Put Option Activity Highlights
On 18 September 2026, TCS emerged as the most active stock in put options trading, with several strike prices attracting substantial volumes. The highest number of contracts traded was at the Rs 2,000 strike, where 5,485 contracts changed hands, generating a turnover of approximately ₹78.86 lakhs. This was closely followed by the Rs 2,140 strike, which saw 5,758 contracts traded, commanding a turnover of ₹605.15 lakhs. Other notable strikes included Rs 2,200 with 2,890 contracts (₹563.90 lakhs turnover), Rs 2,080 with 3,497 contracts (₹164.37 lakhs turnover), and Rs 2,060 with 3,566 contracts (₹122.44 lakhs turnover).
Open interest figures further underscore the bearish positioning, with the Rs 2,000 strike holding an open interest of 2,755 contracts, and the Rs 2,140 strike at 1,842 contracts. The underlying stock price stood at Rs 2,129.60, indicating that investors are actively hedging against potential downside risks below current market levels.
Market Performance and Technical Context
TCS shares opened sharply lower on 18 September, declining by 2.57% and touching an intraday low of Rs 2,133, a drop of 2.6% from the previous close. The stock underperformed its sector by 0.88% and lagged the Sensex, which posted a modest gain of 0.16% on the same day. The weighted average price of traded shares was closer to the day’s low, signalling selling pressure.
Technically, TCS is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downtrend. Investor participation has also waned, with delivery volumes falling by 13.06% compared to the five-day average, suggesting reduced conviction among buyers.
Fundamental and Rating Update
Despite the bearish technical signals, TCS retains a strong fundamental profile as a large-cap leader in the Computers - Software & Consulting sector, with a market capitalisation of ₹7,94,532 crores. The company offers a relatively high dividend yield of 3.64%, which may provide some support to the stock price in volatile conditions.
On 22 April 2025, the company’s Mojo Grade was upgraded from Sell to Hold, reflecting a stabilisation in its outlook. The current Mojo Score stands at 51.0, indicating a neutral stance. This rating suggests that while the stock is not a strong buy, it remains a viable holding for investors with a medium-term horizon, especially given its sector leadership and dividend yield.
Investor Implications and Outlook
The surge in put option volumes at strike prices below the current market level points to heightened caution among investors. This activity may be driven by hedging strategies to protect existing long positions or outright bearish bets anticipating further downside. The concentration of open interest around the Rs 2,000 and Rs 2,140 strikes suggests these levels are key psychological and technical support zones to watch in the coming weeks.
Given the stock’s underperformance relative to its sector and the broader market, alongside its position below critical moving averages, investors should closely monitor upcoming earnings and sector developments. The high liquidity of TCS, with an average daily traded value sufficient to support trades of up to ₹15.84 crores, ensures that market participants can enter or exit positions with relative ease.
In summary, while TCS remains a fundamentally sound large-cap stock with a decent dividend yield, the current options market activity and technical indicators suggest a cautious near-term outlook. Investors may consider protective strategies or wait for clearer signs of trend reversal before increasing exposure.
