expiry highlights investor concerns about downside risk. While the stock has shown some resilience with recent gains and outperformance relative to its sector, its position below key moving averages and proximity to a 52-week low warrant a cautious approach.
Market participants should monitor open interest trends and price action closely in the coming days to gauge whether this bearish positioning will translate into a sustained downtrend or if the stock can stabilise and recover. The current Mojo Score downgrade to Sell further emphasises the need for prudence in managing exposure to this large-cap oil sector leader.
