Infosys Ltd Sees Heavy Call Option Activity Amid Bearish Price Momentum

Call Option Activity Highlights

The call options for Infosys Ltd with a strike price of ₹1300 expiring on 30 March 2026 have witnessed robust trading activity. A total of 3,913 contracts changed hands, generating a turnover of approximately ₹56.0 crores. The open interest at this strike stands at 8,422 contracts, indicating sustained interest and potential accumulation by market participants anticipating a price recovery above this level.

This heightened call option activity suggests a degree of bullish sentiment among traders, who may be positioning for a rebound or hedging existing long exposures. The underlying stock price at ₹1287.3 is just 2.04% above its 52-week low of ₹1264.1, signalling that the market is closely watching this critical support zone.

Price Performance and Technical Context

Infosys has underperformed its sector, the Computers - Software & Consulting space, by 0.34% on the day, with a 1-day return of -0.57% compared to the sector’s -0.26% and the Sensex’s -0.32%. The stock has declined for two consecutive sessions, losing 1.87% over this period. It has traded within a narrow range of ₹12.1, reflecting subdued volatility amid cautious investor sentiment.

Technically, Infosys is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish trend across multiple timeframes. This persistent weakness is compounded by falling investor participation, with delivery volumes on 10 March dropping by 46.34% compared to the 5-day average, signalling reduced conviction among long-term holders.

Dividend Yield and Liquidity Considerations

Despite the recent price softness, Infosys continues to offer a relatively attractive dividend yield of 3.56%, which may provide some support to the stock in the medium term. Liquidity remains adequate, with the stock’s traded value supporting sizeable trade sizes up to ₹28.89 crores based on 2% of the 5-day average traded value, ensuring smooth execution for institutional investors.

Mojo Score and Analyst Ratings

Infosys currently holds a Mojo Score of 51.0, placing it in the 'Hold' category, a downgrade from its previous 'Buy' rating as of 9 February 2026. The Market Cap Grade is 1, reflecting its status as a large-cap stock with a market capitalisation of ₹5,25,396 crores. This rating adjustment aligns with the recent price weakness and technical deterioration, signalling caution for investors.

Expiry Patterns and Market Sentiment

The concentration of call option activity at the ₹1300 strike price with expiry at the end of March suggests that traders are positioning for a potential recovery above this level within the next three weeks. However, the underlying stock’s proximity to its 52-week low and the downward momentum across moving averages indicate that any upside may face resistance.

Open interest data corroborates this view, with a sizeable build-up at the 1300 strike, but the lack of significant price appreciation so far implies that the market remains tentative. Investors should monitor the expiry closely, as a decisive move above ₹1300 could trigger further bullish momentum, while failure to breach this level may lead to continued consolidation or further declines.

Implications for Investors

For investors, the current scenario presents a mixed picture. The active call option interest at ₹1300 strike price indicates some degree of optimism or hedging activity, but the underlying stock’s technical weakness and falling participation suggest caution. The downgrade to a 'Hold' rating by MarketsMOJO reflects this ambivalence, recommending a wait-and-watch approach rather than aggressive accumulation.

Investors should closely monitor price action around the ₹1300 level and expiry outcomes, as a sustained breakout could signal a reversal in trend. Conversely, failure to hold above recent lows may prompt further downside risk. The attractive dividend yield offers some cushion, but it may not be sufficient to offset near-term price pressures.

Sector and Market Context

Within the Computers - Software & Consulting sector, Infosys’s underperformance relative to peers and the broader Sensex highlights sector rotation and selective investor preferences. The sector’s modest decline of 0.26% contrasts with Infosys’s sharper fall, suggesting that stock-specific factors are at play. Market participants may be favouring other large-cap IT names with stronger momentum or fundamentals.

Conclusion

Infosys Ltd’s prominent call option activity at the ₹1300 strike price expiring on 30 March 2026 underscores a cautious bullish stance among derivatives traders. However, the underlying stock’s technical challenges, recent downgrades, and subdued investor participation temper enthusiasm. Investors should adopt a measured approach, balancing the potential for a rebound against prevailing bearish signals and sector dynamics.

Monitoring expiry developments and price behaviour around key technical levels will be critical in assessing the stock’s near-term trajectory.

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