Key Events This Week
5 Jan: Heavy put option activity signals bearish sentiment
7 Jan: Robust call option volumes indicate bullish positioning
8 Jan: Intraday low hit amid price pressure and sector underperformance
9 Jan: Surge in put option contracts ahead of expiry despite steady stock price
5 January: Bearish Sentiment Evident in Heavy Put Option Activity
TCS opened the week under pressure, closing at Rs.3,214.70, down 1.09% on the day, while the Sensex declined 0.18%. The stock saw significant put option volumes at the Rs.3,200 strike for the 27 January expiry, with 3,105 contracts traded and open interest of 4,355 contracts. This surge in put activity indicated increased hedging or bearish bets despite TCS outperforming its sector, which fell 1.83% that day. Technical indicators showed a mixed picture, with the stock trading above its 50-day and 100-day moving averages but below shorter-term averages, suggesting short-term caution among investors.
6-7 January: Call Option Activity Signals Optimism Amid Price Gains
On 6 January, TCS rebounded, gaining 1.28% to close at Rs.3,255.75, even as the Sensex declined 0.19%. This positive momentum continued on 7 January with a 1.19% gain to Rs.3,294.45, marking the week's high. Call option volumes surged, particularly at the Rs.3,300 strike, with 5,841 contracts traded and open interest reaching 14,289 contracts. This activity reflected bullish positioning ahead of expiry, supported by rising delivery volumes which increased 47.99% compared to the five-day average. The stock traded above all key moving averages, signalling technical strength and investor confidence during this period.
This week's disclosed pick, a Large Cap from NBFC, comes with precise Target Price and analysis. Check if you're positioned right for this opportunity!
- - Precise target price set
- - Weekly selection live
- - Position check opportunity
8 January: Intraday Low and Sector Underperformance Amid Mixed Signals
TCS faced notable selling pressure on 8 January, closing down 2.74% at Rs.3,204.30 and hitting an intraday low of Rs.3,181.60. This decline was sharper than the sector’s 1.74% fall and the Sensex’s 1.41% drop. Despite heavy trading volumes exceeding ₹41,317 lakhs, delivery volumes contracted by 17.72%, indicating reduced conviction among investors. The stock traded below its 5-day, 20-day, and 200-day moving averages, signalling short-term weakness. Concurrently, call option activity remained robust with 7,592 contracts at the Rs.3,300 strike and 4,416 contracts at Rs.3,400, while put option volumes surged at strikes near Rs.3,200, Rs.3,240, and Rs.3,260, reflecting a complex market sentiment balancing bullish bets and downside hedging.
9 January: Put Option Surge Highlights Caution Despite Steady Price
On the final trading day of the week, TCS closed marginally higher by 0.12% at Rs.3,208.00, outperforming the Sensex which fell 0.89%. However, put option activity intensified dramatically with 7,522 contracts traded at the Rs.3,200 strike, generating turnover of approximately ₹82.8 crores and open interest of 5,765 contracts. This surge in bearish option positioning suggests investors are bracing for potential near-term volatility or downside risk ahead of the 27 January expiry. Delivery volumes rose sharply by 94.58%, signalling renewed investor participation. The stock remains above its 50-day and 100-day moving averages but below shorter-term averages, maintaining a mixed technical outlook.
Holding Tata Consultancy Services Ltd. from ? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-05 | Rs.3,214.70 | -1.09% | 37,730.95 | -0.18% |
| 2026-01-06 | Rs.3,255.75 | +1.28% | 37,657.70 | -0.19% |
| 2026-01-07 | Rs.3,294.45 | +1.19% | 37,669.63 | +0.03% |
| 2026-01-08 | Rs.3,204.30 | -2.74% | 37,137.33 | -1.41% |
| 2026-01-09 | Rs.3,208.00 | +0.12% | 36,807.62 | -0.89% |
Key Takeaways
Positive Signals: TCS demonstrated resilience relative to the Sensex, outperforming the index by 1.32% over the week despite a 1.30% price decline. The stock’s technical position above its 50-day and 100-day moving averages provides medium-term support. Robust call option activity at strikes near Rs.3,300 and Rs.3,400 reflects investor optimism for a potential rebound. Delivery volumes surged notably on 6 and 9 January, indicating renewed investor interest.
Cautionary Signals: Heavy put option volumes clustered around the Rs.3,200 strike highlight significant hedging and bearish sentiment, suggesting market participants are bracing for near-term volatility or downside risk. The stock’s failure to sustain gains above shorter-term moving averages and the sharp intraday decline on 8 January underscore short-term weakness. Declining delivery volumes midweek and sector underperformance add to the cautious outlook.
Conclusion
The week for Tata Consultancy Services Ltd. was characterised by a tug-of-war between bullish and bearish forces, reflected in the mixed price action and heavy options market activity. While the stock showed technical resilience and intermittent gains, the pronounced put option interest and intraday weakness on 8 January signal investor caution amid broader market uncertainties. The approaching 27 January expiry will be a critical period to watch, as option positioning may amplify volatility and influence price direction. Investors should monitor key technical levels, particularly around Rs.3,200 and Rs.3,300, and weigh the stock’s solid fundamentals and dividend yield against the evolving market dynamics.
Unlock special upgrade rates for a limited period. Start Saving Now →
