ONGC Options Market Points to Growing Bearish Sentiment

Oil & Natural Gas Corporation Ltd. (ONGC) has seen a significant surge in put option trading at the ₹245 strike price, just above its current market price of ₹242.61. On July 27, 2026, a total of 2,705 contracts changed hands, generating a turnover of ₹87.03 lakhs. This concentration of activity suggests that traders are positioning for a potential drop below this level in the near term.

The stock has underperformed its sector by 2.22% on the day, closing with a 2.44% loss compared to a marginal 0.06% gain in the oil sector index. Over the past two trading sessions, ONGC's stock has declined by 3.35%, signaling a short-term downtrend.

The recent drop in delivery volume by 36.83% compared to the five-day average suggests waning investor participation, which could exacerbate volatility. The heavy put option activity at the ₹245 strike price is indicative of investors seeking downside protection or expressing bearish views, with institutional investors often using options to hedge sizeable equity exposures.

Market participants should remain vigilant to price movements around this critical level as expiry approaches on July 28, 2026. A breach below ₹245 could trigger further downside pressure, potentially validating the bearish sentiment embedded in the options market.