Robust Call Option Trading Signals Bullish Positioning
On 23 September 2026, Infosys emerged as the most active stock in call options, with the 1040 strike price call expiring on 29 September attracting substantial interest. A total of 16,548 contracts were traded, generating a turnover of approximately ₹4.73 crores. Open interest at this strike stands at 12,540 contracts, indicating sustained bullish positioning by market participants betting on a rebound or upside movement in the near term.
The underlying stock price at the time was ₹1,018.3, placing the 1040 strike roughly 2.1% out of the money. This suggests that traders are anticipating a potential recovery above this level within the next week, despite recent price weakness.
Price Performance and Technical Context
Infosys has been on a downward trajectory, losing 5.66% over the past six consecutive trading sessions. The stock closed at ₹1,018.3, just 3.31% above its 52-week low of ₹982.4, signalling proximity to a significant support zone. This decline has outpaced the sector’s underperformance, with the stock falling 1.30% on the day compared to the sector’s 0.87% drop and contrasting with the Sensex’s modest 0.41% gain.
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. The narrow intraday trading range of ₹0.3 further reflects subdued volatility and investor indecision amid the recent downtrend.
Investor Participation and Liquidity Considerations
Investor participation appears to be waning, with delivery volumes on 22 September recorded at 54.11 lakh shares, down 7.44% from the five-day average. Despite this, liquidity remains adequate for sizeable trades, with the stock’s average traded value supporting transactions up to ₹21.3 crores based on 2% of the five-day average turnover.
Infosys continues to offer an attractive dividend yield of 4.71%, which may provide some defensive appeal to income-focused investors amid the current price softness.
Fundamental and Market Positioning
Infosys Ltd, with a market capitalisation of ₹4,15,527 crores, remains a large-cap heavyweight in the Computers - Software & Consulting industry. The company’s Mojo Score has improved to 60.0, reflecting a Hold rating, upgraded from a Sell on 13 April 2026. This upgrade signals a cautious optimism from analysts, balancing the recent price weakness against the company’s underlying fundamentals and sector positioning.
The Hold rating suggests that while the stock is not currently favoured for aggressive buying, it is also not recommended for selling, indicating a wait-and-watch stance among market participants.
Expiry Patterns and Market Sentiment
The concentration of call option activity at the 1040 strike price for the 29 September expiry is notable. Such clustering often indicates a consensus target level among traders, who may be positioning for a short-term rebound or a technical bounce from current support levels. The open interest data corroborates this, showing that a sizeable number of contracts remain outstanding, which could lead to increased volatility as expiry approaches.
Given the stock’s recent underperformance and technical weakness, the heavy call buying may reflect speculative hedging or a contrarian bet on a near-term recovery, possibly driven by expectations of positive corporate developments or broader market support.
Comparative Sector and Market Analysis
Within the Computers - Software & Consulting sector, Infosys’s recent underperformance contrasts with the broader market’s modest gains, highlighting sector-specific pressures or company-specific concerns. The stock’s proximity to its 52-week low and sustained trading below key moving averages suggest that investors remain cautious.
However, the sizeable call option interest indicates that some market participants are positioning for a turnaround, potentially anticipating a technical rebound or a re-rating driven by upcoming earnings or sectoral tailwinds.
Implications for Investors
For investors, the current scenario presents a nuanced picture. The bearish price action and technical indicators caution against aggressive long positions, while the elevated call option activity signals pockets of bullish sentiment that could materialise into short-term gains.
Dividend yield remains a positive factor for income investors, and the recent upgrade to a Hold rating suggests that analysts see value stabilising at current levels. Traders with a higher risk appetite may consider the 1040 strike call options as a leveraged play on a potential rebound, but should remain mindful of the stock’s recent downtrend and sector dynamics.
Overall, a balanced approach that monitors price action closely ahead of the 29 September expiry is advisable, with attention to open interest shifts and volume patterns that could presage a directional move.
