SRF Ltd Sees Heavy Put Option Activity Amid Bearish Market Sentiment

Intense Put Option Trading Highlights Bearish Positioning

Data from the options market reveals that SRF Ltd. has emerged as one of the most actively traded stocks in put options this week. The highest volume was recorded at the ₹2700 strike price, with 12,213 contracts traded, generating a turnover of ₹820.71 lakhs and an open interest of 2,993 contracts. This was closely followed by the ₹2800 strike, which saw 6,062 contracts traded, turnover of ₹909.42 lakhs, and an open interest of 1,369 contracts. The ₹2750 strike also attracted substantial activity with 4,603 contracts traded and turnover of ₹471.81 lakhs.

The underlying stock price currently stands at ₹2778.5, placing the ₹2700 and ₹2750 strikes slightly out-of-the-money, while the ₹2800 strike is just above the current market price. This concentration of put option activity near the money suggests investors are positioning for potential downside or seeking protection against further declines.

SRF’s Recent Price Performance and Technical Weakness

SRF Ltd. has been under pressure in recent sessions, underperforming its sector by 3.73% on the day of 21 January 2026 and falling 3.44% compared to the sector’s 0.81% decline. The stock has recorded a consecutive six-day losing streak, shedding 9.34% over this period. It opened sharply lower by 2.8% on 21 January and touched an intraday low of ₹2730.1, down 5.31% from the previous close.

Technical indicators reinforce the bearish outlook. SRF is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. The weighted average price for the day was closer to the intraday low, indicating selling pressure dominated the session.

Investor participation has also risen, with delivery volumes on 20 January reaching 2.65 lakh shares, a 56.39% increase over the five-day average. This heightened activity suggests that investors are either liquidating positions or hedging existing exposure amid uncertainty.

Mojo Score Downgrade Reflects Deteriorating Fundamentals

SRF Ltd.’s MarketsMOJO score currently stands at 48.0, categorised as a Sell rating, reflecting a downgrade from a previous Hold grade on 19 January 2026. The downgrade is indicative of weakening fundamentals and technicals, which have deteriorated in recent weeks. The company’s market capitalisation is ₹82,521.71 crores, placing it in the mid-cap segment, but its market cap grade is a low 2, signalling limited strength relative to peers.

Investors should note that the downgrade and bearish technical signals coincide with the surge in put option activity, suggesting that market participants are increasingly cautious about SRF’s near-term prospects.

Expiry Patterns and Implications for Investors

The expiry date of 27 January 2026 is approaching rapidly, and the concentration of put options at strikes near the current price indicates that traders are either hedging existing long positions or speculating on further downside. Open interest figures show that the ₹2700 strike has the highest outstanding contracts, which could act as a significant support level or a focal point for price action around expiry.

Given the stock’s recent volatility and technical weakness, investors holding SRF shares should consider the implications of this options activity. The elevated put volumes and turnover suggest a risk-off stance, which may translate into increased volatility in the coming days.

Sector and Market Context

SRF Ltd. operates within the Specialty Chemicals sector, which has seen mixed performance recently. On 21 January 2026, the sector declined by 0.81%, while the broader Sensex index was relatively flat, down just 0.08%. SRF’s sharper decline relative to its sector peers highlights company-specific challenges or investor concerns.

Liquidity remains adequate for trading, with the stock’s average traded value supporting trade sizes up to ₹2.29 crores based on 2% of the five-day average. This ensures that investors can enter or exit positions without significant market impact, even amid heightened volatility.

Investor Takeaway: Caution Advised Amid Bearish Signals

With SRF Ltd. showing sustained weakness across multiple technical indicators and a downgrade in its Mojo rating, the surge in put option activity underscores a cautious market stance. Investors should closely monitor price action around the ₹2700 to ₹2800 levels, as these strikes have attracted the most put interest and could influence near-term support and resistance.

Those holding long positions may consider protective strategies such as buying puts or tightening stop-loss levels to mitigate downside risk. Conversely, traders with a bearish outlook might find opportunities in the elevated volatility and option premiums ahead of expiry.

Overall, the combination of deteriorating fundamentals, technical weakness, and heavy put option volumes suggests that SRF Ltd. faces near-term headwinds. Market participants should weigh these factors carefully in their portfolio decisions.

Summary of Key Metrics for SRF Ltd. (as of 21 Jan 2026)

• Underlying Price: ₹2778.5


• Most Active Put Strikes: ₹2700 (12,213 contracts), ₹2800 (6,062 contracts), ₹2750 (4,603 contracts)


• Open Interest at ₹2700 Strike: 2,993 contracts


• Mojo Score: 48.0 (Sell, downgraded from Hold on 19 Jan 2026)


• Market Cap: ₹82,521.71 crores (Mid Cap)


• Day Change: -3.88%


• Consecutive Fall: 6 days, -9.34% cumulative decline


• Trading below all major moving averages

Investors should remain vigilant as expiry approaches and consider the implications of the pronounced bearish positioning reflected in the options market.

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