Infosys Ltd Sees Heavy Call Option Activity Ahead of March Expiry

Robust Call Option Volumes Signal Bullish Positioning

The most active call options for Infosys are clustered around the near-the-money and slightly out-of-the-money strikes, reflecting investor optimism for a potential upward move in the coming weeks. The ₹1,300 strike call option led the pack with 8,329 contracts traded, generating a turnover of ₹355.15 lakhs and an open interest of 10,470 contracts. This is significant given the underlying stock price of ₹1,269.90, indicating a strong bet on the stock surpassing this level by expiry.

Close behind, the ₹1,260 strike call saw 7,223 contracts traded with a turnover of ₹733.57 lakhs and open interest of 4,353 contracts, while the ₹1,280 strike call recorded 4,938 contracts traded, turnover of ₹337.96 lakhs, and open interest of 5,791 contracts. The ₹1,240 strike call also attracted substantial activity with 4,614 contracts traded and turnover of ₹640.98 lakhs, though open interest remains relatively modest at 1,891 contracts.

This concentration of call option activity at strikes above the current market price suggests that traders are positioning for a moderate rally in Infosys shares over the next two weeks, with the 30 March expiry date serving as a key milestone.

Stock Performance and Technical Context

Infosys shares have shown a day’s gain of 3.05%, outperforming the Sensex’s 0.56% rise and slightly edging the IT - Software sector’s 2.58% advance. The stock touched an intraday high of ₹1,261.90, a 2.35% increase, signalling renewed buying interest. However, it remains 3.68% above its 52-week low of ₹1,215.10, indicating some lingering weakness in the broader trend.

Technically, Infosys is trading below its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which suggests the stock is still in a consolidation or corrective phase. Despite this, rising delivery volumes of 52.37 lakh shares on 17 March, a 27.2% increase over the five-day average, point to growing investor participation and potential accumulation at current levels.

The stock’s dividend yield stands at a healthy 3.74%, adding to its appeal for income-focused investors amid volatile market conditions. Liquidity remains robust, with the stock capable of handling trade sizes up to ₹24.43 crore based on 2% of the five-day average traded value, ensuring smooth execution for institutional and retail participants alike.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Infosys a Mojo Score of 51.0, categorising it with a Hold grade as of 9 February 2026, a downgrade from its previous Buy rating. This reflects a cautious stance amid mixed technical signals and sector dynamics. The company remains a large-cap heavyweight with a market capitalisation of ₹4,99,827 crore, firmly entrenched in the Computers - Software & Consulting industry.

Investors should weigh the current bullish option activity against the stock’s technical challenges and recent rating adjustment. The elevated open interest in call options at strikes above the current price suggests optimism, but the Hold grade signals the need for prudence and close monitoring of price action in the coming sessions.

Expiry Patterns and Market Implications

The expiry date of 30 March 2026 is attracting significant attention from traders, with call option volumes concentrated at strikes ₹1,240, ₹1,260, ₹1,280, and ₹1,300. The highest open interest at ₹1,300 strike (10,470 contracts) indicates a key resistance level that market participants expect Infosys to challenge or breach in the near term.

Such clustering of open interest often leads to increased volatility as expiry approaches, with potential for sharp price movements if the stock moves decisively towards these strike prices. Traders utilising options strategies may look to capitalise on this by either exercising bullish bets or unwinding positions depending on price action.

Given the stock’s current position below major moving averages, a sustained rally above ₹1,300 would mark a technical breakout and could trigger further upside momentum. Conversely, failure to breach these levels may result in profit-taking and a return to consolidation.

Investor Takeaway

For investors and traders, the surge in call option activity in Infosys ahead of the March expiry is a clear signal of bullish sentiment, albeit tempered by technical caution. The stock’s strong dividend yield and rising delivery volumes add to its attractiveness, but the Hold rating and trading below key moving averages counsel a measured approach.

Market participants should monitor open interest trends and price movements closely over the next fortnight, particularly around the ₹1,280 to ₹1,300 strike range, to gauge the sustainability of the current optimism. Those seeking exposure to the IT sector may consider Infosys alongside other large-cap peers, balancing potential upside with risk management strategies.

Summary

Infosys Ltd’s call option market activity ahead of the 30 March expiry reveals a bullish tilt among traders, with significant volumes and open interest at strikes above the current market price. While the stock has outperformed the broader market today, technical indicators remain mixed, prompting a Hold rating from MarketsMOJO. Investors should stay alert to price action near key resistance levels and consider the broader sector context before making allocation decisions.

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