Put Option Trading Surges at Key Strike Prices
On the expiry date of 28 April 2026, Infosys recorded substantial put option volumes across several strike prices clustered near the current underlying value of ₹1,175.1. The most notable activity was at the ₹1,150 strike, where 4,988 contracts were traded, generating a turnover of ₹61.85 lakhs and an open interest of 2,347 contracts. This was closely followed by the ₹1,160 strike with 3,738 contracts traded and ₹79.54 lakhs turnover, and the ₹1,140 strike with 3,491 contracts and ₹26.95 lakhs turnover.
The ₹1,180 strike also saw significant activity with 2,717 contracts traded, turnover of ₹139.87 lakhs, and open interest of 1,114 contracts. The clustering of put option trades just below and around the current market price suggests investors are positioning for potential downside or seeking protection against near-term declines.
Bearish Positioning and Hedging Strategies
The heavy put option volumes indicate a pronounced bearish sentiment or a hedging strategy by market participants. Put options provide the right to sell shares at a predetermined price, and increased open interest at strikes below the current price often signals expectations of a price drop or a desire to limit downside risk.
Given Infosys’s underlying price of ₹1,175.1, the concentration of put contracts at ₹1,140, ₹1,150, and ₹1,160 strikes suggests traders are bracing for a possible correction towards the stock’s recent 52-week low of ₹1,152.2, which is only 1.73% away. This proximity to the low may be prompting investors to hedge existing long positions or speculate on a pullback.
Stock Performance and Technical Context
Despite the bearish options activity, Infosys outperformed its sector on the day, gaining 1.85% compared to the sector’s 1.70% rise and the Sensex’s 0.59% advance. This marks a reversal after three consecutive days of declines, signalling some short-term resilience.
However, the stock remains below all major moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicating a prevailing downtrend. The rising delivery volume of 2.63 crore shares on 24 April, up 271.94% from the five-day average, points to increased investor participation, possibly reflecting repositioning ahead of expiry.
Valuation and Market Capitalisation
Infosys is classified as a large-cap stock with a market capitalisation of ₹4,68,201 crore. The company’s current dividend yield stands at a healthy 3.99%, which may provide some support to the share price amid volatility. Liquidity remains robust, with the stock able to handle trade sizes of approximately ₹49.36 crore based on 2% of the five-day average traded value.
Mojo Score and Analyst Ratings
The company’s Mojo Score has improved to 57.0, earning a Hold grade as of 13 April 2026, upgraded from a Sell rating. This reflects a cautious but more optimistic outlook from analysts, balancing the recent price weakness with underlying fundamentals and dividend attractiveness.
Expiry Patterns and Market Implications
The expiry on 28 April 2026 is shaping up as a critical juncture for Infosys. The concentration of put option open interest and turnover at strikes below the current price suggests that investors are either hedging against a near-term decline or speculating on downside moves. This activity often precedes increased volatility around expiry dates as traders adjust positions.
Investors should monitor the stock’s ability to hold above the ₹1,150 to ₹1,160 range in the coming sessions. A breach below these levels could trigger further downside, while a rebound may alleviate bearish pressures and reduce put option premiums.
Comparative Sector and Market Context
Within the Computers - Software & Consulting sector, Infosys’s put option activity stands out as the most active, highlighting its importance as a bellwether stock. The sector’s modest gain of 1.70% on the day contrasts with the heightened caution reflected in options markets, underscoring the nuanced investor sentiment.
Meanwhile, the broader Sensex’s 0.59% rise suggests that the cautious stance on Infosys is more stock-specific rather than a reflection of overall market weakness.
Investor Takeaway
For investors, the heavy put option activity in Infosys ahead of expiry signals a need for vigilance. While the stock has shown resilience in the short term, the technical downtrend and proximity to 52-week lows warrant careful risk management. The elevated open interest and turnover in puts at strikes near the current price indicate that downside protection is in demand.
Long-term investors may view the current weakness as an opportunity given the company’s large-cap status, dividend yield, and improving analyst sentiment. However, traders should be prepared for potential volatility around expiry and monitor price action closely to gauge whether bearish positioning translates into actual price declines.
