Info Edge (India) Ltd Sees Heavy Call Option Activity Ahead of February Expiry

Robust Call Option Volume Highlights Investor Interest

The most active call options for Info Edge (India) Ltd are concentrated at the ₹1260 strike price, with 3,297 contracts traded, generating a turnover of approximately ₹5.13 crores. This surge in call option volume is notable given the underlying stock price of ₹1245.0, indicating that traders are positioning for a potential upside move beyond the current market price within the next three weeks.

Open interest at this strike stands at 436 contracts, suggesting that a sizeable number of traders are holding onto bullish positions rather than merely engaging in short-term speculative trades. The expiry date of 24 February 2026 is fast approaching, which often leads to increased volatility and strategic positioning in options markets.

Technical Indicators Paint a Cautious Picture

Despite the bullish undertones in options activity, Info Edge’s technical chart remains under pressure. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. On 2 February 2026, the stock touched an intraday low of ₹1227.7, down 2.15% from previous levels, reflecting short-term weakness.

Moreover, the stock’s one-day return of -0.58% underperformed the broader E-Retail sector’s decline of -0.35%, while the Sensex managed a modest gain of 0.22%. This relative underperformance adds to the cautious sentiment among investors.

Rising Delivery Volumes Indicate Growing Investor Participation

Interestingly, delivery volumes have surged sharply, with 18.59 lakh shares delivered on 30 January 2026, marking a 140.43% increase over the five-day average delivery volume. This rise in physical share transfers suggests that long-term investors may be accumulating shares despite the recent price softness, possibly anticipating a turnaround or value realisation in the medium term.

Mojo Score Downgrade Reflects Deteriorating Fundamentals

Info Edge’s mojo score currently stands at 43.0, categorised as a Sell rating by MarketsMOJO, a downgrade from its previous Hold grade as of 1 July 2025. This downgrade reflects deteriorating fundamentals or valuation concerns, which may be influencing the cautious stance of many investors despite the active call option interest.

The company’s market capitalisation remains substantial at ₹80,495 crores, placing it firmly in the large-cap category. However, its market cap grade is rated at 1, indicating limited upside potential relative to its size and sector peers.

Liquidity and Trading Dynamics Support Active Options Market

Liquidity metrics for Info Edge are adequate, with the stock’s average traded value supporting trade sizes of up to ₹4.09 crores based on 2% of the five-day average traded value. This liquidity facilitates active options trading and allows institutional and retail investors to execute sizeable positions without significant market impact.

The combination of rising delivery volumes and active call option trading suggests a bifurcated market view: while some investors remain cautious or bearish, others are positioning for a potential rebound or volatility-driven gains ahead of the February expiry.

Sector Context and Comparative Performance

The E-Retail and E-Commerce sector has experienced mixed performance recently, with some stocks showing resilience while others face headwinds from regulatory changes and competitive pressures. Info Edge’s performance today aligns closely with sector trends, but its technical weakness and mojo downgrade set it apart as a stock under pressure.

Investors should weigh these factors carefully, considering both the active bullish positioning in options markets and the underlying fundamental and technical challenges.

Expiry Patterns and Investor Sentiment

With the 24 February 2026 expiry approaching, the concentration of call options at the ₹1260 strike price indicates that traders are anticipating a potential recovery or at least a stabilisation above the current price level. The open interest and turnover figures suggest that this is not merely speculative but a strategic positioning by investors expecting a positive catalyst or technical rebound.

However, the stock’s failure to breach key moving averages and the recent intraday lows highlight the risks involved. Investors should monitor price action closely in the coming weeks, especially around the expiry date, as volatility may increase and influence both the stock and its options pricing.

Conclusion: A Stock at a Crossroads

Info Edge (India) Ltd presents a nuanced picture for investors. The heavy call option activity at the ₹1260 strike price ahead of the February expiry signals bullish bets on a near-term recovery. Yet, the technical downtrend, mojo downgrade to Sell, and recent price weakness caution against unbridled optimism.

Rising delivery volumes indicate some long-term investor confidence, but the overall market sentiment remains mixed. Traders and investors should balance the active options market signals with fundamental and technical analysis before making decisions.

Given the stock’s current profile, it may be prudent to watch for confirmation of a trend reversal or positive fundamental developments before committing significant capital.

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