Put Option Activity Highlights
On 23 June 2026, Infosys recorded significant volumes in put options with strike prices clustered around the current market price of ₹1,036.1. The most actively traded put contracts were at strikes of ₹1,040, ₹1,035, ₹1,020, and ₹1,000, all expiring on 30 June 2026. Notably, the ₹1,040 strike saw the highest number of contracts traded at 5,372, generating a turnover of ₹389.79 lakhs and an open interest of 3,699 contracts. This was closely followed by the ₹1,035 strike with 2,831 contracts traded and a turnover of ₹179.71 lakhs.
The ₹1,000 strike price also attracted substantial interest, with 2,965 contracts traded and an open interest of 4,183, indicating strong hedging or speculative bets on a further decline below this level. The ₹1,020 strike recorded 2,524 contracts traded, with turnover of ₹98.13 lakhs and open interest of 1,884 contracts.
Market Context and Stock Performance
Infosys has been under pressure recently, closing 2.76% lower on the day, underperforming its sector by 1.43% and the Sensex by a marginal 0.06%. The stock touched an intraday low of ₹1,034, just 0.71% above its 52-week low of ₹1,030, signalling a fragile technical position. Furthermore, Infosys is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish trend.
Investor participation has also waned, with delivery volumes falling by 41.4% compared to the five-day average, suggesting reduced conviction among buyers. Despite this, the stock offers a relatively high dividend yield of 4.56%, which may provide some support to long-term holders.
Mojo Score and Analyst Sentiment
Infosys currently holds a Mojo Score of 57.0, categorised as a 'Hold' rating, an improvement from a previous 'Sell' grade assigned on 13 April 2026. This upgrade reflects a cautious stance by analysts, recognising the stock's large-cap status and stable fundamentals amid near-term volatility. The company’s market capitalisation stands at a robust ₹4,32,260 crores, reinforcing its position as a heavyweight in the Computers - Software & Consulting sector.
Implications of Put Option Concentration
The concentration of put option activity at strikes near and slightly above the current market price suggests that investors are positioning for potential downside or are actively hedging existing long exposures. The high open interest at the ₹1,000 strike, in particular, indicates a significant level of protection or bearish speculation if the stock breaches this psychological support level.
Such activity often precedes increased volatility, especially as the expiry date approaches. Traders and institutional investors may be using these options to mitigate risk amid uncertain market conditions or to capitalise on expected price declines.
Expiry Patterns and Trading Strategies
The 30 June 2026 expiry is attracting the bulk of put option trades, highlighting a short-term focus on downside risk management. This expiry coincides with the end of the quarter, a period typically marked by portfolio rebalancing and strategic adjustments by fund managers. The clustering of strike prices within a narrow band around ₹1,000 to ₹1,040 reflects a consensus on key support and resistance levels for Infosys in the near term.
Investors should monitor open interest changes and volume spikes in these strikes as indicators of shifting market sentiment. A sustained increase in put buying could foreshadow further weakness, while a decline might signal stabilisation or a potential rebound.
Comparative Sector and Market Performance
Infosys’s underperformance relative to its sector and the Sensex adds weight to the bearish positioning observed in the options market. The Computers - Software & Consulting sector has shown mixed performance recently, but Infosys’s decline of 2.48% on the day contrasts with the sector’s 1.36% drop and the Sensex’s modest 0.06% gain. This divergence may be driving investors to hedge more aggressively against stock-specific risks.
Investor Takeaways
For investors, the heavy put option activity signals caution. Those holding Infosys shares might consider protective strategies such as buying puts or collars to limit downside risk. Conversely, traders with a bearish outlook could view the elevated put volumes as confirmation of a potential correction, presenting opportunities for short-term trades.
Long-term investors should weigh the stock’s attractive dividend yield and large-cap stability against the current technical weakness and market sentiment. Monitoring upcoming quarterly results and sector developments will be crucial in assessing whether the recent bearish trend will persist or reverse.
Conclusion
Infosys Ltd is currently navigating a challenging phase marked by increased bearish sentiment and significant put option activity concentrated around near-the-money strikes expiring at the end of June 2026. The stock’s proximity to its 52-week low, combined with underperformance relative to peers and the broader market, has prompted investors to seek downside protection. While the recent upgrade to a 'Hold' rating reflects some confidence in the company’s fundamentals, the options market suggests caution in the short term. Market participants should closely watch price action and options open interest as expiry approaches to gauge the evolving risk landscape for Infosys.
