Put Option Activity Highlights
On 26 February 2026, Waaree Energies Ltd (underlying symbol: WAAREEENER) recorded the highest put option volumes at strike prices of ₹2,700 and ₹2,500, both expiring on 30 March 2026. The ₹2,700 strike saw 1,717 contracts traded, generating a turnover of ₹434.04 lakhs and an open interest of 2,198 contracts. Meanwhile, the ₹2,500 strike price had 1,577 contracts traded, with a turnover of ₹193.96 lakhs and an open interest of 1,611 contracts.
This concentrated activity in put options at these strike prices, which are below and near the current underlying value of ₹2,726, suggests investors are positioning for potential downside or are actively hedging existing long positions. The open interest figures indicate sustained interest and commitment to these bearish bets as expiry approaches.
Price and Technical Context
Despite the heavy put option activity, Waaree Energies’ stock price demonstrated resilience, touching an intraday high of ₹2,764.5 on the same day, marking a 2.07% gain. However, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a broader technical weakness. This divergence between price action and option market sentiment highlights the nuanced outlook among market participants.
Investor participation has notably increased, with delivery volumes surging to 28.51 lakh shares on 25 February, a remarkable 548.61% rise compared to the five-day average. This spike in delivery volume underscores heightened interest and possibly accumulation or distribution activity ahead of the expiry.
Liquidity remains robust, with the stock’s average traded value supporting trade sizes up to ₹23.56 crore, ensuring that option and stock market participants can execute sizeable trades without significant price impact.
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Mojo Score and Market Positioning
Waaree Energies holds a Mojo Score of 78.0, reflecting a strong buy recommendation, upgraded from a previous hold rating on 9 December 2025. This upgrade indicates improved fundamentals and positive outlook from MarketsMOJO’s analytical framework. Despite the bearish option positioning, the company’s mid-cap market capitalisation of ₹78,195.18 crore and a market cap grade of 2 suggest it remains a significant player within the Other Electrical Equipment sector.
The stock’s one-day return of 0.37% slightly underperformed the sector’s 0.80% gain but outpaced the Sensex’s 0.24% rise, indicating mixed but generally stable investor sentiment.
Expiry Patterns and Investor Sentiment
The expiry date of 30 March 2026 is attracting considerable attention, with put option volumes concentrated at strikes just below and near the current market price. This pattern often reflects hedging activity by institutional investors or traders anticipating volatility or a potential pullback. The elevated open interest at these strikes suggests that these positions are not merely speculative but are being held with conviction.
Such activity can also be interpreted as a protective measure against downside risk, especially given the stock’s trading below key moving averages. Investors may be seeking to limit losses in case of adverse market movements, particularly in a sector sensitive to regulatory and economic shifts.
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Implications for Investors and Traders
For investors, the heavy put option activity at ₹2,700 and ₹2,500 strikes serves as a cautionary signal. While the stock’s fundamentals and upgraded Mojo Grade support a positive long-term outlook, the near-term technical weakness and bearish option positioning suggest potential volatility or price corrections ahead.
Traders might view these put options as opportunities to capitalise on downside moves or to hedge existing long exposures. The liquidity and active participation in both the stock and options markets provide ample scope for strategic positioning.
It is also worth noting that the delivery volume spike indicates increased commitment from investors, which could either precede a consolidation phase or a directional move depending on broader market cues and sectoral developments.
Sector and Market Context
Waaree Energies operates within the Other Electrical Equipment sector, which has shown mixed performance recently. The sector’s 0.80% gain on the day outpaced Waaree’s 0.37% rise, reflecting some relative underperformance. This divergence may be influencing the cautious stance seen in the options market.
Given the company’s mid-cap status and sizeable market capitalisation, it remains a key stock to watch for investors seeking exposure to the electrical equipment space with a focus on growth and innovation.
Conclusion
In summary, Waaree Energies Ltd’s active put option trading ahead of the 30 March 2026 expiry highlights a complex market sentiment. While the company’s fundamentals and upgraded Mojo Grade favour a buy stance, the concentrated bearish positioning in options and technical indicators suggest investors should remain vigilant. Monitoring open interest trends, delivery volumes, and price action in the coming weeks will be crucial for making informed investment decisions.
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