Infosys Ltd Sees Robust Call Option Activity Amid Bearish Price Momentum

Robust Call Option Volumes Signal Bullish Positioning

Data from the options market reveals that Infosys call options expiring on 24 February 2026 have attracted significant interest, with total contracts traded running into tens of thousands across key strike prices. The most active strike was Rs 1,400, where 10,598 contracts changed hands, generating a turnover of approximately ₹21.28 crores. This strike also holds the highest open interest at 14,374 contracts, indicating strong ongoing bullish bets at this level.

Other notable strikes include Rs 1,380 with 7,158 contracts traded and Rs 1,420 with 6,028 contracts, reflecting a broad-based call buying strategy in the Rs 1,340 to Rs 1,440 range. The Rs 1,440 strike, despite a lower turnover of ₹3.63 crores, maintains a substantial open interest of 8,711 contracts, underscoring investor anticipation of a price move above this level in the near term.

The underlying stock price of Infosys currently stands at Rs 1,351.4, which places the Rs 1,340 and Rs 1,380 strikes near or slightly out-of-the-money, while the Rs 1,400 and Rs 1,420 strikes are moderately out-of-the-money. The concentration of call option activity at these strikes suggests traders are positioning for a potential upside move in the coming days.

Price Performance and Technical Context

Infosys shares have underperformed the broader sector, declining by 1.39% on the day compared to the sector’s 0.63% fall and the Sensex’s marginal 0.07% gain. The stock has been on a three-day losing streak, shedding 2.75% over this period, and touched an intraday low of Rs 1,338.2, down 2.36% from the previous close.

Technically, Infosys is trading below its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a bearish short- to medium-term trend. Additionally, investor participation appears to be waning, with delivery volumes on 19 February falling by 51.42% against the five-day average, suggesting reduced conviction among long-term holders.

Despite these headwinds, the stock offers a relatively attractive dividend yield of 3.37%, which may provide some support to the price in the near term. Liquidity remains robust, with the stock capable of handling trade sizes up to ₹69.71 crores based on 2% of the five-day average traded value.

Mojo Score Downgrade Reflects Caution

MarketsMOJO’s latest assessment downgraded Infosys from a Buy to a Hold rating on 9 February 2026, reflecting a more cautious outlook amid recent price weakness and sector headwinds. The company’s Mojo Score currently stands at 57.0, indicating moderate quality and growth prospects. The Market Cap Grade remains at 1, consistent with its large-cap status and strong market presence.

This downgrade aligns with the technical signals and subdued investor participation, suggesting that while the stock remains fundamentally sound, near-term upside may be limited without a catalyst to reverse the downtrend.

Expiry Patterns and Implications for Traders

The concentration of call option activity ahead of the 24 February expiry is typical as traders adjust positions and speculate on short-term price movements. The high open interest at strikes above the current market price indicates that many investors are betting on a rebound or a breakout beyond Rs 1,400 in the coming week.

However, the relatively high number of contracts traded at the Rs 1,340 strike – close to the current price – also suggests some hedging or profit-taking strategies among option writers. This mixed activity points to a market that is cautiously optimistic but aware of the recent downtrend risks.

Sector and Market Context

Infosys operates within the Computers - Software & Consulting sector, which has seen mixed performance recently amid global macroeconomic uncertainties and evolving IT spending patterns. The sector’s 1-day return of -0.63% contrasts with the Sensex’s slight gain, highlighting sector-specific pressures that may be weighing on Infosys shares.

Given its large market capitalisation of ₹5,55,328 crores, Infosys remains a bellwether stock for the Indian IT industry. Its performance often reflects broader investor sentiment towards technology and consulting services, making the current option market activity a valuable barometer of expectations.

Investor Takeaway

For investors and traders, the current surge in Infosys call option volumes ahead of the February expiry offers a mixed signal. On one hand, the heavy call buying at strikes above Rs 1,400 suggests optimism for a price recovery or breakout. On the other, the stock’s recent underperformance, technical weakness, and reduced delivery volumes counsel caution.

Those bullish on Infosys may view the option activity as confirmation of a potential rebound, especially given the stock’s attractive dividend yield and large-cap stability. Conversely, more conservative investors might prefer to wait for a clear technical turnaround or positive sector developments before increasing exposure.

Ultimately, the options market provides a nuanced insight into trader expectations, highlighting both speculative interest and hedging strategies as the expiry date nears.

Looking Ahead

As the 24 February expiry approaches, market participants will closely monitor Infosys’s price action and option open interest changes for clues on directional bias. Any significant move above Rs 1,400 could trigger further call buying and a shift in sentiment, while failure to hold near current levels may lead to profit-taking and increased volatility.

Investors should also consider broader sector trends and global IT spending outlooks, which remain key drivers for Infosys’s medium- to long-term performance.

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