Robust Put Option Volumes Highlight Bearish Positioning
On 7 September 2026, Infosys witnessed significant put option trading volumes concentrated at strike prices near and slightly below the current market price of ₹1,100.8. The most active strike was ₹1,100, with 8,825 contracts traded, generating a turnover of ₹903.68 lakhs and an open interest of 7,269 contracts. This was closely followed by the ₹1,120 strike, which saw 3,847 contracts traded and an open interest of 3,910. The ₹1,080 and ₹1,060 strikes also recorded substantial activity, with 3,205 and 1,989 contracts traded respectively.
This clustering of put option activity around the ₹1,060 to ₹1,120 range suggests that market participants are either hedging existing long positions or speculating on a potential decline in the stock price over the coming weeks. The expiry date of 29 September 2026 is less than a month away, intensifying the focus on short-term downside protection.
Technical Weakness Reinforces Bearish Outlook
Infosys has been under pressure for the past four consecutive trading sessions, losing 4.67% over this period. The stock opened sharply lower by 2.5% on 7 September, touching an intraday low of ₹1,101.7. Notably, it has been trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. The narrow intraday trading range of just ₹0.8 on the day further indicates subdued investor interest and a lack of bullish conviction.
Investor participation has also waned, with delivery volumes falling by 28.15% compared to the five-day average, suggesting reduced confidence in the stock’s near-term prospects. Despite this, Infosys continues to offer a relatively high dividend yield of 4.3%, which may provide some cushion for long-term investors amid the volatility.
Comparative Performance and Market Context
Infosys underperformed its sector, Computers - Software & Consulting, by 1.28% on the day, while the broader Sensex declined by a modest 0.25%. This relative weakness highlights company-specific concerns or profit-taking pressures that are not fully reflected in the wider market. The stock’s large-cap status and market capitalisation of ₹4,58,580 crores underscore its importance within the sector and the broader index.
Mojo Score Upgrade Reflects Mixed Sentiment
Interestingly, Infosys’ Mojo Grade was upgraded from Sell to Hold on 13 April 2026, with a current Mojo Score of 62.0. This indicates a cautious improvement in fundamental or technical factors, yet the prevailing put option activity and recent price action suggest that investors remain wary of further downside risks. The Hold rating implies that while the stock is not a clear sell, it is also not positioned for immediate upside, reinforcing the need for prudent risk management.
Expiry Patterns and Strategic Implications
The concentration of put options expiring on 29 September 2026 at strikes close to the current price is a classic sign of hedging or speculative bearish bets. Traders may be using these puts to protect long positions against a potential correction or to capitalise on expected volatility. The high open interest at these strikes also means that any sharp price movement could trigger significant option-related activity, potentially amplifying price swings.
Given the stock’s liquidity, with an average traded value sufficient to support trades of around ₹20.51 crores, these option positions are likely held by institutional investors or sophisticated traders rather than retail participants alone.
Investor Takeaway
For investors, the current landscape suggests caution. The heavy put option volumes and technical underperformance point to a market expectation of near-term weakness or at least elevated volatility. Those holding Infosys shares may consider protective strategies such as buying puts or tightening stop-loss levels. Conversely, traders looking for opportunities might explore put-selling strategies at these strikes if they anticipate a stabilisation or rebound, though this carries significant risk given the prevailing bearish signals.
Long-term investors should weigh the attractive dividend yield and the company’s large-cap stature against the current technical challenges and market sentiment. Monitoring the stock’s price action as the 29 September expiry approaches will be crucial to gauge whether the bearish positioning materialises or dissipates.
