Infosys Ltd Sees Heavy Call Option Activity Ahead of March Expiry

Call Option Activity Highlights

On 9 March 2026, Infosys recorded robust call option volumes, particularly at the ₹1,300 and ₹1,340 strike prices for the expiry on 30 March 2026. The ₹1,300 strike saw 3,908 contracts traded, generating a turnover of ₹615.9 lakhs, with open interest standing at 6,058 contracts. Meanwhile, the ₹1,340 strike price attracted even greater activity, with 5,325 contracts traded and a turnover of ₹433.0 lakhs, alongside an open interest of 6,984 contracts. These figures underscore a strong investor focus on these levels as potential price targets or hedging points.

The underlying stock price at the time was ₹1,289.1, placing the ₹1,300 strike just above the current market price and the ₹1,340 strike moderately out-of-the-money. The elevated open interest at these strikes suggests sustained interest and possible accumulation of bullish bets, despite the stock’s recent downward trajectory.

Price and Technical Context

Infosys closed the day down by 1.22%, underperforming the sector’s decline of 1.21% but outperforming the broader Sensex, which fell 2.88%. The stock is trading approximately 2.59% above its 52-week low of ₹1,264.1, indicating it remains near a significant support zone. However, it is currently below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish technical setup.

Investor participation has also waned, with delivery volume on 6 March falling by 35.95% compared to the five-day average, registering 47.65 lakh shares. This decline in delivery volume may reflect reduced conviction among long-term holders or a cautious stance ahead of upcoming earnings or macroeconomic events.

Despite the subdued price action, Infosys offers a relatively attractive dividend yield of 3.52%, which may provide some defensive appeal to income-focused investors amid volatility.

Mojo Score and Market Capitalisation

Infosys holds a substantial market capitalisation of ₹5,30,547 crores, categorising it as a large-cap stock within the Computers - Software & Consulting sector. The company’s Mojo Score currently stands at 51.0, reflecting a Hold rating, which marks a downgrade from a previous Buy rating issued on 9 February 2026. This adjustment signals a more cautious outlook from analysts, likely influenced by the recent price softness and technical indicators.

Investor Sentiment and Expiry Patterns

The concentration of call option activity at the ₹1,300 and ₹1,340 strikes for the 30 March expiry suggests that market participants are positioning for a potential recovery above the current trading range. The open interest accumulation at these strikes indicates that traders may be anticipating a rebound or are hedging existing short positions.

However, the fact that the stock is trading below all key moving averages and close to its 52-week low tempers the bullish sentiment. It is possible that the call buying is speculative or part of complex option strategies such as spreads or collars designed to manage risk while maintaining upside exposure.

Liquidity and Trading Considerations

Liquidity remains adequate for sizeable trades, with the stock’s average traded value over five days supporting trade sizes up to ₹36.09 crores based on 2% of average volume. This liquidity profile facilitates active options trading and allows institutional investors to enter or exit positions without significant market impact.

Outlook and Investor Takeaways

While the heavy call option activity at strikes above the current market price indicates some degree of bullish positioning, the overall technical and fundamental signals for Infosys remain mixed. The Hold rating and Mojo Score of 51.0 reflect a neutral stance, suggesting investors should weigh the potential for a rebound against the risks posed by the stock’s proximity to its 52-week low and weak moving average trends.

Investors considering exposure to Infosys should monitor upcoming earnings announcements, sector developments, and broader market conditions that could influence the stock’s trajectory. The relatively high dividend yield offers some cushion, but the recent decline in delivery volumes and price momentum warrant caution.

In summary, the options market activity reveals a nuanced picture: while some traders are positioning for upside, the prevailing technical backdrop advises a measured approach. Those looking to capitalise on Infosys’s potential recovery may find opportunities in call options, but should remain vigilant to evolving market dynamics.

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