Infosys Sees Heavy Put Option Activity Ahead of March Expiry Amid Bearish Sentiment

Robust Put Option Volumes Indicate Bearish Positioning

On 18 March 2026, Infosys recorded substantial put option volumes across several strike prices, notably at ₹1,180, ₹1,200, ₹1,220, ₹1,240, and ₹1,260. The highest number of contracts traded was at the ₹1,200 strike, with 3,840 contracts exchanging hands, generating a turnover of ₹1.52 crores and an open interest of 3,370 contracts. Close behind, the ₹1,240 strike saw 2,818 contracts traded with a turnover of ₹2.29 crores and an open interest of 2,867 contracts.

The ₹1,220 and ₹1,260 strikes also exhibited heavy activity, with 2,563 and 1,924 contracts traded respectively, indicating a broad range of put strikes attracting investor interest. The underlying stock price stood at ₹1,269.7, placing these strike prices slightly below or near the current market level, which suggests investors are positioning for potential downside or seeking protection against volatility.

Expiry Patterns and Open Interest Dynamics

All the put options in focus are set to expire on 30 March 2026, less than two weeks away. The clustering of open interest around the ₹1,200 to ₹1,260 strikes, with open interest figures ranging from 1,110 at ₹1,180 to 3,370 at ₹1,200, highlights these levels as critical support zones in the options market. Traders often use such strikes to hedge existing long positions or to speculate on a decline in the stock price.

The turnover figures, particularly the ₹2.29 crores at ₹1,240 and ₹2.10 crores at ₹1,260, underscore the liquidity and active participation in these strikes. This heightened activity ahead of expiry can lead to increased volatility as market participants adjust their positions.

Stock Performance and Technical Context

Infosys closed the day with a 3.05% gain, outperforming the Sensex’s 0.56% rise and slightly edging past the IT - Software sector’s 2.58% advance. Despite this positive daily return of 2.73%, the stock remains 3.68% above its 52-week low of ₹1,215.1, indicating a recent recovery from lower levels.

However, the stock is trading below its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a cautious technical outlook. This divergence between short-term gains and longer-term moving average trends may explain the increased put option interest as investors hedge against potential pullbacks.

Investor participation has also risen, with delivery volumes reaching 52.37 lakh shares on 17 March, a 27.2% increase over the five-day average. This heightened activity suggests growing market attention and possibly increased hedging demand.

Mojo Score and Market Capitalisation Insights

Infosys holds a Mojo Score of 51.0, placing it in the ‘Hold’ category, a downgrade from its previous ‘Buy’ rating as of 9 February 2026. This shift reflects a more cautious stance on the stock’s near-term prospects, aligning with the increased put option activity observed.

The company remains a large-cap heavyweight with a market capitalisation of approximately ₹4,99,827 crore, underscoring its significance in the Computers - Software & Consulting sector. Its dividend yield stands at a healthy 3.74%, which may provide some support to investors amid volatility.

Put Options as a Hedging Mechanism

The concentration of put option interest at strikes below the current market price suggests that investors are actively hedging their long positions or speculating on a correction. The ₹1,200 strike, in particular, acts as a key psychological and technical support level, with the highest open interest and contract volume.

Such positioning is typical ahead of expiry dates, as traders seek to manage risk or capitalise on expected price movements. The sizeable turnover and open interest figures indicate that these puts are not merely speculative but likely part of broader risk management strategies.

Sector and Broader Market Context

The IT - Software sector has shown resilience with a 2.58% gain on the day, supported by strong investor interest and sectoral tailwinds. Infosys’s outperformance relative to the Sensex and sector average highlights its continued relevance, though the technical indicators and options activity suggest caution.

Liquidity remains robust, with the stock’s trading volume supporting sizeable trades up to ₹24.43 crore based on 2% of the five-day average traded value. This liquidity facilitates active options trading and allows institutional investors to implement complex hedging strategies efficiently.

Investor Takeaway

For investors in Infosys, the current surge in put option activity ahead of the 30 March expiry serves as a cautionary signal. While the stock has shown resilience and outperformed key benchmarks recently, the technical backdrop and options market positioning suggest that downside risks are being actively hedged.

Those holding long positions may consider protective strategies or closely monitor the ₹1,200 to ₹1,260 levels as potential support zones. Conversely, traders looking to capitalise on volatility could find opportunities in the options market given the elevated liquidity and open interest.

Overall, the mixed signals from price action, technical indicators, and options data underscore the importance of a balanced approach to Infosys stock in the near term.

Summary of Key Metrics for Infosys Ltd (INFY)

• Underlying Price: ₹1,269.7
• Most Active Put Strikes: ₹1,180, ₹1,200, ₹1,220, ₹1,240, ₹1,260
• Highest Put Volume: 3,840 contracts at ₹1,200 strike
• Open Interest Peak: 3,370 contracts at ₹1,200 strike
• Expiry Date: 30 March 2026
• Mojo Score: 51.0 (Hold, downgraded from Buy on 9 Feb 2026)
• Market Cap: ₹4,99,827 crore (Large Cap)
• Dividend Yield: 3.74%
• Day’s Price Change: +3.05%
• Sector Performance: +2.58%
• Sensex Performance: +0.56%

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