Infosys Ltd Sees Robust Call Option Activity Ahead of March Expiry

Robust Call Option Volumes Signal Investor Interest

Data from the derivatives market reveals that Infosys call options with expiry on 30 March 2026 have seen significant turnover and open interest, particularly at strike prices ranging from ₹1,300 to ₹1,400. The most actively traded call option is at the ₹1,300 strike, with 6,412 contracts changing hands, generating a turnover of ₹1576.33 lakhs and an open interest of 6,550 contracts. This is closely followed by the ₹1,400 strike, which recorded 5,805 contracts traded and an exceptionally high open interest of 13,406 contracts, indicating strong investor conviction at this higher strike level.

Other notable strikes include ₹1,320 with 4,699 contracts traded (turnover ₹940.74 lakhs, open interest 3,174) and ₹1,340 with 3,896 contracts traded (turnover ₹638.48 lakhs, open interest 3,859). The ₹1,360 strike also attracted 2,384 contracts with a turnover of ₹310.11 lakhs and open interest of 3,914 contracts. This distribution of activity suggests a broad-based bullish positioning, with investors betting on a potential upward move beyond the current market price.

Stock Performance and Technical Context

Infosys closed the day with a gain of 1.48%, outperforming the Sensex which declined by 0.54%. The stock opened with a gap up of 2.89% and touched an intraday high of ₹1,335, marking a 3.56% rise from the previous close. Despite this positive momentum, the share price remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling that the broader trend is still under pressure.

Investor participation appears to be waning, with delivery volumes on 26 February falling by 47.63% compared to the 5-day average, suggesting some hesitation among long-term holders. However, the stock offers a relatively attractive dividend yield of 3.58%, which may provide some support amid the recent price softness.

Fundamental and Market Positioning

Infosys, a large-cap leader in the Computers - Software & Consulting sector, holds a market capitalisation of ₹5,22,882 crores. The company’s Mojo Score currently stands at 57.0, with a Mojo Grade of Hold, downgraded from Buy on 9 February 2026. This reflects a cautious stance from analysts, balancing the company’s solid fundamentals against near-term headwinds and sectoral challenges.

The stock’s liquidity remains robust, with the ability to handle trade sizes up to ₹44.89 crores based on 2% of the 5-day average traded value, making it a viable option for institutional investors and traders alike.

Expiry Patterns and Strike Price Distribution

The concentration of open interest at the ₹1,400 strike price, which is approximately 7.1% above the current underlying value, suggests that traders are anticipating a meaningful rally in the coming month. The high open interest at this strike also implies potential resistance or a key price level to watch as expiry approaches.

Meanwhile, the ₹1,300 strike, just below the current market price, shows the highest number of contracts traded, indicating that many investors are hedging or speculating on a near-term consolidation or slight upward move. The spread of activity across the ₹1,320, ₹1,340, and ₹1,360 strikes further confirms a layered approach to bullish positioning, with traders seeking to capitalise on incremental gains.

Investor Sentiment and Market Implications

The surge in call option volumes and open interest at multiple strikes ahead of the March expiry reflects a growing optimism among market participants about Infosys’s near-term prospects. This is despite the stock’s recent downgrade to a Hold rating by MarketsMOJO, which underscores the nuanced view analysts hold given sectoral pressures and valuation concerns.

Investors should note that while the call option activity signals bullish sentiment, the stock’s technical indicators remain subdued, and falling delivery volumes suggest some caution among long-term holders. The dividend yield of 3.58% may continue to attract income-focused investors, but price appreciation will likely depend on broader market trends and company-specific catalysts.

Strategic Outlook for Traders and Investors

For traders, the current call option activity presents opportunities to capitalise on potential upward price movements in Infosys over the next month. The liquidity and volume at key strikes provide ample scope for entering and exiting positions with relative ease. However, given the stock’s position below major moving averages and the recent downgrade, a cautious approach with defined risk management is advisable.

Long-term investors should weigh the company’s solid market capitalisation and dividend yield against the current technical weakness and sectoral challenges. The Hold rating from MarketsMOJO suggests that while the stock is not an outright sell, it may not offer significant upside in the near term compared to other large-cap peers.

Monitoring the evolution of open interest and price action as the 30 March expiry approaches will be critical to gauge whether the bullish sentiment in options translates into sustained price gains.

Conclusion

Infosys Ltd’s recent surge in call option volumes and open interest ahead of the March 2026 expiry highlights a cautiously optimistic market outlook. While the stock has shown resilience with a 1.48% gain on the day and a strong dividend yield, technical indicators and analyst ratings counsel prudence. Investors and traders should closely monitor strike price activity and expiry dynamics to navigate the evolving landscape effectively.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today