Put Option Activity Highlights
On 21 November 2025, Coforge recorded a significant volume of put option contracts, with 8,661 contracts traded at the 1800 strike price expiring on 25 November 2025. This volume corresponds to a turnover of approximately ₹607.35 lakhs, indicating substantial investor interest in downside protection or speculative bearish bets. The open interest for these puts stands at 1,240 contracts, suggesting that a considerable number of positions remain active as expiry approaches.
The underlying stock price at the time was ₹1,802.10, placing the 1800 strike price very close to the current market level. This proximity often attracts heightened options activity as traders seek to hedge against potential declines or capitalise on expected volatility near the strike price.
Price Performance and Market Context
Coforge’s stock performance on the day showed a decline of 2.37%, underperforming its sector, which fell by 0.46%, and the Sensex benchmark, which slipped 0.44%. The stock has been on a two-day losing streak, with cumulative returns of -3.44% over this period. Intraday, the share price touched a low of ₹1,792.50, down 2.9% from the previous close, reflecting increased selling pressure.
Despite this short-term weakness, the stock remains above its 20-day, 50-day, 100-day, and 200-day moving averages, though it trades below the 5-day moving average. This technical positioning suggests that while recent momentum has been negative, the longer-term trend retains some underlying strength.
Investor participation has shown signs of rising interest, with delivery volume on 20 November reaching 7.71 lakh shares, a 2.57% increase compared to the five-day average delivery volume. The stock’s liquidity supports trading sizes of up to ₹5.23 crore based on 2% of the five-day average traded value, facilitating active market engagement.
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Sector and Market Capitalisation Overview
Coforge operates within the Computers - Software & Consulting industry, a sector that has experienced mixed performance amid evolving technology trends and macroeconomic factors. The company’s market capitalisation stands at ₹60,832 crore, categorising it as a mid-cap stock with considerable market presence and investor attention.
The recent trading patterns in Coforge’s options market may reflect broader sector concerns, including potential headwinds in IT spending or profit-taking after recent gains. The put option activity, particularly at strike prices near the current market value, often signals hedging strategies by institutional investors or speculative positioning anticipating near-term price corrections.
Expiry Patterns and Investor Sentiment
The 25 November 2025 expiry date for the most active put options is imminent, which typically intensifies options market activity as traders adjust positions ahead of contract settlement. The concentration of put contracts at the 1800 strike price suggests a focal point for market participants assessing risk and reward in the near term.
Such activity can be interpreted as a cautious stance, with investors seeking to protect gains or limit downside exposure amid uncertain market conditions. Alternatively, it may indicate speculative bets on a potential price decline, especially given the stock’s recent underperformance relative to its sector and benchmark indices.
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Implications for Investors
For investors and traders, the heightened put option activity in Coforge offers insights into market sentiment and potential price trajectories. The volume and open interest data suggest that market participants are actively managing risk or positioning for possible downside moves in the short term.
Given the stock’s current trading range near key moving averages and the proximity of the put strike price to the underlying value, monitoring options market developments can provide valuable signals for portfolio adjustments. Investors may consider the balance between the stock’s longer-term technical support levels and the near-term bearish pressures indicated by options activity.
Conclusion
Coforge’s prominence in put options trading ahead of the 25 November expiry highlights a period of increased caution and strategic positioning among market participants. While the stock’s recent price action shows some softness, its standing above major moving averages points to underlying resilience. The interplay between these factors will be critical to watch as expiry approaches and investors reassess their outlooks in the Computers - Software & Consulting sector.
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