Infosys Ltd Sees Heavy Put Option Activity Amid Bearish Sentiment

Put Option Activity Highlights

On 17 March 2026, Infosys recorded substantial put option volumes, particularly for contracts expiring on 30 March 2026. The most actively traded put options were clustered around strike prices of ₹1180, ₹1200, ₹1220, and ₹1240, all within a narrow range of the underlying stock price, which stood at ₹1223.6 at the time.

The strike price of ₹1220 saw the highest number of contracts traded at 4,813, generating a turnover of ₹636.66 lakhs and an open interest of 2,649 contracts. Close behind, the ₹1200 strike price recorded 4,287 contracts traded with a turnover of ₹435.73 lakhs and an open interest of 3,237 contracts. The ₹1240 strike price also attracted heavy activity with 2,852 contracts traded, turnover of ₹473.77 lakhs, and open interest of 2,571 contracts. The ₹1180 strike price, while slightly lower in volume, still saw 2,137 contracts traded and a turnover of ₹163.27 lakhs.

This concentration of put option activity near the current stock price suggests that investors are positioning for a potential decline or are hedging existing long positions against downside risk in the near term.

Technical and Market Context

Infosys has recently hit a new 52-week low of ₹1215.1, marking a significant technical setback. The stock underperformed its sector by 0.48% on the day, closing down 2.23%, while the broader Sensex managed a modest gain of 0.17%. This divergence highlights sector-specific pressures on Infosys amid a relatively stable market environment.

Further technical weakness is evident as Infosys is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish trend. The rising delivery volume of 63.8 lakh shares on 16 March, up 62.02% against the five-day average, indicates heightened investor participation, possibly reflecting increased selling pressure or portfolio rebalancing.

Despite the bearish technical signals, Infosys continues to offer a relatively attractive dividend yield of 3.69%, which may provide some cushion for long-term investors amid volatility.

Investor Sentiment and Hedging Strategies

The surge in put option volumes at strike prices slightly below and above the current market price reflects a cautious stance among investors. The open interest figures, particularly at ₹1200 and ₹1240 strikes, indicate that many market participants are either hedging existing long positions or speculating on a near-term correction.

Given the expiry date of 30 March 2026, these options are positioned to capture any volatility or downside movement in the coming fortnight. The relatively high turnover in these contracts, amounting to several crores of rupees, underscores the importance of this expiry cycle for Infosys traders.

Such activity often precedes periods of increased price volatility, as option writers and holders adjust their positions in response to evolving market conditions. The concentration of put options near the money suggests that traders are bracing for potential downside risks, possibly linked to broader sectoral challenges or company-specific developments.

Fundamental and Market Cap Considerations

Infosys remains a large-cap heavyweight with a market capitalisation of approximately ₹5,06,762 crores, maintaining its status as a key player in the Computers - Software & Consulting industry. However, the recent downgrade in its Mojo Grade from Buy to Hold on 9 February 2026, with a current Mojo Score of 51.0, reflects tempered expectations on near-term performance.

This rating adjustment aligns with the technical weakness and increased bearish sentiment observed in the options market. Investors should weigh the company’s solid fundamentals and dividend yield against the current market headwinds and technical challenges.

Outlook and Investor Takeaways

With Infosys trading below all major moving averages and hitting fresh lows, the heavy put option activity signals a cautious market outlook. Investors should monitor the 30 March expiry closely, as the resolution of these options could trigger increased volatility.

Those holding long positions may consider protective strategies such as buying puts or tightening stop-loss levels to mitigate downside risk. Conversely, contrarian investors might view the elevated put volumes and technical weakness as a potential entry point, especially given the company’s strong market position and dividend yield.

Overall, the current environment calls for a balanced approach, combining technical analysis with fundamental insights to navigate the near-term uncertainties surrounding Infosys.

Summary of Key Metrics

Stock Price (17 Mar 2026): ₹1223.6
52-Week Low: ₹1215.1
Day’s Low: ₹1215.1 (-2.78%)
Day Change: -2.23%
Sector 1D Return: -1.67%
Sensex 1D Return: +0.17%
Market Cap: ₹5,06,762 crores (Large Cap)
Dividend Yield: 3.69%
Mojo Score: 51.0 (Hold, downgraded from Buy on 9 Feb 2026)

Options Summary for 30 March 2026 Expiry

Strike ₹1180: 2,137 contracts traded, turnover ₹163.27 lakhs, open interest 1,195
Strike ₹1200: 4,287 contracts traded, turnover ₹435.73 lakhs, open interest 3,237
Strike ₹1220: 4,813 contracts traded, turnover ₹636.66 lakhs, open interest 2,649
Strike ₹1240: 2,852 contracts traded, turnover ₹473.77 lakhs, open interest 2,571

Investors should remain vigilant as expiry approaches, with the potential for increased price swings driven by option unwinding and market sentiment shifts.

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