Strong Call Option Volumes Reflect Investor Confidence
On 29 July 2026, Infosys recorded substantial call option volumes concentrated around strike prices ranging from ₹1,100 to ₹1,200, all expiring on 25 August 2026. The most actively traded call was at the ₹1,200 strike, with 10,628 contracts changing hands, generating a turnover of ₹770.74 lakhs and an open interest of 5,048 contracts. This was closely followed by the ₹1,140 strike, which saw 8,950 contracts traded with a turnover of ₹1,541.91 lakhs and open interest of 3,307 contracts.
Other notable strikes included ₹1,160 with 4,830 contracts traded (turnover ₹630.41 lakhs, open interest 2,996) and ₹1,155 with 4,693 contracts (turnover ₹669.60 lakhs, open interest 1,158). The ₹1,100 strike also attracted significant activity, with 4,109 contracts traded and turnover of ₹1,125.87 lakhs, supported by an open interest of 12,450 contracts.
The underlying stock price stood at ₹1,146.40, indicating that the majority of call option activity was clustered near and slightly above the current market price, suggesting a bullish outlook among traders anticipating further upside in the near term.
Price Momentum and Technical Indicators Support Bullish Sentiment
Infosys has outperformed its sector peers, gaining 3.87% on the day compared to the IT software sector’s 2.37% rise and the Sensex’s 0.91% advance. The stock has recorded a three-day consecutive gain, delivering a cumulative return of 9.77% during this period. It opened with a gap-up of 3.74% and touched an intraday high of ₹1,152, marking a 4.19% increase from the previous close.
Technically, the stock is trading above its 5-day, 20-day, and 50-day moving averages, although it remains below the 100-day and 200-day averages. This positioning indicates short- to medium-term strength, while longer-term trends may require further confirmation. The rising delivery volume of 1.69 crore shares on 28 July, an 86.43% increase over the five-day average, further highlights growing investor participation and conviction.
Fundamental Metrics and Market Positioning
Infosys is classified as a large-cap company with a market capitalisation of ₹4,48,667 crore. The company’s current dividend yield stands at a healthy 4.39%, adding to its appeal for income-focused investors. The stock’s liquidity is robust, with a trade size capacity of approximately ₹42.9 crore based on 2% of the five-day average traded value, ensuring ease of entry and exit for institutional and retail participants alike.
MarketsMOJO assigns Infosys a Mojo Score of 60.0 with a Hold grade, upgraded from a Sell rating on 13 April 2026. This reflects a cautious but improving outlook, balancing the company’s solid fundamentals against near-term market uncertainties.
Expiry Patterns and Implications for Investors
The concentration of call option activity around the 25 August 2026 expiry suggests that market participants are positioning for potential price appreciation over the next month. The clustering of open interest at strikes slightly above the current price indicates expectations of moderate upside, with the ₹1,200 strike serving as a key resistance level to watch.
Investors should note that while high call option volumes often signal bullish sentiment, they can also reflect hedging strategies or speculative positioning. The elevated open interest at the ₹1,100 strike, which is slightly below the current market price, may indicate some defensive positioning or profit-taking at that level.
Sectoral Context and Broader Market Trends
The IT software sector has gained 2.34% on the day, supported by positive earnings outlooks and robust demand for digital transformation services globally. Infosys’s outperformance relative to its sector peers highlights its leadership position and investor preference amid ongoing market rotation towards quality large caps.
Given the broader market’s cautious optimism, with the Sensex up 0.91%, Infosys’s strong call option activity and price momentum position it as a focal point for traders seeking exposure to the technology space with a favourable risk-reward profile.
Investor Takeaway
For investors and traders, the current option market dynamics around Infosys offer valuable insights into market expectations. The heavy call option volumes at strikes near and above the current price, combined with rising open interest and strong price action, suggest a consensus leaning towards further gains in the short term.
However, the Hold rating from MarketsMOJO and the stock’s position below longer-term moving averages counsel prudence. Investors should monitor upcoming earnings announcements, sector developments, and broader macroeconomic factors that could influence the stock’s trajectory ahead of the August expiry.
Overall, Infosys remains a key bellwether in the Indian IT sector, with its option market activity providing a timely barometer of investor sentiment and potential price direction.
