Infosys Ltd Sees Heavy Call Option Activity Ahead of January Expiry

Call Option Activity Highlights

On 19 January 2026, Infosys witnessed an impressive 10,067 call option contracts traded at the ₹1700 strike price, generating a turnover of approximately ₹280.67 lakhs. The open interest at this strike stands at 15,719 contracts, underscoring sustained investor interest and potential accumulation ahead of the expiry date on 27 January 2026. The underlying stock price was ₹1669.40 at the time, indicating that traders are positioning for a price rally above the strike level within the next week.

Market Context and Stock Performance

Infosys operates within the Computers - Software & Consulting industry and is classified as a large-cap stock with a market capitalisation of ₹6,84,996 crores. The company currently holds a Mojo Score of 70.0, reflecting a positive outlook, and was recently upgraded from a Hold to a Buy rating on 22 December 2025. This upgrade aligns with the growing bullish sentiment observed in the options market.

Despite the strong options activity, the stock price experienced a minor decline of 1.18% on the day, slightly underperforming the Sensex’s 0.52% fall but performing in line with the sector’s 1.25% drop. Notably, Infosys has traded within a narrow range of ₹15, suggesting consolidation after three consecutive days of gains. The stock remains above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained uptrend in the medium to long term.

Investor Participation and Liquidity

Investor participation has surged, with delivery volumes on 16 January reaching 1.07 crore shares, a remarkable 163.09% increase compared to the five-day average. This heightened activity indicates strong conviction among long-term holders and traders alike. Liquidity remains robust, with the stock capable of supporting trade sizes up to ₹33.25 crores based on 2% of the five-day average traded value, making it an attractive option for institutional investors and high-frequency traders.

Expiry Patterns and Strike Price Significance

The 27 January 2026 expiry is attracting significant attention, with the ₹1700 strike price emerging as the focal point for bullish bets. This strike is slightly above the current market price, indicating that traders expect a moderate upside in the coming week. The high open interest at this level suggests that many investors are either initiating fresh positions or rolling over existing ones to capitalise on anticipated gains.

Such concentrated activity at a single strike price often precedes notable price movements, as option writers and holders adjust their hedges and exposures. The combination of elevated turnover and open interest at ₹1700 points to a consensus that Infosys will breach this level, potentially triggering further buying momentum in the underlying shares.

Technical and Fundamental Outlook

From a technical perspective, Infosys’s position above all major moving averages confirms a bullish trend, despite the recent minor pullback. The narrow trading range and increased delivery volumes suggest consolidation rather than a reversal, which often precedes a breakout. Investors should monitor the stock’s ability to sustain above the ₹1700 mark, as this will validate the bullish options positioning.

Fundamentally, Infosys continues to demonstrate strong operational metrics and market leadership in the software and consulting sector. The recent upgrade to a Buy rating by MarketsMOJO, accompanied by a Mojo Grade improvement from Hold, reflects confidence in the company’s earnings growth and valuation. The Market Cap Grade of 1 further emphasises its status as a large-cap stalwart with stable fundamentals.

Risks and Considerations

While the call option activity signals optimism, investors should remain cautious of short-term volatility, especially given the stock’s recent price dip and sector-wide weakness. The broader market environment, including global tech sector trends and macroeconomic factors, could influence Infosys’s trajectory. Additionally, the expiry week often brings heightened volatility as traders adjust positions, which may lead to rapid price swings.

Investor Implications and Strategy

For investors and traders, the current call option activity in Infosys offers valuable insights into market expectations. The concentration of contracts at the ₹1700 strike price ahead of expiry suggests a strategic bullish stance, potentially signalling a breakout opportunity. Those considering exposure to Infosys should weigh the technical strength and fundamental upgrades against the risks of short-term volatility.

Options traders may look to capitalise on the momentum by initiating long call positions or employing spread strategies to benefit from anticipated upward price movement while managing risk. Meanwhile, long-term investors might view the recent upgrade and strong delivery volumes as confirmation of the company’s growth trajectory and resilience in a competitive sector.

Conclusion

Infosys Ltd’s dominant position in the call options market, combined with its solid fundamental and technical backdrop, underscores a bullish sentiment among market participants. The ₹1700 strike price for the 27 January 2026 expiry is a key level to watch, as it encapsulates the market’s expectations for near-term gains. While the stock has experienced a minor correction, the overall trend remains positive, supported by increased investor participation and a recent upgrade to a Buy rating.

As expiry approaches, monitoring open interest changes and price action will be crucial for investors seeking to navigate this dynamic environment. Infosys’s blend of strong fundamentals, technical strength, and active options market positioning makes it a compelling stock for both traders and long-term shareholders.

Unlock special upgrade rates for a limited period. Start Saving Now →