Infosys Ltd Sees Heavy Call Option Activity Amid Mixed Technical Signals

Robust Call Option Activity Signals Bullish Sentiment

On 20 March 2026, Infosys witnessed a remarkable spike in call option trading, with 5,649 contracts exchanged at the ₹1,260 strike price expiring on 30 March 2026. This activity generated a turnover of ₹379.61 lakhs and an open interest of 4,750 contracts, underscoring strong market interest in bullish bets on the stock. The underlying stock price closed at ₹1,241.3, just 2.34% above its 52-week low of ₹1,215.1, indicating that traders are positioning for a potential rebound from recent lows.

Price and Technical Overview

Infosys outperformed its sector on the day, gaining 2.27%, compared to the Computers - Software & Consulting sector’s 1.73% rise and the Sensex’s 1.08% advance. The stock touched an intraday high of ₹1,251.2, marking a 2.49% increase from the previous close. However, the technical picture remains mixed as Infosys is trading below its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling persistent downward pressure in the short to medium term.

Investor participation has also waned, with delivery volumes falling by 17.75% against the five-day average, registering 41.29 lakh shares on 19 March 2026. This decline in delivery volume suggests reduced conviction among long-term holders, even as short-term traders ramp up call option positions.

Dividend Yield and Market Capitalisation

Infosys continues to offer a relatively attractive dividend yield of 3.78% at the current price level, which may appeal to income-focused investors amid volatile market conditions. The company remains a large-cap heavyweight with a market capitalisation of ₹4,95,021 crore, reinforcing its status as a blue-chip stock within the Indian IT sector.

Mojo Score Downgrade Reflects Caution

MarketsMOJO’s latest assessment downgraded Infosys from a Buy to a Hold rating on 9 February 2026, reflecting a more cautious stance amid the stock’s recent underperformance and technical challenges. The current Mojo Score stands at 51.0, indicating a neutral outlook. This downgrade suggests that while the company’s fundamentals remain solid, near-term price appreciation may be limited without a clear catalyst.

Expiry Patterns and Strike Price Concentration

The concentration of call option activity at the ₹1,260 strike price, which is slightly above the current market price, indicates that traders are betting on a moderate upside in the coming days before the 30 March expiry. The open interest of 4,750 contracts at this strike is significant, suggesting that a sizeable number of market participants expect the stock to breach this level or at least trade close to it.

Such positioning often precedes volatility around expiry dates, as traders adjust their holdings to capitalise on expected price movements. The high turnover in call options relative to puts further confirms a bullish tilt in sentiment, despite the stock’s technical headwinds.

Liquidity and Trading Viability

Infosys remains sufficiently liquid for sizeable trades, with a 2% threshold of the five-day average traded value supporting trade sizes up to ₹27.3 crore. This liquidity ensures that institutional and retail investors can execute large orders without significant price impact, an important consideration for options traders seeking to enter or exit positions efficiently.

Investor Implications and Outlook

For investors, the heightened call option activity in Infosys suggests a growing expectation of a price recovery in the near term. However, the stock’s position below all major moving averages and declining delivery volumes warrant caution. The current Hold rating from MarketsMOJO aligns with this balanced view, signalling that while upside potential exists, risks remain elevated.

Investors should monitor the stock’s ability to sustain gains above the ₹1,260 level, as a decisive break could trigger further bullish momentum. Conversely, failure to hold this strike price may result in continued sideways or downward pressure. The relatively high dividend yield provides some cushion for long-term holders amid volatility.

Sector and Market Context

Within the Computers - Software & Consulting sector, Infosys’s 1-day return of 1.61% outpaced the sector’s 1.29% gain and the broader Sensex’s 1.08% rise, highlighting its relative strength despite technical challenges. As a large-cap leader, Infosys’s performance often sets the tone for the sector, making its option market activity a key barometer for investor sentiment.

Overall, the combination of active call option trading, technical caution, and fundamental stability paints a nuanced picture for Infosys. Traders and investors alike should weigh these factors carefully when considering their exposure to the stock in the coming weeks.

Conclusion

Infosys Ltd’s surge in call option contracts at the ₹1,260 strike price ahead of the 30 March expiry reflects a cautiously optimistic market stance. While the stock trades near its 52-week low and below key moving averages, the bullish positioning in options suggests expectations of a rebound. The Hold rating and Mojo Score of 51.0 reinforce a balanced outlook, urging investors to remain vigilant and consider both technical and fundamental indicators before making decisions.

As expiry approaches, monitoring open interest changes and price action around the ₹1,260 level will be critical for gauging the sustainability of this bullish sentiment.

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