Rs 1,040 Puts Draw 2,466 Contracts on Infosys Ltd as Stock Holds Above Key Moving Averages

Put Options Event and Cash Market Context

The most active put strikes for Infosys Ltd on 17 Sep 2026 were Rs 1,040, Rs 1,020, and Rs 1,000, with 2,466, 2,624, and 3,025 contracts traded respectively. The Rs 1,040 strike, closest to the current underlying price of Rs 1,053.30, saw a turnover of approximately ₹13.19 crores. The Rs 1,020 and Rs 1,000 strikes, further out-of-the-money (OTM), also recorded significant volumes but with lower turnover values, reflecting their lower premiums.

The stock itself has experienced a mild decline over the past two days, losing 2.1% in that period, and traded within a narrow range of Rs 0.8 on the day. Despite this, it remains above the 5-day moving average but below the 20-day, 50-day, 100-day, and 200-day moving averages. Delivery volumes have fallen by over 30% compared to the five-day average, indicating reduced investor participation in the cash market. Is this divergence between options activity and cash market participation signalling a protective stance?

Strike Price Analysis: Moneyness and Distance from Underlying

The Rs 1,040 put strike sits approximately 1.25% below the current stock price, placing it near at-the-money (ATM) territory. The Rs 1,020 and Rs 1,000 strikes are 3.1% and 5.1% out-of-the-money respectively. This gradation in strike prices is critical to understanding the intent behind the put activity.

ATM puts tend to be used either for directional bearish bets or as part of hedging strategies to protect existing long positions. The OTM puts at Rs 1,020 and Rs 1,000, especially given their distance from the current price, are more likely to be hedging instruments or part of spread strategies rather than outright bearish bets. Could the concentration of activity near Rs 1,040 indicate a technical support level that traders are protecting?

Interpreting the Put Activity: Bearish, Hedging, or Put Writing?

Put option activity is inherently ambiguous, and the data for Infosys Ltd exemplifies this complexity. Three main interpretations emerge:

• Bearish Positioning: The ATM Rs 1,040 puts could represent bearish bets anticipating a decline below this level by the 29 Sep 2026 expiry. However, the stock’s modest recent decline and position above the 5-day MA suggest this is not a strong directional conviction.
• Protective Hedging: Investors holding long positions may be buying these puts as insurance against a pullback, especially given the stock’s position below longer-term moving averages and the recent drop in delivery volumes. The Rs 1,020 and Rs 1,000 OTM puts support this view as downside protection.
• Put Writing (Bullish Bet): While less evident here, put writing involves selling puts to collect premium, betting the stock will not fall below the strike. The open interest and turnover data do not strongly indicate this strategy dominating the activity.

Given the stock’s current technical setup and the strike price distribution, the protective hedging interpretation appears most plausible. Is this cautious positioning a response to the stock’s struggle to break above medium-term resistance?

Open Interest and Contracts Analysis

The Rs 1,040 put strike has an open interest (OI) of 5,018 contracts, while Rs 1,020 and Rs 1,000 strikes have OIs of 3,126 and 5,138 respectively. The number of contracts traded on 17 Sep 2026 at these strikes (2,466; 2,624; 3,025) represents a significant proportion of the existing OI, indicating fresh positioning rather than mere rollovers or adjustments.

The ratio of contracts traded to open interest is roughly 0.49 for Rs 1,040 puts, 0.84 for Rs 1,020, and 0.59 for Rs 1,000, suggesting particularly active new interest at the Rs 1,020 strike. This fresh activity aligns with the idea of hedging, as investors may be layering protection at multiple downside levels.

Cash Market Context: Technicals and Delivery Volumes

Infosys Ltd currently trades above its 5-day moving average but remains below the 20-day, 50-day, 100-day, and 200-day moving averages. This positioning suggests short-term strength amid longer-term resistance. The Rs 1,040 put strike is close to the 5-day MA, which may be viewed as a near-term support level by traders.

Delivery volumes on 16 Sep 2026 were 35.76 lakh shares, down 30.27% from the five-day average, indicating a decline in investor participation. This thinning of delivery-backed trading could be prompting investors to hedge their positions with puts, as the rally lacks robust conviction. Does this combination of technical resistance and falling delivery volumes justify the protective put buying?

Fundamental Snapshot

Infosys Ltd remains a large-cap leader in the Computers - Software & Consulting sector with a market capitalisation of ₹4,30,436 crores. The stock offers a high dividend yield of 4.58% at the current price, which may attract income-focused investors despite recent price volatility.

Conclusion: Protective Hedging Dominates Put Activity

The put option activity in Infosys Ltd on 17 Sep 2026, concentrated around the Rs 1,040 strike, appears to be primarily protective hedging rather than outright bearish positioning. The stock’s position above the 5-day moving average, combined with falling delivery volumes and the distribution of open interest, supports the view that investors are seeking downside insurance amid technical resistance rather than betting on a sharp decline.

While some bearish bets cannot be ruled out, the data suggests a cautious approach by market participants, balancing optimism with risk management. Should investors consider similar protective strategies or look beyond to alternative opportunities?

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