Robust Call Option Activity Highlights Bullish Sentiment
On 7 January 2026, Infosys recorded the most active call options volume among its peers, with 13,431 contracts traded for the 1640 strike price expiring on 27 January 2026. This activity generated a substantial turnover of ₹1982.95 lakhs, reflecting strong investor interest in leveraged bullish bets. The open interest at this strike stands at 6,876 contracts, indicating sustained positions rather than mere speculative intraday trades.
The underlying stock price was ₹1630.00 at the time, just shy of the 1640 strike, suggesting that traders are positioning for a near-term upside move above this level. The concentration of call options at this strike price is a classic indicator of market participants anticipating a breakout or sustained rally in the stock price before expiry.
Stock Performance and Technical Backdrop
Infosys has been on a positive trajectory, gaining 1.51% over the past two consecutive trading sessions. Despite underperforming its sector by 0.27% on the day, the stock remains resilient, trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — which collectively signal a strong technical foundation. This alignment of moving averages often attracts momentum traders and institutional investors, reinforcing the bullish narrative.
However, investor participation appears to be waning slightly, with delivery volume on 6 January falling by 26.73% compared to the five-day average. This dip in delivery volume could suggest some profit-booking or cautious positioning ahead of the expiry, even as option activity intensifies.
Market Capitalisation and Sector Context
Infosys commands a large market capitalisation of ₹6,59,208 crores, placing it firmly among the blue-chip stocks in the Computers - Software & Consulting sector. The sector itself has been performing well, with a 1-day return of 1.29%, outpacing the broader Sensex which declined by 0.31% on the same day. This relative strength in the sector supports the bullish case for Infosys, especially given its upgraded mojo grade from Hold to Buy on 22 December 2025.
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Implications of Strike Price and Expiry Patterns
The 1640 strike price call options being the most actively traded suggests that market participants expect Infosys to breach this level within the next three weeks. Given the current underlying price of ₹1630, this represents a modest upside of approximately 0.6%, which is achievable considering the stock’s recent momentum and technical strength.
Expiry on 27 January 2026 is a critical date, as option expiry weeks often bring heightened volatility and price discovery. Traders utilising call options at this strike are likely positioning for a short-term rally, possibly driven by upcoming earnings, sectoral developments, or broader market catalysts.
Mojo Score Upgrade and Market Sentiment
MarketsMOJO’s upgrade of Infosys from Hold to Buy on 22 December 2025, accompanied by a mojo score of 72.0, reflects improved fundamentals and positive outlook. The mojo grade of Buy is supported by a market cap grade of 1, indicating strong market capitalisation quality. This upgrade likely contributed to the increased call option interest as investors recalibrate their expectations for the stock’s near-term performance.
Such upgrades often attract institutional buying and can trigger momentum-driven option trades, as evidenced by the surge in call contracts. The stock’s ability to maintain gains above key moving averages further validates the bullish stance.
Liquidity and Trading Considerations
Infosys exhibits sufficient liquidity, with a 5-day average traded value supporting trade sizes up to ₹15.91 crores without significant market impact. This liquidity is crucial for option traders and institutional investors who require efficient entry and exit points. The delivery volume of 26.95 lakhs on 6 January, despite a recent decline, remains substantial, indicating continued investor interest in the underlying shares.
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Outlook and Investor Takeaways
Investors should view the heightened call option activity as a signal of growing bullish conviction in Infosys ahead of the January expiry. The combination of a recent mojo upgrade, strong technical positioning, and large open interest at a near-the-money strike price suggests that market participants expect positive price action in the coming weeks.
However, the slight decline in delivery volumes warrants caution, as it may indicate some profit-taking or hesitancy among long-term holders. Traders should monitor the stock’s ability to sustain gains above the 1640 level and watch for any sectoral or macroeconomic developments that could influence sentiment.
Given Infosys’s large-cap status and liquidity, it remains an attractive option for both directional bets and hedging strategies. The current environment favours a bullish stance, but prudent risk management remains essential given the inherent volatility around option expiry dates.
Summary
Infosys Ltd’s surge in call option trading at the 1640 strike price ahead of the 27 January 2026 expiry highlights a bullish market outlook supported by a mojo upgrade and strong technicals. While the stock has slightly underperformed its sector on the day, its overall momentum and liquidity profile make it a compelling candidate for investors seeking exposure to the Computers - Software & Consulting sector’s growth potential.
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