Infosys Ltd Sees Heavy Call Option Activity Amid Bearish Price Momentum

Call Option Activity Highlights

The call options for Infosys expiring on 30 March 2026 have witnessed robust trading volumes, with 4,261 contracts exchanged, generating a turnover of ₹111.64 lakhs. Open interest stands at 10,285 contracts, signalling sustained interest in bullish bets at the 1300 strike price. This strike is notably above the current underlying stock price of ₹1,241.80, indicating that traders are positioning for a potential rebound or upside movement in the near term.

Stock Price Performance and Technical Indicators

Infosys shares have been under pressure recently, closing 2.09% lower on 19 March 2026. The stock touched an intraday low of ₹1,239, which is just 2.17% above its 52-week low of ₹1,215.10. This proximity to the yearly low highlights the bearish momentum prevailing in the stock. Furthermore, Infosys is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a weak technical setup.

In comparison, the Computers - Software & Consulting sector declined by 1.66% on the same day, while the Sensex fell 2.15%, placing Infosys’ performance slightly below the sector average but marginally better than the broader market index. This relative underperformance may be a cause for concern among investors who had previously rated the stock more favourably.

Investor Participation and Liquidity

Investor participation has shown signs of rising interest, with delivery volumes reaching 62.19 lakh shares on 18 March 2026, a 35.61% increase over the five-day average. This uptick in delivery volume suggests that long-term investors might be accumulating shares despite the recent price weakness. Liquidity remains adequate, with the stock capable of supporting trade sizes up to ₹26.62 crore based on 2% of the five-day average traded value, ensuring smooth execution for institutional and retail investors alike.

Mojo Score and Rating Revision

MarketsMOJO assigns Infosys a Mojo Score of 51.0, categorising it as a 'Hold' with a recent downgrade from a 'Buy' rating on 9 February 2026. This revision reflects a tempered outlook amid the stock’s recent price weakness and technical challenges. The large-cap company, with a market capitalisation of ₹5,14,001 crore, remains a significant player in the Computers - Software & Consulting sector, but the downgrade signals caution for investors expecting near-term gains.

Dividend Yield and Income Appeal

Despite the subdued price action, Infosys offers a relatively attractive dividend yield of 3.64% at the current price level. This yield may appeal to income-focused investors seeking steady returns amid market volatility. The combination of dividend income and potential capital appreciation could provide a balanced investment proposition, although the recent downgrade and technical indicators suggest a need for careful monitoring.

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 anticipating a rebound above this level within the next eleven days. However, the underlying stock’s proximity to its 52-week low and its trading below all major moving averages indicate that the market remains cautious. The open interest of over 10,000 contracts at this strike price is a significant figure, reflecting a sizeable bullish wager despite the prevailing bearish price trend.

Comparative Sector and Market Context

Infosys’ underperformance relative to its sector and the broader Sensex index highlights the challenges faced by the stock. While the sector declined 1.66%, Infosys fell 2.09%, slightly lagging behind. This divergence may be attributed to company-specific factors or broader concerns about the software and consulting industry’s near-term outlook. Investors should weigh these factors alongside the strong call option interest, which may signal a potential turnaround or speculative positioning.

Investor Takeaway

Infosys Ltd’s heavy call option activity at the 1300 strike price expiring on 30 March 2026 indicates a notable degree of bullish speculation despite the stock’s recent underperformance and technical weakness. The downgrade from 'Buy' to 'Hold' by MarketsMOJO and the stock’s trading below all major moving averages suggest caution. However, rising delivery volumes and a healthy dividend yield provide some support for investors considering a medium-term position.

Investors should closely monitor the stock’s price action in the coming days, particularly as the March expiry approaches. The open interest and turnover in call options may foreshadow a potential recovery, but the current fundamentals and technical indicators counsel prudence. Comparing Infosys with peers and alternative investment opportunities using portfolio optimisation tools could help investors make more informed decisions in this volatile environment.

Conclusion

While Infosys Ltd remains a large-cap stalwart in the software and consulting sector, its recent price weakness and technical challenges have led to a cautious stance among analysts and investors. The surge in call option activity at the 1300 strike price reflects optimism for a rebound, yet the stock’s proximity to its 52-week low and downgrade to a 'Hold' rating temper expectations. Investors should balance these factors carefully, considering dividend income and rising investor participation against the backdrop of broader market and sector trends.

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