Info Edge Sees Heavy Call Option Activity Amid Bullish Momentum

Robust Call Option Activity Highlights Investor Sentiment

On 18 March 2026, Info Edge’s call options with a strike price of ₹1,000 expiring on 30 March 2026 emerged as the most actively traded contracts in the market. A total of 8,108 contracts changed hands, generating a turnover of ₹677.42 lakhs. The open interest stood at 2,077 contracts, indicating sustained interest and potential accumulation by market participants. This heightened activity is particularly significant given the underlying stock price of ₹995.6, hovering just below the strike price, suggesting traders are positioning for a near-term upside move.

Price Performance and Technical Context

Info Edge’s stock price has been on a positive trajectory, gaining 4.98% over the past two consecutive sessions. On 18 March, the stock touched an intraday high of ₹1,002.9, marking a 4.13% increase from the previous close. This performance aligns closely with the broader IT-Software sector, which gained 3.65% on the day, and outpaced the Sensex’s modest 0.64% rise. The stock’s one-day return of 3.87% slightly exceeded the sector’s 3.74%, underscoring its relative strength.

Technically, the stock is trading above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This positioning suggests a short-term bullish momentum that has yet to fully translate into a sustained medium- or long-term uptrend. The rising delivery volume of 13.41 lakh shares on 17 March, a 42.2% increase over the five-day average, further confirms growing investor participation and confidence in the stock’s near-term prospects.

Mojo Score and Grade Reflect Caution Despite Positive Momentum

Info Edge currently holds a Mojo Score of 43.0, categorised as a Sell grade as of 1 July 2025, a downgrade from its previous Hold rating. This downgrade reflects concerns over valuation and medium-term fundamentals despite the recent positive price action. The company is classified as a mid-cap with a market capitalisation of approximately ₹63,772 crores, placing it in a segment where volatility and sector dynamics can significantly influence investor sentiment.

The downgrade suggests that while short-term technicals and option market activity indicate bullishness, fundamental caution remains warranted. Investors should weigh the recent surge in call option interest against the broader context of the company’s financial health and sector outlook.

Sectoral and Market Context

The E-Retail and E-Commerce sector, to which Info Edge belongs, continues to attract investor attention amid evolving consumer trends and digital adoption. The IT-Software sector’s 3.65% gain on the day underscores the broader technology-driven market rally. Info Edge’s liquidity profile supports sizeable trades, with daily traded value sufficient to accommodate Rs 3.5 crore trade sizes based on 2% of the five-day average traded value, making it accessible for institutional and retail investors alike.

Expiry Patterns and Strike Price Significance

The concentration of call option activity at the ₹1,000 strike price, just above the current underlying price, is a classic indicator of bullish sentiment. Traders appear to be betting on a breakout above this psychologically significant level before the 30 March expiry. The open interest of 2,077 contracts at this strike suggests that many participants are either initiating or rolling forward bullish positions, anticipating a potential rally in the stock price.

Such positioning often precedes increased volatility as expiry approaches, with the possibility of sharp price movements if the stock breaches key resistance levels. Investors should monitor the evolving open interest and volume data closely to gauge the sustainability of this momentum.

Investor Takeaway and Outlook

Info Edge’s recent surge in call option volumes and positive price momentum signal a growing bullish sentiment among traders, particularly ahead of the 30 March 2026 expiry. The strike price of ₹1,000 serves as a critical resistance level, with market participants positioning for a potential breakout. However, the company’s downgraded Mojo Grade to Sell and a moderate Mojo Score of 43.0 counsel prudence.

Investors should consider the balance between technical optimism and fundamental caution. The stock’s liquidity and rising delivery volumes support active trading, but the broader sector dynamics and valuation concerns remain relevant. Monitoring option open interest trends and price action in the coming days will be crucial for assessing the sustainability of the current bullish positioning.

In summary, Info Edge presents an intriguing case of short-term bullishness amid longer-term caution, making it a stock to watch closely for both traders and investors seeking exposure to the evolving E-Retail and E-Commerce landscape.

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