Strong Call Option Volumes Concentrated Near Current Price
Data from the derivatives market reveals that Infosys call options with strike prices of ₹1100, ₹1120, ₹1130, and ₹1150 have witnessed significant trading activity ahead of the expiry on 26 May 2026. The most actively traded call option is at the ₹1120 strike, with 8,279 contracts exchanged, generating a turnover of approximately ₹770.28 lakhs and an open interest of 2,980 contracts. Close behind, the ₹1100 strike call saw 6,071 contracts traded with a turnover of ₹811.81 lakhs and open interest of 2,795 contracts.
The ₹1150 strike call option, which is slightly out-of-the-money given the underlying stock price of ₹1125.7, recorded 5,758 contracts traded and an open interest of 4,644 contracts, indicating a strong speculative interest in a price rally beyond this level. Similarly, the ₹1130 strike call option saw 5,737 contracts traded with turnover of ₹450.70 lakhs and open interest of 3,046 contracts.
Underlying Stock Performance and Technical Context
Infosys closed the day at ₹1125.7, up 3.21% on 15 May 2026, outperforming its sector by 0.75% and the broader Sensex by 2.78%. The stock touched an intraday high of ₹1130.9, signalling renewed buying interest after four consecutive days of decline. Despite this uptick, the share price remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting that the stock is still in a consolidation phase and has yet to confirm a sustained trend reversal.
Notably, Infosys is trading just 3.2% above its 52-week low of ₹1089, highlighting the recent weakness in the stock. However, rising investor participation is evident from the delivery volume of 1 crore shares on 14 May, which surged by 73.14% compared to the five-day average, indicating growing conviction among long-term holders.
Sectoral and Market Backdrop
The IT - Software sector has gained 2.1% on the day, outperforming the Sensex’s 0.43% rise, reflecting a broader positive sentiment in technology stocks. Infosys, as a large-cap heavyweight with a market capitalisation of ₹4,44,334 crores, remains a bellwether for the sector. Its current Mojo Score of 57.0 and upgraded Mojo Grade from Sell to Hold on 13 April 2026 suggest cautious optimism among analysts, balancing the stock’s recent underperformance with its strong fundamentals and dividend yield of 4.21%.
Implications of Call Option Activity
The concentration of call option trades at strike prices close to and slightly above the current market price indicates that traders are positioning for a moderate upside in Infosys shares over the coming weeks. The high open interest at the ₹1150 strike, in particular, points to expectations of a breakout beyond this resistance level. This bullish positioning is further supported by the sizeable turnover in these contracts, reflecting active participation from institutional and retail investors alike.
Such activity often precedes significant price movements, as option traders hedge their positions or speculate on directional moves. The expiry date of 26 May 2026 is a critical juncture, and the market will closely watch whether Infosys can sustain gains and breach key technical levels to validate the optimism embedded in the options market.
Liquidity and Trading Considerations
Infosys’s liquidity remains robust, with the stock’s average traded value supporting trade sizes of up to ₹26.73 crores based on 2% of the five-day average traded value. This ensures that both spot and derivatives market participants can execute sizeable trades without significant price impact, an important factor for institutional investors monitoring the stock’s options activity.
Outlook and Strategic Takeaways for Investors
While the recent technical indicators suggest that Infosys is still navigating a consolidation phase, the surge in call option volumes and open interest near the current price level signals growing bullish sentiment. Investors should monitor the stock’s ability to surpass the ₹1150 resistance mark, which could trigger further upside momentum.
Given the stock’s attractive dividend yield and large-cap status, it remains a core holding for many portfolios, but the current Mojo Grade of Hold advises a measured approach. Traders looking to capitalise on the options market activity may consider strategies aligned with moderate bullishness, such as buying calls near the ₹1120-₹1130 strikes or employing spreads to manage risk ahead of expiry.
Overall, the interplay between the underlying stock’s technical setup and the derivatives market’s positioning offers valuable insights into Infosys’s near-term trajectory, making it a focal point for market participants as expiry approaches.
