Infosys Ltd Sees Robust Call Option Activity Signalling Bullish Market Sentiment

Call Option Activity Highlights

On 23 January 2026, Infosys witnessed a remarkable surge in call option trading, with 7,652 contracts exchanged at the ₹1680 strike price expiring on 27 January 2026. This volume translated into a turnover of ₹101.62 lakhs, underscoring the substantial interest in bullish bets on the stock. Open interest at this strike stands at 12,597 contracts, indicating sustained commitment from market participants to this price level.

The underlying stock price closed at ₹1668.90, just shy of the ₹1680 strike, suggesting that traders are positioning for a near-term upside move. The concentration of activity at this strike price, coupled with the high open interest, points to a consensus expectation that Infosys could breach this level before expiry.

Price and Technical Performance

Infosys has been steadily gaining momentum, with the stock recording a 0.49% increase on the day, slightly underperforming the sector’s 0.60% gain but outperforming the Sensex’s modest 0.04% rise. The stock has delivered consecutive gains over the past two sessions, accumulating a 1.17% return during this period. Notably, the price has traded within a narrow range of ₹12.20, reflecting a consolidation phase ahead of a potential breakout.

Technically, Infosys is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a strong uptrend. This alignment of moving averages often attracts momentum traders and institutional investors, reinforcing the bullish sentiment evident in the options market.

However, investor participation has shown signs of moderation, with delivery volumes on 22 January falling by 35.35% compared to the five-day average, registering 32.58 lakh shares. Despite this dip, liquidity remains robust, with the stock capable of supporting trade sizes up to ₹30.11 crore based on 2% of the five-day average traded value.

Fundamental and Market Context

Infosys Ltd operates within the Computers - Software & Consulting industry and is classified as a large-cap stock with a market capitalisation of ₹6,74,434 crore. The company’s Mojo Score currently stands at 70.0, reflecting a positive outlook, and it has recently been upgraded from a Hold to a Buy rating as of 22 December 2025. This upgrade is supported by improved fundamentals and favourable market positioning.

The stock’s Market Cap Grade is rated 1, indicating its status as a heavyweight in the Indian equity markets. Such a rating often attracts institutional investors seeking stability combined with growth potential, which is consistent with the observed bullish options activity.

Expiry Patterns and Investor Positioning

The expiry date of 27 January 2026 is drawing significant attention, with the ₹1680 strike price emerging as a focal point for traders. The high open interest at this strike suggests that many investors are either hedging existing positions or speculating on a breakout above this level. Given the underlying price proximity and the stock’s technical strength, the market consensus appears to favour a positive outcome.

Such concentrated call option activity often precedes notable price movements, as traders adjust their positions in anticipation of earnings announcements, sector developments, or broader market trends. In Infosys’s case, the steady gains and technical indicators support the likelihood of a bullish continuation.

Implications for Investors

For investors, the surge in call option activity at the ₹1680 strike price signals a growing consensus on the stock’s near-term upside potential. The combination of technical strength, recent rating upgrade, and large-cap stability makes Infosys an attractive candidate for bullish strategies.

However, the recent decline in delivery volumes suggests some caution, as reduced investor participation could indicate profit-taking or consolidation. Traders should monitor open interest trends and price action closely as expiry approaches to gauge whether the bullish momentum sustains.

Given the stock’s liquidity and trading volumes, investors can execute sizeable trades without significant market impact, which is favourable for both institutional and retail participants.

Sector and Market Comparison

Infosys’s performance today aligns closely with the Computers - Software & Consulting sector, which gained 0.60%, slightly outpacing the stock’s 0.49% rise. The Sensex’s marginal 0.04% increase highlights Infosys’s relative strength within the broader market context. This outperformance is consistent with the positive sentiment reflected in the options market.

As a large-cap leader, Infosys often sets the tone for the sector, and its bullish positioning could encourage similar sentiment among peer stocks in the software and consulting space.

Conclusion

Infosys Ltd’s dominant call option activity ahead of the 27 January 2026 expiry underscores a bullish market stance, supported by solid technicals and a recent upgrade to a Buy rating. The ₹1680 strike price has become a key level watched by traders, with significant open interest and turnover indicating confidence in a near-term price advance.

While some caution is warranted due to falling delivery volumes, the overall outlook remains positive for investors seeking exposure to a large-cap software and consulting leader. Monitoring the evolving options landscape and price movements will be crucial in the coming days to capitalise on potential opportunities.

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