Infosys Ltd Sees Robust Call Option Activity Ahead of March Expiry

Robust Call Option Volumes and Strike Price Concentration

Data from the options market reveals that call options with strike prices ranging from ₹1300 to ₹1400 have attracted significant trading interest. The most actively traded call option is the ₹1300 strike, with 8,035 contracts exchanged, generating a turnover of ₹1,939.3 lakhs and an open interest of 6,028 contracts. Close behind is the ₹1400 strike call, which saw 7,752 contracts traded, turnover of ₹645.6 lakhs, and a substantial open interest of 12,038 contracts, the highest among the strikes analysed.

Other notable strikes include ₹1360 with 3,587 contracts traded and ₹1340 with 2,826 contracts, both expiring on 30 March 2026. The underlying stock price currently stands at ₹1,306, placing these strike prices in the near-the-money to slightly out-of-the-money range, indicating traders are positioning for a price appreciation beyond current levels within the next month.

Expiry Patterns and Open Interest Implications

The concentration of open interest at the ₹1400 strike, which is approximately 7.1% above the current market price, suggests a strong bullish bias among option traders. The elevated open interest at this strike price often acts as a magnet for price movement as expiry approaches, potentially creating a support zone or a target level for the underlying stock. Meanwhile, the ₹1300 strike, just below the current price, also holds significant open interest, indicating hedging or profit-taking activity by investors who may be locking in gains or protecting downside risk.

Overall, the total open interest across these call strikes reflects a robust derivatives market participation, with traders anticipating a positive directional move in Infosys shares over the coming weeks.

Stock Price Context and Technical Indicators

Infosys shares closed recently at ₹1,306, recovering from a five-day losing streak with a day’s gain of 3.25%. The stock remains close to its 52-week low of ₹1,264.1, just 2.94% away, signalling that it is trading near a significant support level. Despite this, the stock is currently below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a prevailing bearish trend in the short to medium term.

However, the recent uptick in price and the strong call option activity suggest that investors are anticipating a reversal or at least a consolidation phase. The IT software sector, in which Infosys operates, has gained 2.11% recently, outperforming the Sensex’s 0.57% rise, which may be providing additional sectoral tailwinds.

Fundamental and Market Sentiment Overview

Infosys is a large-cap company with a market capitalisation of ₹5,17,691 crores and operates in the Computers - Software & Consulting industry. Its current Mojo Score stands at 57.0, reflecting a Hold rating, which was downgraded from Buy on 9 February 2026. The downgrade reflects a cautious stance amid mixed technical signals and sector dynamics.

The stock offers a dividend yield of 3.61%, which is attractive in the current market environment and may support investor interest. Additionally, delivery volumes have surged by 120.72% compared to the five-day average, indicating rising investor participation and confidence in the stock’s near-term prospects.

Implications for Investors and Traders

The heavy call option activity at strikes above the current market price suggests that traders are positioning for a potential rally in Infosys shares before the March expiry. The significant open interest at ₹1400 strike price may act as a psychological target, with the stock needing to gain approximately 7% from current levels to reach this mark.

Investors should monitor the stock’s price action closely, especially in relation to key moving averages and sector performance. A sustained move above the 20-day and 50-day averages could confirm a trend reversal and validate the bullish option positioning. Conversely, failure to break resistance levels may lead to profit booking and a return to the lower trading range.

Outlook and Strategic Considerations

With the expiry date of 30 March 2026 approaching, the options market activity in Infosys provides valuable insight into investor expectations. The concentration of call option open interest at strikes above the current price suggests a cautiously optimistic outlook, with traders betting on a recovery or positive catalysts emerging in the near term.

Given the stock’s proximity to its 52-week low and the recent rebound after a prolonged decline, investors may consider this an opportune moment to reassess their positions. The combination of attractive dividend yield, improving sector momentum, and rising investor participation supports a constructive medium-term view, albeit tempered by the current Hold rating and technical resistance levels.

Traders should remain vigilant for volatility spikes and monitor open interest changes, which can signal shifts in market sentiment. The interplay between strike prices, expiry dynamics, and underlying price movement will be critical in shaping the stock’s trajectory over the coming weeks.

Summary

Infosys Ltd’s call option market activity ahead of the March expiry reveals a strong bullish tilt, with significant volumes and open interest clustered around ₹1300 to ₹1400 strike prices. Despite trading below key moving averages and near its 52-week low, the stock has shown signs of recovery, supported by sector gains and increased investor participation. The Hold rating with a Mojo Score of 57.0 reflects a balanced view, encouraging investors to watch for confirmation of trend reversal before committing to fresh positions.

Overall, the derivatives data combined with fundamental and technical factors suggest that Infosys remains a stock to watch closely in the coming weeks, with the potential for meaningful price action as expiry approaches.

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