Wipro Ltd Sees Surge in Put Option Activity Amid Bearish Market Sentiment

Heavy Put Option Trading Highlights Bearish Positioning

On 17 March 2026, Wipro Ltd. (stock code 531139) emerged as the most active stock in put options trading, with 2,243 contracts exchanged at the ₹190 strike price for the expiry dated 30 March 2026. This activity generated a turnover of ₹394.32 lakhs, reflecting significant investor interest in downside protection or speculative bearish bets. The open interest at this strike stands at 1,749 contracts, indicating sustained commitment to these positions.

The underlying stock price hovered around ₹190.64, just above the ₹190 strike, underscoring the relevance of this strike price as a critical support level. The concentration of put option volume near this strike suggests that traders are positioning for a potential decline or are actively hedging existing long exposures.

Price Action and Technical Indicators Confirm Downtrend

Wipro’s stock price has been under pressure, hitting a fresh 52-week low of ₹188.25 on the day of reporting. The stock has underperformed its sector by 1.37% and the broader Sensex by a wider margin, with a 1-day return of -2.56% compared to the sector’s -1.67% and Sensex’s modest 0.17% gain. Over the past three consecutive trading sessions, Wipro has declined by 6.77%, signalling sustained selling pressure.

Technical analysis reveals that Wipro is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — reinforcing the bearish momentum. The weighted average price of traded volumes is closer to the day’s low, indicating that sellers dominated the session. Additionally, delivery volumes have dropped sharply by 51.84% compared to the 5-day average, suggesting waning investor participation and possibly increased short-term speculative activity.

Dividend Yield and Liquidity Considerations

Despite the bearish technical signals, Wipro continues to offer a relatively high dividend yield of 5.64% at current prices, which may provide some cushion for long-term investors. The stock remains liquid, with the ability to handle trade sizes up to ₹7.05 crores based on 2% of the 5-day average traded value, ensuring that option and stock traders can execute sizeable transactions without significant market impact.

Mojo Score and Analyst Ratings Reflect Deteriorating Outlook

Wipro’s current Mojo Score stands at 44.0, categorised as a Sell rating, a downgrade from its previous Hold grade as of 17 February 2026. This downgrade reflects deteriorating fundamentals and technical trends, signalling caution for investors. The company remains a large-cap heavyweight with a market capitalisation of ₹2,04,412 crores, but the recent negative momentum and bearish option activity suggest that investors are reassessing their positions.

Expiry Patterns and Implications for Investors

The expiry date of 30 March 2026 is attracting significant put option interest, which often precedes increased volatility in the underlying stock. The clustering of open interest and traded volumes at the ₹190 strike price indicates that this level is a focal point for market participants. Should the stock breach this level decisively, it could trigger further downside pressure, potentially accelerating the bearish trend.

Investors and traders should monitor the evolving open interest and volume patterns closely, as shifts in these metrics can provide early signals of changing market sentiment or hedging adjustments.

Sector and Market Context

Within the Computers - Software & Consulting sector, Wipro’s underperformance contrasts with the broader market’s modest gains, highlighting company-specific challenges. The sector itself has seen mixed performance, with some peers maintaining stronger technicals and fundamentals. This divergence may explain why investors are seeking alternative large-cap opportunities within the sector and beyond.

Investor Takeaway: Hedging and Caution Prevail

The surge in put option volumes at the ₹190 strike price, combined with Wipro’s technical weakness and downgrade to a Sell rating, suggests that investors are increasingly cautious. The stock’s recent three-day decline and fresh 52-week low reinforce the bearish outlook. While the attractive dividend yield may appeal to income-focused investors, the prevailing market sentiment and option market positioning indicate that downside risks remain significant in the near term.

Market participants should remain vigilant around the 30 March expiry, as option expiry dynamics could amplify price movements. Those holding long positions may consider protective strategies, while traders looking to capitalise on volatility should watch for shifts in open interest and volume concentration across strike prices.

Overall, Wipro’s current market signals point to a period of consolidation or further correction, with put option activity serving as a barometer of investor sentiment and risk management.

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