Robust Call Option Volumes Highlight Investor Interest
On 25 September 2026, Infosys witnessed significant call option activity concentrated around three key strike prices: ₹1,000, ₹1,020, and ₹1,040, all expiring on 29 September 2026. The most actively traded call option was at the ₹1,000 strike, with 9,417 contracts changing hands, generating a turnover of approximately ₹447.5 lakhs. Close behind was the ₹1,020 strike with 9,047 contracts traded and a turnover of ₹164.7 lakhs, followed by the ₹1,040 strike with 6,131 contracts and turnover of ₹39.97 lakhs.
Open interest data further underscores the sustained interest in these strikes, with the ₹1,040 call option holding an open interest of 11,102 contracts, the highest among the three, suggesting that traders are positioning for a potential upward move beyond this level. The ₹1,020 and ₹1,000 strikes have open interests of 6,127 and 3,300 contracts respectively, indicating a layered approach to bullish bets across a range of near-the-money and slightly out-of-the-money strikes.
Price Action and Technical Context
Infosys closed at ₹998.2 on 25 September 2026, hovering just 1.93% above its 52-week low of ₹982.4. The stock has been on a downward trajectory, losing 6.99% over the past eight consecutive sessions, underperforming its sector by 0.49% on the day. It is trading below all major moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a bearish technical setup.
Investor participation has also waned, with delivery volumes on 24 September falling by 30.68% compared to the five-day average, indicating reduced conviction among long-term holders. Despite this, the stock offers a relatively high dividend yield of 4.81%, which may provide some defensive appeal amid the recent weakness.
Market Cap and Sector Positioning
Infosys remains a large-cap heavyweight with a market capitalisation of ₹4,09,521 crores, operating within the Computers - Software & Consulting sector. The company’s Mojo Score has improved to 60.0, upgrading its Mojo Grade from Sell to Hold as of 13 April 2026, reflecting a stabilisation in fundamental and technical metrics. This upgrade may be influencing some of the bullish option positioning, as investors anticipate a potential turnaround or consolidation phase.
Interpreting the Call Option Activity
The concentration of call option trades at strike prices above the current market price suggests that traders are speculating on a rebound or at least a volatility-driven move higher before the expiry date. The highest open interest at the ₹1,040 strike, which is roughly 4.2% above the current price, indicates a moderately bullish sentiment, with investors willing to pay premiums for the possibility of a price recovery beyond this level within the next four days.
However, the substantial volume at the ₹1,000 and ₹1,020 strikes, closer to the current price, also points to a hedging or spread strategy, where traders may be balancing risk and reward by targeting multiple price points. This layered approach is typical in a market environment where the underlying stock is experiencing downward pressure but where volatility and event-driven catalysts could trigger sharp price movements.
Expiry Patterns and Short-Term Outlook
With the 29 September expiry imminent, the heavy call option activity suggests that market participants are positioning for a near-term directional move. The narrow trading range of just ₹0.9 on the day indicates subdued price action, but the option market is pricing in potential volatility. The liquidity of the stock, with a five-day average traded value supporting trade sizes of up to ₹21.41 crores, ensures that these option positions can be efficiently executed and adjusted.
Investors should monitor the stock’s ability to break above the key resistance levels near the strike prices of ₹1,020 and ₹1,040. A sustained move above these levels could validate the bullish option bets and potentially trigger short-covering or fresh buying interest. Conversely, failure to hold above the ₹1,000 mark may lead to a rapid unwinding of these positions, exacerbating downside pressure.
Conclusion: A Cautious Bullish Stance Amidst Weakness
Infosys Ltd’s current option market dynamics reveal a cautious but discernible bullish stance among traders, despite the stock’s recent underperformance and technical weakness. The elevated call option volumes and open interest at strikes above the current price reflect expectations of a near-term recovery or volatility-driven rally ahead of the expiry on 29 September 2026.
Given the stock’s proximity to its 52-week low and the prevailing downtrend, investors should weigh these option market signals alongside fundamental factors and broader sector trends. The recent upgrade in Mojo Grade to Hold and the attractive dividend yield provide some support, but the technical backdrop remains challenging. Close monitoring of price action around the key strike prices will be essential for assessing the sustainability of the bullish positioning in the coming sessions.
