Reliance Industries Sees Heavy Put Option Activity Amid Mixed Market Signals

Put Option Activity Highlights

Data from the options market reveals that Reliance Industries Ltd (NSE: RELIANCE) has emerged as the most active stock in put options trading, with significant volumes concentrated on contracts expiring on 24 February 2026. The underlying stock closed at ₹1,436 on 3 February 2026, while the most traded put strikes ranged from ₹1,380 to ₹1,450, indicating a cluster of bearish bets around and slightly below the current price.

The highest number of contracts traded was at the ₹1,400 strike, with 8,015 contracts changing hands, generating a turnover of ₹342.64 lakhs and an open interest of 5,529 contracts. This was closely followed by the ₹1,380 strike, which saw 4,255 contracts traded with an open interest of 3,492. Other notable strikes included ₹1,420 (3,935 contracts), ₹1,450 (3,113 contracts), and ₹1,440 (3,404 contracts), cumulatively reflecting a robust put option market.

Interpreting the Bearish Positioning

The concentration of put option activity at strikes slightly below the current market price suggests that traders are positioning for a potential downside or are hedging existing long exposures. The open interest figures, particularly at ₹1,400 and ₹1,380 strikes, indicate that these levels are key support zones where investors expect the stock might test or breach in the near term.

Such elevated put buying can also be interpreted as a protective strategy amid recent volatility. Reliance Industries has outperformed its sector by 1.23% today and has gained 6.94% over the last two days, including a gap-up opening of 6.01%. However, the weighted average price of traded volumes was closer to the day’s low, signalling some selling pressure despite the gains.

Stock Performance and Technical Context

Reliance Industries’ intraday high touched ₹1,489.5, a 7.13% rise, yet the stock remains below its 20-day, 50-day, 100-day, and 200-day moving averages, though it is trading above the 5-day average. This mixed technical picture may be contributing to the cautious stance among options traders, who appear to be balancing optimism with prudent risk management.

The oil exploration and refinery sector has gained 2.51% today, with Reliance’s 3.42% one-day return outperforming both the sector and the Sensex, which rose 2.37% and 2.56% respectively. Despite this relative strength, falling investor participation, as evidenced by an 8.54% decline in delivery volume compared to the five-day average, suggests some hesitation among long-term holders.

Mojo Score and Analyst Ratings

Reliance Industries currently holds a Mojo Score of 52.0, placing it in the 'Hold' category, a downgrade from its previous 'Buy' rating as of 6 January 2026. The company’s market capitalisation stands at a substantial ₹19,45,969.03 crores, reflecting its large-cap status and dominant position in the oil sector.

The downgrade in Mojo Grade suggests a more cautious outlook from analysts, likely influenced by the mixed technical signals and the increased put option activity signalling potential downside risks. Investors should weigh these factors carefully when considering fresh positions or portfolio adjustments.

Expiry Patterns and Market Implications

The expiry date of 24 February 2026 is attracting significant attention, with put option volumes concentrated in the near-the-money strikes. This pattern often indicates that traders are either hedging against short-term corrections or speculating on a pullback before the monthly expiry.

Open interest accumulation at these strikes also points to the possibility of price support or resistance levels being tested in the coming weeks. Market participants should monitor price action closely around ₹1,400 and ₹1,380, as breaches below these levels could trigger further downside momentum.

Sector and Market Context

The oil sector’s recent gains have been supported by improving global energy demand and supply-side adjustments. However, geopolitical uncertainties and fluctuating crude prices continue to inject volatility. Reliance Industries, as a key player in oil exploration and refining, remains sensitive to these macro factors, which may explain the hedging activity observed in the options market.

Additionally, the stock’s liquidity remains robust, with a trade size capacity of approximately ₹40.32 crores based on 2% of the five-day average traded value, ensuring that investors can execute sizeable trades without significant market impact.

Investor Takeaways and Outlook

While Reliance Industries has demonstrated resilience with recent gains and sector outperformance, the surge in put option activity highlights a growing caution among market participants. The concentration of puts at strikes near the current price suggests that investors are either hedging against potential downside or speculating on a near-term correction.

Given the stock’s position below key longer-term moving averages and the falling delivery volumes, the risk of a pullback cannot be discounted. Investors should consider these factors alongside the company’s fundamental strengths and sector dynamics before making investment decisions.

For traders, monitoring open interest changes and price action around the ₹1,400 and ₹1,380 levels will be crucial in gauging the next directional move. Meanwhile, the downgrade in Mojo Grade to 'Hold' reinforces the need for prudence in portfolio allocation.

Conclusion

Reliance Industries Ltd’s options market activity provides valuable insight into investor sentiment, revealing a nuanced balance between optimism and caution. The heavy put option volumes ahead of the 24 February expiry underscore the importance of risk management in a volatile environment. As the stock navigates technical resistance and support levels, market participants should remain vigilant and consider hedging strategies to protect capital.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →