Strong Call Option Volumes Signal Bullish Sentiment
On 11 September 2026, Infosys recorded substantial call option activity with three key strike prices dominating the market: ₹1,040, ₹1,060, and ₹1,100. The underlying stock closed at ₹1,042.50, indicating that the ₹1,040 strike is slightly in-the-money, while the other two are out-of-the-money but attracting considerable interest.
The ₹1,040 call options saw 5,431 contracts traded, generating a turnover of approximately ₹63.2 crores and an open interest of 6,436 contracts. Meanwhile, the ₹1,060 strike attracted 6,077 contracts with a turnover of ₹47.96 crores and an open interest of 7,251 contracts. The most notable activity was at the ₹1,100 strike, where 6,369 contracts changed hands, turnover stood at ₹22.39 crores, and open interest surged to 13,929 contracts.
This concentration of open interest at higher strike prices, especially ₹1,100, indicates that traders are positioning for a potential upside move in Infosys shares over the coming weeks. The elevated open interest at this strike suggests a strong speculative or hedging interest, reflecting expectations that the stock could breach this level before expiry.
Expiry Patterns and Market Context
The 29 September 2026 expiry is the nearest monthly expiry, and the heightened activity in call options is typical as traders adjust their positions in anticipation of quarterly earnings updates and broader sectoral developments. Infosys, being a bellwether in the Computers - Software & Consulting sector, often sees its options activity influenced by global IT spending trends and domestic market sentiment.
Despite the bullish positioning in options, the stock’s technical indicators present a mixed picture. Infosys is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling some near-term resistance. However, the stock has gained 0.58% over the last two days, suggesting a tentative recovery attempt.
Stock Performance and Sector Comparison
On the day of analysis, Infosys delivered a 0.55% gain, outperforming the sector’s modest 0.11% rise and contrasting with the broader Sensex’s 1.01% decline. This relative strength underscores the stock’s defensive appeal amid broader market volatility.
Investor participation has also increased, with delivery volumes rising by 9.46% to 54.1 lakh shares on 10 September compared to the five-day average. This uptick in delivery volume indicates genuine buying interest rather than purely speculative trading.
Dividend Yield and Liquidity Considerations
Infosys offers a healthy dividend yield of 4.71% at the current price level, which adds to its attractiveness for income-focused investors. The stock’s liquidity remains robust, with average traded value supporting trade sizes up to ₹18.96 crores comfortably, ensuring that institutional investors can enter or exit positions without significant market impact.
Mojo Score and Analyst Ratings
According to MarketsMOJO, Infosys holds a Mojo Score of 60.0, categorised as a 'Hold' rating. This represents an upgrade from a previous 'Sell' grade on 13 April 2026, reflecting improved fundamentals and market positioning. The large-cap status of Infosys further supports its role as a core portfolio holding for many investors.
Implications for Investors
The pronounced call option activity at strike prices above the current market level suggests that traders are positioning for a moderate upside in Infosys shares over the next few weeks. While technical indicators advise caution due to the stock trading below key moving averages, the combination of rising delivery volumes, dividend yield, and relative outperformance versus the sector and Sensex provides a balanced outlook.
Investors should monitor the evolving open interest and volume patterns in the options market as a barometer of sentiment, especially as the 29 September expiry approaches. The concentration of open interest at ₹1,100 strike price is a critical level to watch, as a sustained move above this could trigger further bullish momentum.
Sectoral and Macro Considerations
Infosys operates in the Computers - Software & Consulting sector, which remains sensitive to global IT budgets, currency fluctuations, and geopolitical developments. Any positive developments in these areas could reinforce the bullish positioning seen in the options market. Conversely, adverse macroeconomic factors could temper gains and increase volatility.
Conclusion
In summary, Infosys Ltd is currently the focal point of active call option trading, with significant volumes and open interest concentrated at strike prices suggesting a cautiously optimistic market stance. The stock’s recent gains, improved analyst grading, and solid dividend yield complement this view, although technical resistance levels warrant careful monitoring. Investors seeking exposure to the IT sector should consider these dynamics as part of their broader portfolio strategy ahead of the September expiry.
