Info Edge Sees Heavy Put Option Activity Amid Bearish Sentiment

Intense Put Option Trading Highlights Bearish Outlook

On 2 February 2026, Info Edge (India) Ltd emerged as the most active stock in put options trading, with 3,337 contracts exchanged at the ₹1,260 strike price expiring on 24 February 2026. This volume translates to a turnover of approximately ₹600.28 lakhs, underscoring substantial investor interest in downside protection or speculative bearish bets. The open interest currently stands at 424 contracts, indicating sustained positions rather than transient trades.

The underlying stock, trading under the ticker NAUKRI, closed at ₹1,245.0, slightly below the put strike price, which adds to the attractiveness of these puts as a hedge or directional play. The put option activity suggests that market participants are bracing for potential downside or volatility in the near term, possibly reflecting concerns over sectoral headwinds or company-specific factors.

Price and Technical Indicators Point to Weakness

Info Edge’s stock price has shown signs of weakness, touching an intraday low of ₹1,227.7 on the day, representing a 2.15% decline. This underperformance is slightly more pronounced than the sector’s 0.35% drop and contrasts with the Sensex’s modest 0.22% gain, highlighting stock-specific pressures.

Technically, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish trend across multiple timeframes. Such positioning often attracts put buying as investors seek to hedge long positions or capitalise on anticipated declines.

Investor participation has also intensified, with delivery volumes rising sharply to 18.59 lakh shares on 30 January 2026, a 140.43% increase over the five-day average. This surge in delivery volume suggests heightened conviction among traders, possibly reflecting increased selling pressure or portfolio rebalancing.

Fundamental and Market Context

Info Edge (India) Ltd operates within the E-Retail and E-Commerce sector, a space characterised by rapid innovation but also intense competition and regulatory scrutiny. The company holds a large market capitalisation of ₹80,495 crores, placing it firmly in the large-cap category. Despite this stature, its current Mojo Score of 43.0 and a Mojo Grade of Sell, downgraded from Hold as of 1 July 2025, reflect deteriorating fundamentals or market sentiment.

The Market Cap Grade of 1 further indicates limited growth prospects or valuation concerns relative to peers. This downgrade and bearish grading likely contribute to the increased put option activity, as investors seek to mitigate downside risk or position for further declines.

Liquidity remains adequate, with the stock’s average traded value supporting trade sizes up to ₹4.09 crores, ensuring that option and equity trades can be executed without significant market impact. This liquidity is crucial for institutional investors employing hedging strategies via options.

Expiry Patterns and Investor Behaviour

The 24 February 2026 expiry date for the active put options is notable as it falls within the monthly expiry cycle, a period often marked by heightened volatility and strategic positioning. The concentration of put contracts at the ₹1,260 strike price, just above the current market price, suggests a protective stance by investors who may be long the stock or exposed to sector risks.

Such strike price selection is typical for hedging, as it offers a balance between cost and protection. The open interest of 424 contracts indicates that these positions are not merely speculative but likely part of broader risk management frameworks.

Given the stock’s trading below all major moving averages and the recent downgrade, the put buying could also reflect speculative bearish sentiment, anticipating further price erosion in the near term.

Implications for Investors and Market Participants

The pronounced put option activity in Info Edge (India) Ltd signals a cautious or bearish stance among market participants. For long-term investors, this may warrant a reassessment of portfolio exposure given the stock’s recent downgrade and technical weakness. The elevated delivery volumes and declining price trend suggest that selling pressure could persist in the short term.

For traders and hedgers, the active put options at the ₹1,260 strike provide a cost-effective means to protect against further downside or to capitalise on expected volatility around the February expiry. The liquidity in both the underlying and options markets supports efficient execution of such strategies.

However, it is important to balance this bearish positioning with the company’s large-cap status and sector fundamentals, which may offer resilience over a longer horizon. Investors should monitor upcoming earnings, sector developments, and broader market trends to gauge whether the current pessimism is justified or overextended.

Conclusion

Info Edge (India) Ltd’s surge in put option trading ahead of the 24 February 2026 expiry highlights a growing bearish sentiment and hedging activity among investors. The stock’s technical weakness, downgrade to a Sell grade, and increased delivery volumes reinforce this cautious outlook. While the company remains a significant player in the E-Retail and E-Commerce sector, current market dynamics suggest that investors should exercise prudence and consider protective strategies in the near term.

As the expiry date approaches, the evolution of open interest and price action will provide further clues on investor conviction and potential directional moves. For now, the heavy put option activity serves as a clear signal of heightened risk awareness surrounding Info Edge (India) Ltd.

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