Robust Call Option Activity Highlights Investor Confidence
On 3 February 2026, Infosys witnessed a remarkable volume of 8,179 call option contracts traded at the ₹1700 strike price, generating a turnover of approximately ₹939.28 lakhs. The open interest for these contracts stands at 6,214, indicating sustained interest and potential accumulation by market participants. This level of activity is significant given the underlying stock price of ₹1,668.70, suggesting that traders are positioning for a meaningful upside in the coming weeks.
The expiry date of 24 February 2026 is less than three weeks away, which often intensifies option trading as investors seek to capitalise on anticipated price movements. The concentration of call options at the ₹1700 strike price, just above the current market price, underscores a moderately bullish outlook, with traders expecting the stock to breach this level before expiry.
Price Performance and Technical Strength Bolster Optimism
Infosys outperformed its sector peers and the broader market on 3 February, delivering a 2.09% gain that surpassed the IT - Software sector’s 2.11% rise and the Sensex’s 2.56% advance. The stock opened with a notable 6% gap up and touched an intraday high of ₹1,728, marking a 6.05% increase from the previous close. This strong price action reflects positive sentiment and momentum among investors.
Technically, Infosys is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained uptrend. Such alignment of moving averages typically attracts further buying interest, reinforcing the bullish narrative. However, it is worth noting that delivery volumes have declined by 14.13% compared to the five-day average, which may indicate some caution among long-term holders despite the rally.
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Fundamental and Market Context Supporting the Bullish Stance
Infosys, a leader in the Computers - Software & Consulting industry, boasts a substantial market capitalisation of ₹6,60,507 crores, categorising it firmly as a large-cap stock. The company’s recent upgrade from a Hold to a Buy rating by MarketsMOJO on 22 December 2025, accompanied by a Mojo Score of 70.0, further validates the positive outlook. This upgrade reflects improved fundamentals, growth prospects, and valuation metrics that appeal to investors seeking quality large-cap exposure.
The stock’s Market Cap Grade of 1 indicates its dominant position and liquidity in the market, making it a preferred choice for institutional and retail investors alike. Liquidity metrics reveal that the stock can comfortably handle trade sizes up to ₹24.7 crores based on 2% of the five-day average traded value, ensuring smooth execution for sizeable orders.
Sectoral Trends and Broader Market Influence
The IT - Software sector has been on an upswing, gaining 2.11% on the day, buoyed by strong earnings reports and positive macroeconomic indicators. Infosys’s outperformance relative to its sector peers by 0.45% highlights its leadership and resilience amid competitive pressures. The broader Sensex index’s 2.56% gain on the same day reflects a generally favourable market environment, which is likely to support further gains in Infosys’s share price.
Despite the positive momentum, investors should remain mindful of the recent dip in delivery volumes, which may signal some profit-booking or cautious positioning ahead of upcoming corporate announcements or macroeconomic data releases.
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Implications for Investors and Traders
The heightened call option activity at the ₹1700 strike price, combined with Infosys’s strong price momentum and upgraded rating, suggests that market participants are positioning for a potential rally in the near term. Traders may view this as an opportunity to capitalise on expected upside, while long-term investors could interpret the developments as confirmation of the company’s improving fundamentals and growth trajectory.
However, the proximity of the option expiry date means that volatility could increase, and investors should monitor price movements closely. The stock’s ability to sustain levels above key moving averages will be critical in maintaining bullish momentum. Additionally, any sectoral or macroeconomic headwinds could temper gains, underscoring the importance of a balanced approach.
Conclusion
Infosys Ltd’s dominant position in the call options market, particularly at the ₹1700 strike price expiring on 24 February 2026, reflects a clear bullish sentiment among investors. Supported by strong price performance, technical strength, and an upgraded Mojo Grade to Buy, the stock is well poised for further gains in the short term. While delivery volume trends warrant cautious observation, the overall market and sectoral backdrop remain favourable for Infosys as it continues to attract investor interest.
For investors seeking exposure to a large-cap IT leader with solid fundamentals and positive market momentum, Infosys presents a compelling proposition backed by data-driven insights and expert analysis.
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