Recent Price Performance and Market Context
Infosys closed at ₹1,335.80 on 20 February 2026, hovering just 4.47% above its 52-week low of ₹1,281.50. The stock has underperformed its sector by 0.72% on the day and has declined by 3.58% over the past four consecutive trading sessions. Notably, it is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. Investor participation has also waned, with delivery volumes dropping 43.87% against the five-day average, indicating cautious sentiment among shareholders.
Despite these headwinds, Infosys maintains a robust market capitalisation of ₹5,48,496 crores, categorising it firmly as a large-cap stock. The company’s dividend yield remains attractive at 3.41%, providing some income cushion for investors amid price volatility.
Call Option Activity: Strike Prices and Volumes
The most active call options for Infosys are concentrated around the 24 February 2026 expiry, with three strike prices drawing substantial interest: ₹1,360, ₹1,380, and ₹1,400. The ₹1,360 strike saw the highest number of contracts traded at 8,713, generating a turnover of ₹230.72 lakhs and an open interest of 5,722 contracts. The ₹1,400 strike followed closely with 6,325 contracts traded, a turnover of ₹38.96 lakhs, and a notably higher open interest of 11,383 contracts. Meanwhile, the ₹1,380 strike recorded 6,116 contracts traded, turnover of ₹69.23 lakhs, and an open interest of 3,737 contracts.
These strike prices are all above the current underlying value of ₹1,335.80, indicating that traders are positioning for a potential upside move in the near term. The elevated open interest at the ₹1,400 strike, in particular, suggests a strong bullish sentiment or hedging activity by institutional players anticipating a rebound or volatility around this level.
Interpreting the Bullish Positioning Amid Bearish Trends
The juxtaposition of heavy call option buying with a declining stock price and subdued volume paints a nuanced picture. On one hand, the falling price and weak moving averages reflect near-term bearishness and investor caution. On the other, the concentrated call option activity at higher strikes implies that market participants are either speculating on a rebound or employing strategic hedges against short positions.
Such activity could be driven by expectations of positive catalysts, including upcoming quarterly results, contract wins, or sectoral tailwinds in the software and consulting space. Alternatively, it may reflect arbitrage strategies or portfolio rebalancing by large investors seeking to capitalise on volatility ahead of expiry.
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Mojo Score and Analyst Ratings
Infosys currently holds a Mojo Score of 57.0, which corresponds to a Mojo Grade of Hold. This represents a downgrade from a previous Buy rating as of 9 February 2026, reflecting a more cautious stance by analysts amid recent price weakness and sector headwinds. The Market Cap Grade remains at 1, underscoring the company’s large-cap status and liquidity profile.
Given the stock’s recent underperformance relative to the Sensex, which gained 0.64% on the same day, and the sector’s modest decline of 0.57%, Infosys appears to be lagging its peers. This divergence may be contributing to the mixed signals seen in the options market, where bullish bets coexist with technical weakness.
Expiry Patterns and Implications for Investors
The 24 February 2026 expiry date is pivotal, with the bulk of call option activity clustered around this timeframe. The high turnover and open interest at strikes above the current price suggest that traders are positioning for a potential breakout or volatility spike in the coming days. Investors should monitor price action closely, especially around the ₹1,360 to ₹1,400 range, as a sustained move above these levels could trigger short-covering and further upside momentum.
Conversely, failure to breach these strikes may reinforce the bearish trend, potentially leading to further declines or consolidation near recent lows. The falling delivery volumes and weak moving averages caution against aggressive long positions without confirmation.
Liquidity and Trading Considerations
Infosys remains sufficiently liquid for sizeable trades, with a five-day average traded value supporting a trade size of approximately ₹50.91 crores. This liquidity facilitates active options trading and allows institutional investors to implement complex strategies without significant market impact.
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Conclusion: Navigating Mixed Signals in Infosys Options
Infosys Ltd’s recent call option activity reveals a market bracing for potential volatility and a possible rebound despite the stock’s current bearish technical posture. The concentration of call contracts at strikes above the prevailing price indicates that traders are either speculating on a near-term recovery or hedging existing positions.
Investors should weigh these signals carefully, considering the stock’s underperformance relative to its sector and the broader market, alongside its attractive dividend yield and large-cap liquidity. Monitoring price action around the key strike prices and expiry date will be crucial for making informed decisions in the coming weeks.
Overall, while the options market suggests some optimism, the prevailing technical weakness advises a cautious approach until clearer directional confirmation emerges.
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