Put Option Activity Highlights
On 23 December 2025, Coforge recorded the most active put options with 3,517 contracts traded at the 1760 strike price, set to expire on 30 December 2025. The turnover for these contracts reached ₹256.13 lakhs, signalling substantial investor interest in downside protection or bearish positioning. Open interest stood at 883 contracts, indicating ongoing commitments in these put options beyond the trading day.
The underlying stock price at the time was ₹1792.90, placing the 1760 strike price slightly out-of-the-money. This positioning suggests that traders are hedging against potential declines or speculating on a near-term drop below this level before the expiry date.
Price Performance and Market Context
Coforge’s stock price underperformed its sector on the day, with a 4.25% decline compared to the sector’s 1.26% fall and the Sensex’s marginal 0.13% dip. The stock touched an intraday low of ₹1739.30, down 6.92% from previous levels, with heavier volume traded near this low price point. This price action indicates selling pressure and a shift in investor sentiment.
Technical indicators show that Coforge’s current price remains above its 100-day and 200-day moving averages, which often serve as long-term support levels. However, it trades below the 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term weakness. This mixed technical picture may be contributing to the increased put option activity as investors seek to manage risk.
Investor Participation and Liquidity
Delivery volume on 22 December was 4.62 lakh shares, representing a 19.24% reduction compared to the five-day average delivery volume. This decline in investor participation could reflect caution or profit-taking ahead of the year-end. Despite this, the stock remains sufficiently liquid, with a trade size capacity of approximately ₹4.2 crore based on 2% of the five-day average traded value, allowing for sizeable transactions without significant market impact.
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Sector and Market Capitalisation Overview
Coforge operates within the Computers - Software & Consulting industry, a sector that has experienced varied performance amid global economic uncertainties and evolving technology demands. The company’s market capitalisation stands at ₹62,455 crore, categorising it as a mid-cap stock. This size offers a balance between growth potential and market stability, attracting a diverse investor base.
Expiry Patterns and Investor Behaviour
The concentration of put option activity at the 30 December 2025 expiry date suggests that market participants are focusing on near-term risk management strategies. The choice of the 1760 strike price, close to the current trading level, indicates that investors are positioning for possible downside moves within the next week. Such activity often precedes periods of heightened volatility or reflects hedging against broader market or sector-specific headwinds.
Put options serve as a tool for investors to protect portfolios or speculate on declines without directly shorting the stock. The elevated turnover and open interest in Coforge’s puts highlight a notable degree of bearish sentiment or risk aversion among traders at this juncture.
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Implications for Investors
The current put option activity in Coforge offers insights into market expectations and risk management approaches. Investors should consider the broader context of the stock’s recent price movements, sector trends, and technical indicators when evaluating their positions.
While the stock remains above key long-term moving averages, the short-term weakness and increased put option interest suggest that caution is warranted. Market participants may be anticipating further volatility or downside risk in the near term, prompting protective strategies.
Given Coforge’s mid-cap status and sector dynamics, monitoring upcoming earnings, contract wins, and macroeconomic developments will be crucial for assessing future price direction. The expiry of the December put options may also act as a catalyst for price action, depending on how the stock trades relative to the 1760 strike price.
Conclusion
Coforge’s notable put option volume and turnover at the 1760 strike price expiring at the end of December 2025 underscore a market environment where investors are actively managing downside risk. The stock’s recent underperformance relative to its sector and the Sensex, combined with technical signals, supports the observed cautious positioning.
Investors and traders should remain attentive to evolving market conditions and option expiry developments as they navigate the complexities of Coforge’s stock performance in the coming days.
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