Info Edge Declines 9.65% Amid Mixed Option Activity and Sector Headwinds

2 February: Intraday Low Amid Price Pressure and Divergent Option Activity

Info Edge opened the week under pressure, closing at Rs. 1,237.05, down 0.98% on the day. The stock hit an intraday low of Rs. 1,213.8, reflecting a 3.23% drop amid immediate selling pressure despite the Sensex falling 1.03%. This underperformance was notable given the broader market's mixed performance and the e-retail sector's challenges.

On the same day, the derivatives market showed contrasting signals with heavy call option activity at the ₹1,260 strike price, where 3,297 contracts were traded generating a turnover of ₹5.13 crores. This suggested some bullish positioning ahead of the 24 February expiry. However, put options at the same strike saw even higher activity with 3,337 contracts traded and a turnover of ₹6 crores, indicating significant bearish hedging or speculative bets. The open interest in puts and calls remained elevated, reflecting uncertainty and a tug-of-war between bulls and bears.

Technically, the stock traded below all key moving averages, signalling sustained downward momentum. Delivery volumes surged, with a 140.43% increase over the five-day average, hinting at accumulation by some investors despite the price weakness.

4 February: Sharp Open Interest Surge and Intraday Volatility Near 52-Week Low

The stock continued its downward trajectory on 4 February, closing at Rs. 1,166.20, down 1.77%. It touched an intraday low of Rs. 1,184.55, a 5.27% drop from the previous close, accompanied by significant intraday volatility of 23.22%. This decline outpaced the IT software sector's 3.51% fall and the Sensex's modest 0.14% gain, underscoring company-specific pressures.

Derivatives activity intensified with a 14.25% surge in open interest to 40,025 contracts, alongside a futures volume of 31,523 contracts and a combined futures and options traded value exceeding ₹371 crores. The stock’s weighted average price skewed towards the lower end of the day’s range, indicating dominant selling pressure. Despite this, delivery volumes increased by nearly 30%, suggesting selective accumulation amid volatility.

Info Edge remained below all major moving averages, reinforcing the bearish technical outlook. The stock was trading just 2.52% above its 52-week low, signalling proximity to critical support levels.

6 February: New 52-Week Low Amid Continued Market and Sector Pressure

Info Edge’s share price fell further on 6 February, closing at Rs. 1,128.75, down 3.21% on the day and marking a fresh 52-week low intraday of Rs. 1,127.95. This represented a cumulative loss of 9.67% over the prior three sessions. The decline occurred despite the Sensex’s modest 0.10% gain, highlighting the stock’s relative weakness.

The IT software sector declined 2.13%, adding to the headwinds faced by Info Edge. The stock underperformed its sector by approximately 1%, continuing its trend of trading below all key moving averages. Over the past year, the stock has declined 29.57%, contrasting sharply with the Sensex’s 6.60% gain, reflecting persistent challenges in the company’s fundamentals and market sentiment.

Financially, Info Edge maintains robust sales growth at an annualised 20.48% and operating profit growth of 26.15%, with a clean balance sheet and strong receivables management. Institutional investors hold a majority 52.15% stake, indicating sustained confidence despite recent price weakness. However, the Mojo Score remains at 43.0 with a Sell grade, reflecting cautious market views.

Daily Price Performance: Info Edge vs Sensex (2–6 Feb 2026)

Key Takeaways

Underperformance Amid Sector and Market Strength: Info Edge’s 9.65% weekly decline starkly contrasts with the Sensex’s 1.51% gain, highlighting company-specific challenges amid a broadly resilient market.

Mixed Derivatives Signals: Heavy call and put option activity at the ₹1,260 strike price ahead of the 24 February expiry reflects a market divided between cautious optimism and bearish hedging, contributing to volatility.

Technical Weakness: The stock consistently traded below all major moving averages throughout the week, signalling sustained downward momentum and limited short-term support.

Proximity to 52-Week Low: The stock’s fall to Rs. 1,127.95 marks a new 52-week low, underscoring the extent of recent price pressure and potential investor concern.

Robust Financials and Institutional Support: Despite price weakness, Info Edge maintains strong sales and profit growth, a clean balance sheet, and significant institutional ownership, which may provide some stability.

Sectoral Headwinds: The IT software and e-retail sectors faced pressure during the week, with sector declines amplifying the stock’s challenges.

Conclusion

Info Edge (India) Ltd’s performance in the week ending 6 February 2026 reflects a complex interplay of technical weakness, mixed market sentiment, and sectoral headwinds. The stock’s significant 9.65% decline and fresh 52-week low highlight the challenges faced amid cautious investor positioning and volatile derivatives activity. While the company’s robust financial metrics and institutional backing offer some reassurance, the prevailing Mojo Grade of Sell and sustained underperformance relative to the Sensex suggest that the stock remains under pressure in the near term. Market participants will be closely watching option expiry dynamics and sector developments for clearer directional cues in the coming weeks.

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