Infosys Ltd Sees Robust Call Option Activity Ahead of March Expiry

Strong Call Option Volumes Signal Investor Optimism

Data from the derivatives market reveals that Infosys call options with strike prices ranging from ₹1300 to ₹1400 have witnessed significant trading volumes and open interest. The most active strike is ₹1400, with 5,610 contracts traded and an open interest of 13,419 contracts, reflecting substantial investor interest in upside potential above the current underlying value of ₹1312.3.

Close behind, the ₹1300 strike call options saw 4,800 contracts traded with an open interest of 6,552, while the ₹1320 strike recorded 4,354 contracts traded and 3,172 open interest. The ₹1340 and ₹1360 strikes also attracted notable activity, with 2,121 and 1,931 contracts traded respectively.

The turnover figures further underscore the scale of activity, with the ₹1300 strike generating ₹1096.7 lakhs in turnover and the ₹1320 strike ₹816.6 lakhs. The ₹1400 strike, despite a higher strike price, amassed ₹412.9 lakhs in turnover, indicating a strong speculative or hedging interest at this level.

Expiry Patterns and Market Sentiment

All these call options are set to expire on 30 March 2026, suggesting that traders are positioning themselves for a potential rally in Infosys over the next month. The concentration of open interest at strikes above the current market price points to a predominantly bullish sentiment, with investors anticipating a price recovery or breakout beyond ₹1400.

However, it is important to note that Infosys is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a prevailing downtrend in the short to medium term. The stock is also just 3.03% away from its 52-week low of ₹1264.1, which may temper overly optimistic expectations.

Stock Performance and Market Context

On 26 February 2026, Infosys closed with a gain of 1.47%, outperforming the sector return of 1.12% and the Sensex’s modest 0.24% rise. The stock has recorded consecutive gains over the past two days, delivering a 2.2% return in this period, signalling some short-term buying interest.

Despite this, investor participation appears to be waning, with delivery volumes on 25 February falling by 10.98% compared to the five-day average. This decline in delivery volume suggests cautiousness among long-term investors, even as speculative activity in options intensifies.

Infosys continues to offer a relatively attractive dividend yield of 3.57% at current prices, which may appeal to income-focused investors amid the stock’s recent weakness.

Mojo Score and Analyst Ratings

Infosys currently holds a Mojo Score of 57.0, categorised as a 'Hold' grade, a downgrade from its previous 'Buy' rating as of 9 February 2026. This reflects a cautious stance by analysts, likely influenced by the stock’s recent technical weakness and subdued investor participation.

The company’s market capitalisation stands at a robust ₹5,23,287 crores, firmly placing it in the large-cap segment within the Computers - Software & Consulting sector. Despite the downgrade, the stock’s liquidity remains strong, with an average traded value sufficient to support trade sizes of approximately ₹47.08 crores, ensuring ease of entry and exit for institutional investors.

Implications for Investors and Traders

The heavy call option activity at strikes above the current market price suggests that traders are positioning for a rebound in Infosys over the coming weeks. The concentration of open interest at ₹1400 strike price, more than 8% above the current underlying value, indicates expectations of a meaningful upside move.

However, the technical backdrop advises caution. The stock’s position below all major moving averages and proximity to its 52-week low highlight the risk of further downside or consolidation. Investors should weigh the bullish option positioning against these technical signals and the recent decline in delivery volumes.

For those considering exposure, a balanced approach involving partial allocation or hedged strategies may be prudent until clearer directional cues emerge.

Sector and Market Outlook

The Computers - Software & Consulting sector has shown resilience amid broader market volatility, with Infosys being a bellwether stock. The sector’s performance today, with a 1.12% gain, outpaced the Sensex’s 0.24% rise, reflecting investor preference for technology and consulting firms as growth engines.

Infosys’ recent price action and option market dynamics suggest that while the stock faces near-term headwinds, there remains a contingent of investors betting on a recovery. This divergence between technical weakness and bullish options positioning is a key factor for market participants to monitor closely.

Conclusion

Infosys Ltd’s call option market activity ahead of the 30 March 2026 expiry reveals a strong bullish tilt among traders, with significant volumes and open interest concentrated at strikes above the current market price. While this indicates optimism for a price rebound, the stock’s technical indicators and declining delivery volumes counsel prudence.

Investors should consider these mixed signals carefully, balancing the potential for upside against the risks of continued consolidation or weakness. Monitoring upcoming earnings, sector trends, and broader market conditions will be essential to gauge the sustainability of the current bullish sentiment.

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