Call Option Trading Overview
On 4 March 2026, Infosys witnessed heavy call option activity with three strike prices dominating the market: ₹1,300, ₹1,320, and ₹1,400. The most actively traded call option was at the ₹1,300 strike, with 5,558 contracts exchanged, generating a turnover of ₹1266.11 lakhs. This was closely followed by the ₹1,400 strike, which saw 4,845 contracts traded, amounting to ₹314.93 lakhs in turnover. The ₹1,320 strike also attracted significant interest with 3,397 contracts traded and a turnover of ₹626.68 lakhs.
Open interest data further underscores the bullish positioning. The ₹1,400 strike boasts the highest open interest of 11,664 contracts, indicating strong investor conviction in the stock moving above this level by expiry. The ₹1,300 and ₹1,320 strikes hold open interests of 6,218 and 3,009 contracts respectively, suggesting layered bullish bets across these price points.
Underlying Stock Performance and Technical Context
Infosys closed at ₹1,314 on the day, marginally below the ₹1,320 strike but comfortably above the ₹1,300 level. The stock is trading approximately 3.46% above its 52-week low of ₹1,264.1, signalling a potential base formation. Intraday, the stock touched a high of ₹1,315.6, outperforming its sector by 1.51% and the broader Sensex, which declined by 1.89% on the same day.
Technical indicators present a mixed picture. The stock is trading above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages, indicating short-term strength amid longer-term resistance. Delivery volumes have declined sharply by 64.28% compared to the 5-day average, suggesting cautious investor participation despite the uptick in option activity.
Infosys’s market capitalisation stands at a robust ₹5,22,395 crores, classifying it as a large-cap stock with a Market Cap Grade of 1. The company’s current Mojo Score is 57.0, reflecting a Hold rating, a downgrade from its previous Buy grade on 9 February 2026. This adjustment reflects tempered expectations amid mixed technical signals and sector headwinds.
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Investor Sentiment and Expiry Dynamics
The concentration of call option volumes at strikes above the current price suggests that traders are positioning for a potential upside move in Infosys over the next month. The 30 March 2026 expiry date is less than a month away, making these options particularly sensitive to near-term price movements and volatility.
Notably, the ₹1,400 strike price, which is roughly 6.5% above the current market price, has attracted the highest open interest. This indicates that a significant number of investors expect the stock to breach this level by expiry, signalling confidence in a bullish breakout. The substantial turnover at the ₹1,300 strike also points to a strong support zone, with traders hedging or speculating on the stock holding above this level.
Despite the bullish option positioning, the stock’s recent downgrade to a Hold rating by MarketsMOJO reflects caution. The Mojo Grade change on 9 February 2026 was driven by a reassessment of growth prospects and valuation metrics amid a challenging macroeconomic environment for the IT sector.
Dividend Yield and Liquidity Considerations
Infosys offers a healthy dividend yield of 3.58% at the current price, which may appeal to income-focused investors amid market volatility. Liquidity remains strong, with the stock’s average traded value supporting trade sizes up to ₹48.21 crores based on 2% of the 5-day average traded value. This liquidity profile supports active trading in both the cash and derivatives segments.
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Outlook and Strategic Implications for Investors
The active call option market in Infosys suggests that traders are positioning for a potential rebound in the near term, with strike prices clustered around key technical levels. The elevated open interest at the ₹1,400 strike price signals optimism for a breakout above recent resistance, while the strong activity at ₹1,300 and ₹1,320 indicates a firm support base.
However, investors should weigh this bullish derivatives activity against the company’s Hold rating and the broader sector challenges. The IT sector continues to face headwinds from global economic uncertainties and currency fluctuations, which could impact earnings growth and stock performance.
For long-term investors, the dividend yield and large-cap stability of Infosys remain attractive, but caution is warranted given the recent downgrade and technical resistance levels. Traders with a shorter time horizon may find opportunities in the options market to capitalise on expected volatility and directional moves ahead of the March expiry.
Summary
Infosys Ltd’s call option market activity reveals a nuanced picture of investor sentiment. While the derivatives market is signalling bullish expectations for a price recovery above ₹1,400 by the end of March, the underlying stock’s technical indicators and recent rating downgrade counsel prudence. The stock’s liquidity, dividend yield, and large-cap status continue to make it a key focus for both traders and investors navigating the evolving IT sector landscape.
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