Reliance Industries Sees Heavy Put Option Activity Amid Mixed Technical Signals

Put Option Activity Highlights

Data from the options market reveals that Reliance Industries Ltd (NSE: RELIANCE) recorded the highest put option volumes among all stocks, with 3,072 contracts traded at the ₹1450 strike price and 4,020 contracts at the ₹1400 strike price, both expiring on 24 February 2026. The turnover for the ₹1450 strike stood at ₹333.312 lakhs, while the ₹1400 strike saw ₹140.901 lakhs in turnover. Open interest figures further underscore the concentration of bearish bets, with 2,897 contracts open at ₹1450 and a substantial 6,500 contracts at ₹1400.

The underlying stock price at the time of this activity was ₹1,458.5, placing the ₹1450 strike just below the current market price and the ₹1400 strike further out-of-the-money. This clustering of put options suggests investors are either hedging existing long positions or speculating on a potential downside correction in the near term.

Stock Performance and Technical Context

Reliance Industries has been on a steady upward trajectory, gaining 8.23% over the last three trading sessions. The stock’s price currently trades above its 5-day, 20-day, and 200-day moving averages, indicating short- and long-term bullish momentum. However, it remains below the 50-day and 100-day moving averages, which may be interpreted as resistance levels that could cap further gains in the near term.

Investor participation has also risen notably, with delivery volumes on 3 February reaching 1.59 crore shares, a 41.91% increase compared to the five-day average. This heightened activity reflects growing interest and possibly increased hedging demand as the stock approaches key technical thresholds.

Liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes up to ₹48.9 crore based on 2% of the five-day average traded value. This liquidity profile facilitates active options trading and allows institutional investors to implement complex hedging strategies efficiently.

Mojo Score and Analyst Ratings

Reliance Industries currently holds a Mojo Score of 62.0, categorised as a 'Hold' rating by MarketsMOJO, reflecting a cautious stance after a recent downgrade from 'Buy' on 6 January 2026. The downgrade signals tempered expectations amid mixed technical signals and the evolving macroeconomic environment impacting the oil sector.

The company’s market capitalisation stands at a commanding ₹19,74,251.89 crore, firmly placing it in the large-cap category with a Market Cap Grade of 1. This scale provides the stock with inherent stability, yet the recent shift in analyst sentiment suggests investors should monitor developments closely.

Sector and Market Comparison

On 4 February 2026, Reliance Industries posted a daily gain of 1.52%, slightly underperforming the oil sector’s 1.68% rise but outperforming the broader Sensex index, which advanced by 0.23%. This relative performance indicates that while the stock is aligned with sector trends, it faces competitive pressures and market headwinds that may limit upside potential.

The oil sector itself remains sensitive to global energy price fluctuations, regulatory changes, and geopolitical risks, all of which contribute to the cautious positioning observed in the options market.

Expiry Patterns and Investor Sentiment

The concentration of put option activity around the 24 February 2026 expiry date is noteworthy. This expiry is less than three weeks away, suggesting that investors are positioning for potential near-term volatility or downside risk. The heavy open interest at the ₹1400 strike price, which is approximately 4% below the current market price, indicates a significant level of protection or speculative bearishness.

Such positioning may be driven by concerns over upcoming earnings announcements, macroeconomic data releases, or sector-specific developments that could impact Reliance’s stock price. Alternatively, it may reflect a strategic hedge against broader market corrections given the stock’s recent run-up.

Implications for Investors

For investors holding long positions in Reliance Industries, the elevated put option volumes and open interest at strikes below the current price serve as a cautionary signal. These options can act as insurance against a price decline, but they also highlight market participants’ expectations of potential downside risk.

Conversely, traders with a bearish outlook may view the current option activity as an opportunity to capitalise on anticipated volatility or a pullback. The liquidity and active trading in these strikes provide ample scope for tactical positioning.

Given the mixed technical signals and the recent downgrade to a 'Hold' rating, investors should carefully weigh the risks and rewards, considering both the stock’s strong fundamentals and the possibility of short-term corrections.

Conclusion

Reliance Industries Ltd’s prominence in put option trading highlights a nuanced market outlook. While the stock has demonstrated resilience and upward momentum recently, the surge in bearish options activity suggests investors are hedging against potential near-term risks. The expiry concentration and strike price clustering point to a cautious sentiment that investors should consider when managing their portfolios.

With a Mojo Grade now at 'Hold' and a sizeable market capitalisation, Reliance remains a key player in the oil sector, but the evolving technical and options landscape calls for vigilant monitoring. Investors are advised to balance the stock’s fundamental strengths against the signals emanating from the derivatives market to make informed decisions.

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