Strong Call Option Volumes Concentrated Near Current Price
The most active call options for Infosys are clustered around strike prices ranging from ₹1,020 to ₹1,200, all expiring on 28 July 2026. Notably, the ₹1,020 strike saw the highest number of contracts traded at 6,917, generating a turnover of ₹1,194.43 lakhs and an open interest of 2,737 contracts. This strike is slightly out-of-the-money given the current underlying price of ₹1,034, indicating traders are positioning for a modest price appreciation.
Close behind, the ₹1,050 strike recorded 6,268 contracts traded with a turnover of ₹758.93 lakhs and a substantial open interest of 7,929 contracts. The ₹1,040 strike also attracted significant attention with 5,153 contracts traded and turnover of ₹713.18 lakhs, alongside an open interest of 4,632. These figures highlight a strong concentration of bullish bets just above the current market price, signalling confidence in a near-term rally.
Out-of-the-Money Calls Reflect Optimism for Larger Upside
Further out, the ₹1,200 strike call options saw 4,354 contracts traded, albeit with a lower turnover of ₹67.75 lakhs but a notably high open interest of 8,428 contracts. This elevated open interest at a strike price nearly 16% above the current level suggests that some investors are speculating on a more pronounced upside move by the end of July. The disparity between turnover and open interest here may indicate that many positions are being held rather than actively traded, reflecting longer-term bullish sentiment.
Market Context and Stock Performance
Infosys has outperformed its sector and the broader market in recent sessions. On 2 July 2026, the stock gained 5.02%, outperforming the IT - Software sector’s 2.64% rise and the Sensex’s modest 0.61% advance. The stock also reversed a four-day losing streak, opening with a gap up of 2.14% and touching an intraday high of ₹1,032, just shy of its current price. Despite this, Infosys remains below its key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), indicating that the recent gains may be an early sign of a trend reversal rather than a confirmed uptrend.
Investor participation has waned somewhat, with delivery volumes falling 23.7% against the five-day average, suggesting cautious optimism. However, the stock’s high dividend yield of 4.93% at the current price level continues to attract income-focused investors, supporting the underlying demand.
Mojo Score Upgrade Reflects Improving Fundamentals
Infosys’s MarketsMOJO score has improved to 60.0, upgrading its grade from Sell to Hold as of 13 April 2026. This upgrade reflects a stabilisation in the company’s fundamentals and valuation metrics, although the stock remains a large-cap with a market capitalisation of ₹3,99,854 crores. The Hold rating suggests that while the stock is not yet a clear buy, it is no longer viewed negatively by the rating agency, aligning with the cautious bullishness seen in the options market.
Implications for Investors and Traders
The concentration of call option activity near and above the current price level indicates that market participants are positioning for a potential upward move in Infosys shares over the next few weeks. The high open interest at the ₹1,050 and ₹1,200 strikes, combined with robust turnover at near-the-money strikes, suggests a blend of short-term trading and longer-term speculative interest.
Investors should note that while the recent price action and options data point to bullish sentiment, the stock’s position below key moving averages and reduced delivery volumes warrant a cautious approach. Monitoring the stock’s ability to sustain gains above the ₹1,050 level and break through resistance near ₹1,070 will be critical in confirming a sustained uptrend.
Expiry Patterns and Strategic Considerations
The 28 July 2026 expiry is attracting significant open interest, which may lead to increased volatility as the date approaches. Traders holding call options at strikes above ₹1,040 could benefit from a rally, but should also be mindful of time decay and implied volatility changes. The clustering of open interest at multiple strikes provides potential support and resistance zones, which can be used to inform entry and exit points.
Given the stock’s recent outperformance relative to the sector and Sensex, alongside the improved Mojo rating, investors may consider a measured bullish stance while maintaining risk controls. Diversifying exposure and employing stop-loss strategies could help mitigate downside risks in the event of a market pullback.
Conclusion
Infosys Ltd’s active call option market ahead of the 28 July expiry reveals a clear tilt towards bullish positioning among traders and investors. The combination of strong volumes, elevated open interest at key strikes, and recent price gains suggests optimism about the company’s near-term prospects. However, the stock’s technical setup and delivery volume trends counsel prudence. For market participants, the coming weeks will be pivotal in determining whether Infosys can capitalise on this positive momentum and break out of its recent trading range.
