Put Option Activity Highlights
On 24 December 2025, Coforge's put options with a strike price of Rs 1700 emerged as the most actively traded contracts. A total of 5,614 contracts exchanged hands, generating a turnover of approximately Rs 262.31 lakhs. The open interest for these puts stands at 3,101 contracts, indicating sustained investor interest in downside protection or speculative bearish bets as the expiry date approaches.
The underlying stock price at the time was Rs 1,759.3, placing the 1700 strike price slightly out-of-the-money. This positioning suggests that market participants are preparing for potential declines or volatility in the near term, as the stock price hovers just above this key level.
Recent Price Performance and Market Context
Coforge has underperformed its sector on the day, with a 1.08% decline compared to the sector's marginal 0.14% fall. The stock has recorded a consecutive two-day decline, accumulating a 5.91% loss over this period. Intraday, the stock touched a low of Rs 1,740.1, reflecting a 2.25% drop from previous levels.
Despite these short-term setbacks, Coforge's price remains above its 200-day moving average, a long-term technical indicator often associated with underlying strength. However, it trades below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling recent weakness and potential resistance levels that may challenge upward momentum.
Investor Participation and Liquidity Considerations
Investor engagement has shown notable signs of rising interest. Delivery volume on 23 December surged to 15.56 lakh shares, marking a 153.46% increase compared to the five-day average delivery volume. This heightened participation suggests that investors are actively adjusting their positions amid the evolving market dynamics.
Liquidity metrics further support the stock's tradability, with the average traded value over five days enabling trade sizes up to Rs 6.37 crore without significant market impact. Such liquidity is crucial for options traders and institutional investors seeking to execute sizeable hedging or speculative strategies efficiently.
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Implications of Put Option Concentration
The concentration of put option activity at the 1700 strike price ahead of the 30 December expiry suggests a strategic focus on downside risk management. Investors may be employing these puts as a hedge against further price declines or as a speculative instrument anticipating a correction below this level.
Open interest figures reinforce this view, as the accumulation of outstanding contracts indicates that traders are maintaining or building bearish positions rather than closing them out. This behaviour often precedes increased volatility or directional moves in the underlying stock.
Sector and Market Comparison
Within the Computers - Software & Consulting sector, Coforge's recent performance contrasts with the broader market's modest movements. The Sensex recorded a 0.18% gain on the day, while the sector and Coforge both experienced declines, highlighting stock-specific pressures or sentiment factors influencing Coforge's price action.
Given Coforge's market capitalisation of approximately Rs 58,632 crore, it is classified as a mid-cap stock. This size category often experiences more pronounced price swings compared to large-cap peers, which may explain the active options trading as investors seek to manage risk or capitalise on anticipated price shifts.
Technical Indicators and Moving Averages
Technical analysis reveals a mixed picture for Coforge. The stock's position above the 200-day moving average suggests a degree of long-term support. However, trading below shorter-term moving averages such as the 5-day, 20-day, 50-day, and 100-day averages indicates recent downward momentum and potential resistance zones that could limit near-term recovery.
Such technical signals often influence options market behaviour, as traders align their strategies with anticipated price trends and volatility expectations.
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Outlook and Investor Considerations
Investors monitoring Coforge should consider the implications of the active put option market alongside the stock’s recent price trends and technical indicators. The elevated put open interest and turnover at the 1700 strike price suggest that market participants are positioning for potential downside or volatility in the near term.
While the stock remains above a key long-term moving average, the short-term technical weakness and consecutive days of price decline warrant cautious observation. The rising delivery volumes indicate increased investor engagement, which could lead to sharper price movements as the expiry date approaches.
Given the stock’s liquidity profile, market participants can execute sizeable trades with relative ease, supporting active hedging and speculative strategies in the options market.
Summary
Coforge Ltd’s options market activity ahead of the 30 December 2025 expiry highlights a notable focus on downside protection and bearish positioning. The 1700 strike price put options have attracted significant trading volume and open interest, reflecting investor caution amid recent price declines and sector underperformance.
Technical indicators present a mixed outlook, with long-term support contrasted by short-term resistance and downward momentum. Rising investor participation and adequate liquidity further shape the trading environment, making Coforge a stock to watch closely in the coming sessions.
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