Reliance Industries Sees Surge in Put Option Activity Ahead of March Expiry

Put Option Volumes and Strike Price Concentration

Data from the options market reveals that Reliance Industries Ltd (stock code 605152) has attracted substantial put option interest, particularly at strike prices ranging from ₹1300 to ₹1410. The most actively traded put contract was at the ₹13,500 strike, with 10,104 contracts exchanged, generating a turnover of ₹725.47 lakhs and an open interest of 5,356 contracts. Close behind were the ₹1300 and ₹1360 strikes, with 8,894 and 7,786 contracts traded respectively, and open interest figures of 5,464 and 1,860 contracts.

The ₹1370 and ₹1410 strike puts also saw robust activity, with 7,998 and 7,634 contracts traded respectively. Turnover for these strikes stood at ₹771.41 lakhs and ₹1,233.65 lakhs, while open interest was 1,520 and 1,594 contracts. The underlying stock price at the time was ₹1,390, placing many of these strike prices near or slightly below the current market level, which is typical for protective put buying or speculative bearish bets.

Expiry Patterns and Market Implications

All these put options are set to expire on 30 March 2026, marking the end of the current monthly options cycle. The clustering of open interest and turnover around these strikes suggests that traders are positioning themselves for potential downside moves or are hedging existing long exposures. The elevated open interest at the ₹1300 and ₹1350 strikes, both significantly below the current price, may indicate a market expectation of a possible correction or increased volatility in the near term.

Reliance’s put option turnover exceeding ₹3,700 lakhs across these strikes underscores the scale of bearish sentiment or risk management activity. This is particularly notable given the stock’s recent performance, which has seen a modest 0.32% gain over the last two days but remains below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Such technical positioning often prompts investors to seek downside protection through puts.

Investor Sentiment and Technical Context

Reliance Industries currently holds a Mojo Score of 41.0 with a Mojo Grade of Sell, downgraded from Hold on 25 February 2026. This reflects a deteriorating outlook based on MarketsMOJO’s comprehensive analysis, which factors in fundamentals, price trends, and market sentiment. The stock’s large-cap status and ₹18,83,517 crore market capitalisation underscore its importance in the oil sector and the broader market.

Despite the slight positive return of 0.18% on the day, the stock underperformed the Sensex, which declined by 0.84%, and marginally outperformed the oil sector’s 0.16% loss. However, delivery volumes have fallen by 12.72% compared to the five-day average, signalling reduced investor participation. This decline in delivery volume, combined with the stock trading below all major moving averages, suggests a cautious stance among market participants.

Put Options as a Hedge and Bearish Indicator

The heavy put option activity at strike prices below the current market level is consistent with investors seeking downside protection or speculating on a price decline. The open interest concentration at ₹1300 and ₹1350 strikes, with over 5,000 contracts each, indicates significant hedging demand. Traders may be using these puts to guard against potential market corrections or sector-specific headwinds affecting the oil industry.

Moreover, the substantial turnover in put options at the ₹1410 strike, which is slightly above the current price, suggests some investors are betting on a near-term dip or increased volatility. This mixed positioning highlights a market environment where uncertainty prevails, and participants are actively managing risk through options strategies.

Outlook and Investor Takeaways

Given the current technical and options market signals, investors should approach Reliance Industries with caution. The downgrade to a Sell grade and the persistent bearish put option interest suggest that downside risks remain elevated in the near term. While the stock’s liquidity remains adequate for sizeable trades, with a 5-day average traded value supporting Rs 62.78 crore trade sizes, the falling delivery volumes and weak moving average positioning point to subdued investor confidence.

For investors holding long positions, the active put option market offers a means to hedge against potential declines, especially with expiry looming on 30 March 2026. Conversely, speculative traders may view the elevated put volumes as an opportunity to capitalise on expected volatility or downside moves. However, given the stock’s large-cap stature and sectoral importance, any significant price movement will likely be influenced by broader oil market dynamics and macroeconomic factors.

In summary, Reliance Industries’ options market activity reveals a cautious and somewhat bearish sentiment among investors, underscoring the need for careful risk management and close monitoring of price action as expiry approaches.

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