Overview of Put Option Activity
Reliance Industries Ltd (NSE: RELIANCE), currently trading at ₹1,366, has emerged as the most active stock in put options on the derivatives market. Data from the latest trading sessions reveal substantial volumes and open interest in put contracts, particularly at strike prices ranging from ₹1,330 to ₹1,360. The most notable expiry dates are 28 April 2026 and 26 May 2026, with the former seeing the highest concentration of contracts traded.
On 28 April 2026 expiry, the ₹1,340 strike put option recorded 2,773 contracts traded, generating a turnover of approximately ₹9.29 lakhs and an open interest of 2,315 contracts. Similarly, the ₹1,350 strike saw 2,357 contracts traded with a turnover of ₹19.09 lakhs and open interest of 2,735. The ₹1,360 strike for the same expiry had 1,916 contracts traded, turnover of ₹43.21 lakhs, and open interest of 1,262 contracts.
For the 26 May 2026 expiry, the ₹1,360 strike put option recorded 1,460 contracts traded, with a turnover of ₹2.13 crores and open interest standing at 2,928 contracts. This indicates sustained interest in downside protection extending beyond the near-term expiry.
Implications of Strike Price Clustering Near Current Levels
The clustering of put option activity around strike prices close to the current underlying value of ₹1,366 suggests that market participants are positioning for potential downside or are actively hedging existing long exposures. The ₹1,330 to ₹1,360 range represents a critical support zone, and the elevated open interest at these strikes points to a significant number of investors seeking insurance against a decline below these levels.
Such positioning is often interpreted as a bearish or cautious signal, especially when combined with the stock’s recent price performance. Reliance Industries underperformed its sector by 0.41% on the day, trading within a narrow range of ₹10.7, and closing marginally lower by 0.01%. The stock remains above its 5-day and 20-day moving averages but below its longer-term 50-day, 100-day, and 200-day averages, indicating a mixed technical picture.
Open Interest and Turnover Reflect Elevated Hedging Demand
Open interest figures provide insight into the outstanding positions held by traders. The sizeable open interest in put options at key strikes, such as 2,928 contracts at ₹1,360 for May expiry and 2,735 contracts at ₹1,350 for April expiry, underscores a robust demand for downside protection. Turnover values, particularly the ₹2.13 crores recorded for the May ₹1,360 strike, highlight active trading and liquidity in these contracts.
Such activity is consistent with investors either hedging long stock positions or speculating on a potential price correction. The elevated delivery volume of 1.62 crore shares on 27 April, an 84.77% increase over the five-day average, further supports the notion of rising investor participation and possible repositioning ahead of key expiry dates.
Sector and Market Context
Reliance Industries operates within the oil sector, a segment currently facing mixed headwinds including fluctuating crude prices and regulatory uncertainties. The company’s large-cap status, with a market capitalisation of ₹18,48,477 crores, makes it a bellwether for the sector and broader market sentiment.
On the day in question, the oil sector posted a positive return of 0.42%, while the Sensex gained 0.12%. Reliance’s slight underperformance relative to its sector peers may be contributing to the cautious positioning observed in the options market.
Mojo Score and Analyst Sentiment
Reliance Industries currently holds a Mojo Score of 41.0, categorised as a Sell rating, a downgrade from its previous Hold grade as of 25 February 2026. This rating reflects a deterioration in the company’s fundamental and technical outlook, which may be influencing investor sentiment and the increased put option activity.
The downgrade signals that analysts and market participants are factoring in potential near-term challenges, reinforcing the rationale behind the elevated demand for protective put options.
Expiry Patterns and Investor Behaviour
The concentration of put option trades around the 28 April 2026 expiry suggests that investors are particularly focused on near-term risk management. The sizeable open interest and turnover at strikes just below the current market price indicate that traders are actively hedging against a possible pullback in the coming weeks.
Meanwhile, the sustained activity in the 26 May 2026 expiry contracts points to a longer-term cautious stance, with investors seeking protection or speculative opportunities over a one-month horizon. This dual expiry focus highlights a layered approach to risk management, balancing immediate concerns with medium-term outlooks.
Conclusion: Bearish Positioning Amid Mixed Technicals
The heavy put option activity in Reliance Industries Ltd underscores a growing bearish or defensive sentiment among investors. With strike prices clustered near current levels and significant open interest in near- and medium-term expiries, market participants appear to be hedging against potential downside risks or speculating on a price correction.
While the stock’s price action remains relatively stable within a narrow range, its underperformance relative to the sector and the downgrade in Mojo Grade to Sell suggest caution is warranted. Investors should closely monitor option market dynamics alongside technical indicators and sector developments to gauge evolving risk-reward profiles.
Given Reliance’s large-cap stature and central role in the oil sector, the options market activity provides valuable insight into broader market sentiment and potential near-term volatility.
