Persistent Systems Sees Surge in Put Option Activity Amid Bearish Sentiment

Surge in Put Option Volumes and Open Interest

On 25 February 2026, Persistent Systems (NSE: PERSISTENT) recorded substantial put option volumes, particularly at strike prices of ₹4,600, ₹4,700, and ₹4,800, all expiring on 30 March 2026. The most active strike was ₹4,700, with 2,654 contracts traded, generating a turnover of ₹613.90 lakhs and an open interest of 1,249 contracts. The ₹4,800 strike followed closely with 1,977 contracts traded, turnover of ₹516.73 lakhs, and open interest at 1,034 contracts. The ₹4,600 strike saw 1,575 contracts traded, turnover of ₹287.00 lakhs, and open interest of 1,314 contracts.

These figures indicate a pronounced preference for downside protection or speculative bearish bets, as the underlying stock price stood at ₹4,741 on the same day. The concentration of put activity near and slightly above the current market price suggests investors are positioning for potential declines or volatility in the near term.

Price Action and Technical Context

Despite the heavy put option interest, Persistent Systems’ stock price showed resilience on 25 February, opening with a gap up of 2.79% and touching an intraday high of ₹4,941, a 5.98% rise from the previous close. This rebound came after five consecutive days of declines, signalling a possible short-term trend reversal.

However, the stock remains below its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating that the broader technical trend is still bearish. The weighted average price of traded shares was closer to the day’s low, suggesting selling pressure despite the intraday gains.

In comparison, the IT - Software sector gained 2.11% on the day, while Persistent Systems underperformed its sector by 0.29%. The Sensex rose by 0.57%, highlighting a mixed market environment where Persistent Systems is lagging behind broader indices and sector peers.

Investor Participation and Liquidity

Investor interest in Persistent Systems has notably increased, with delivery volumes on 24 February reaching 11.95 lakh shares — a 155.51% rise over the five-day average. This surge in participation underscores heightened market attention, possibly driven by the stock’s recent price volatility and option market activity.

Liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes up to ₹15.08 crore based on 2% of the five-day average traded value. This liquidity facilitates active trading and efficient price discovery, especially important given the elevated options market activity.

Mojo Score and Analyst Ratings

Persistent Systems currently holds a Mojo Score of 61.0, reflecting a Hold rating from MarketsMOJO, downgraded from a Buy on 5 February 2026. The downgrade reflects a cautious stance amid mixed technical signals and the recent uptick in bearish option positioning. The company’s market capitalisation stands at ₹73,610 crore, categorising it as a mid-cap stock within the Computers - Software & Consulting sector.

The Market Cap Grade is 2, indicating moderate size and liquidity relative to the broader market. This rating, combined with the recent option market activity, suggests investors are balancing optimism about the company’s fundamentals with concerns over near-term price volatility.

Implications of Put Option Activity

Heavy put option trading at strike prices near the current market level often signals hedging by long investors or outright bearish bets by speculators. The concentration of open interest and turnover at ₹4,700 and ₹4,800 strikes, both above the current price, indicates that market participants are preparing for potential downside or increased volatility ahead of the March expiry.

Such activity can also reflect institutional investors seeking protection against a pullback after the recent rally, especially given the stock’s underperformance relative to its sector and the broader market. The sizeable open interest at these strikes suggests that any significant price movement below these levels could trigger further option-related selling pressure.

Sector and Market Context

The IT - Software sector has been generally buoyant, gaining 2.11% on the day, supported by strong earnings and positive outlooks for digital transformation spending. Persistent Systems’ underperformance relative to this sector gain highlights company-specific challenges or profit-taking by investors.

Given the sector’s strength, the bearish option positioning in Persistent Systems may be a tactical hedge rather than a reflection of a fundamental downturn. Investors should monitor upcoming earnings announcements, contract wins, and broader macroeconomic factors that could influence the stock’s trajectory.

Investor Takeaway

For investors, the current landscape suggests a cautious approach to Persistent Systems. The heavy put option activity and technical indicators point to potential near-term volatility, despite the recent price rebound. Those holding the stock may consider protective strategies such as buying puts or tightening stop-loss levels to mitigate downside risk.

Meanwhile, prospective investors should weigh the company’s fundamental strengths against the evident market caution. Monitoring option market trends alongside price action can provide valuable insights into evolving investor sentiment and risk appetite.

Overall, Persistent Systems remains a stock to watch closely as expiry approaches, with option market dynamics offering a window into the collective expectations of market participants.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today