Surge in Call Option Volumes and Turnover
The most active call options for Infosys are concentrated around strike prices ranging from ₹1,180 to ₹1,300, all expiring on 26 May 2026. Notably, the 1,180 strike call saw the highest number of contracts traded at 13,088, generating a turnover of ₹1,245.45 lakhs and an open interest of 4,599 contracts. This is closely followed by the 1,190 strike call with 9,464 contracts traded and a turnover of ₹778.32 lakhs.
Other significant strikes include 1,220 (8,749 contracts, ₹351.36 lakhs turnover), 1,250 (7,444 contracts, ₹157.52 lakhs turnover), and 1,300 (7,085 contracts, ₹59.23 lakhs turnover). The underlying stock price currently stands at ₹1,193.40, indicating that the bulk of call activity is clustered near and slightly above the current market price, suggesting expectations of a moderate rally.
Market Context and Stock Performance
Infosys has outperformed its sector, the IT - Software segment, which gained 3.17% on the day, with a 4.25% return on 19 May 2026. The stock has been on a three-day winning streak, delivering a cumulative return of approximately 9% during this period. It touched an intraday high of ₹1,197.70, marking a 4.83% increase on the day.
Despite this short-term strength, the stock remains below its 50-day, 100-day, and 200-day moving averages, though it is trading above its 5-day and 20-day averages. This mixed technical picture suggests that while momentum is building, longer-term resistance levels remain to be tested.
Investor Participation and Liquidity Considerations
Delivery volumes have declined recently, with a drop of 18.91% against the five-day average, registering 62.68 lakh shares on 18 May 2026. However, liquidity remains adequate, with the stock’s traded value supporting sizeable trade sizes up to ₹33.26 crore based on 2% of the five-day average traded value. This liquidity profile supports active options trading and institutional participation.
Mojo Score and Analyst Ratings
Infosys currently holds a Mojo Score of 57.0, reflecting a Hold rating, an improvement from a previous Sell grade assigned on 13 April 2026. The company is classified as a large-cap stock with a market capitalisation of ₹4,63,314 crore. The upgrade in rating aligns with the recent price momentum and positive option market positioning, though caution remains warranted given the stock’s position relative to longer-term moving averages.
Implications of Call Option Activity
The concentration of call option trades at strike prices slightly above the current market price indicates that traders are positioning for a potential upside move in Infosys over the coming week. The high open interest at these strikes suggests that many investors are either initiating bullish bets or rolling forward existing positions to capitalise on expected gains.
Given the expiry date of 26 May 2026, these options will be closely watched for signs of price breakout or consolidation. The elevated turnover and contract volumes at the 1,180 and 1,190 strikes, in particular, highlight these levels as key near-term resistance points that the stock must overcome to sustain its rally.
Sector and Broader Market Comparison
While Infosys has outpaced the IT sector’s 3.17% gain on the day, the broader Sensex index posted a modest 0.32% return. This relative outperformance underscores the stock’s appeal amid a mixed market environment. The IT sector’s strength is supported by ongoing demand for software and consulting services, which bodes well for Infosys’s medium-term prospects.
Additionally, the company offers a dividend yield of 4.03%, which adds an income component attractive to long-term investors amid market volatility.
Outlook and Investor Considerations
Investors should monitor the stock’s ability to sustain gains above the 1,200 level, which would validate the bullish positioning evident in the options market. A decisive break above the 50-day moving average could trigger further buying interest and potentially elevate the Mojo Score beyond the current Hold rating.
However, the recent decline in delivery volumes signals some caution among investors, possibly reflecting profit-booking or selective participation. As such, a balanced approach is advisable, with attention to evolving technical signals and broader sector trends.
Overall, the robust call option activity ahead of the May expiry highlights growing optimism in Infosys’s near-term trajectory, supported by solid fundamentals and sector tailwinds.
